The “Blue Channel facility” has been put into place by the Federal Board of Revenue (FBR) as part of the Risk Management System (RMS) for the purpose of scanning imported shipments using selectivity criteria based on the RMS.
In order to achieve the goals of security and trade facilitation in light of the WCO SAFE Framework of Standards, the “Blue Channel facility” was introduced in RMS, which allows consignments to be selected for scanning through RMS-based selectivity criteria.
The module is successfully in use in the ports of Mohammad Bin Qasim and Karachi. During 2021–2022, the blue channel processed 981 GDs in total. To supplement the non-intrusive inspections, the system was introduced.
According to the report, more procedures are being automated to improve the (Risk Management System) RMS and promote trade.
Implementation of Blue Channel Facility
Import Risk Evaluation Engine (IREE), a more recent iteration of the predictive analysis algorithm based on an updated machine learning cycle, was implemented in 2021–2022 and has significantly improved the RMS’s ability to target risky consignments with precision, leading to a 9% increase in green channel clearances over the prior year.
Due to involvement, physical inspection of imported goods was reduced by 8% for imports and by 11% for exports in 2021–2022 compared to the previous year.
Selectivity criteria were developed in the RMS for automatic processing/ sanctioning of such claims with direct payments to exporters’ bank accounts through State Bank of Pakistan in an effort to further reduce human-interface in processing exporter’s duty drawback claims.
In FY 2021–2022, 72% of rebate claims were handled via the green channel, and as of right now, 83.5% of refund payments are made via this channel.
Pre-arrival/pre-clearance was implemented in FY 2020–21 with the goal of complying with standard 3.25 of the Revised Kyoto Protocol. This has also made it possible to comply with Article No. 7 of the Trade Facilitation Agreement (TFA).
A total of 14,172 consignments were cleared in 2021–2022 prior to the arrival of goods at ports under ‘Blue Channel Facility’.
To achieve the goals of anonymous evaluation and speedy clearance of consignments, a system-based assessment of goods declarations has been developed through the “Virtual Assessment” module, which is based on tight selected criteria.
For FY 2021–2022, 1109 GDs in total have been handled through virtual assessment.
The module of RMS on manifest has been deployed in order to further decrease the risk of the import and export of prohibited goods, and the RMS will now operate on both the manifest and the trader’s goods declaration, according to the FBR report.
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