The Federal Board of Revenue (FBR) has extended the period up to January 15, 2021, for the companies to complete the bidding process and other legal formalities before rolling out of the Track and Trace System for electronic monitoring of tobacco, cement, sugar, and fertilizer by June 30, 2021.
Sources close to the matter told ProPakistani that the last date of the bids was December 19, 2020, as the Track and Trace System has been planned to be rolled out by June 30, 2021. The FBR has provided another opportunity to the bidders to complete their process by January 15, 2021.
In order to prevent leakage of federal tax revenue and under-reporting of production and sales of tobacco, cement, sugar and fertilizer products (the “Goods”) and to ensure proper payment of duties/taxes on the manufacture and sale of the Goods, FBR is mandated to license the development, implementation, operation and maintenance of a track and trace system (the “System”). The System shall cover all Goods manufactured in and imported into Pakistan and also products manufactured in Pakistan for export.
The System shall include a secure, dedicated smart mobile phone application enabling duly authorized representatives of FBR and of other Pakistan Government agencies automatic authentication of a UIM and capturing traceability information in both offline and online modes.
The licensee(s) will be responsible for end-to-end installation and operation of a Track and Trace System/ Solutions connecting manufacturing sites and import stations to the FBR’s Central Control Room (CCR). The Track and Trace System/Solutions would include the provision of tax stamps and integrated codes to enable real-time electronic monitoring of the above products throughout Pakistan.
The system must enable FBR to:
- Monitor production activities of the concerned production lines, factory premises, and designated import stations;
- Generate near real-time information about volumes of the Goods produced at the manufacturing lines;
- Obtain validated information during manufacturing that will support the correct collection of applicable taxes levied on the Goods;
- Collect validated inputs at manufacturing for determination of the origin and legal status of the Goods after manufacturing.
Instructions for Licensing (IFL)/document can be collected from the FBR s on any working day through written application. All the applicants shall submit their technical and financial proposals in sealed envelopes separately, which will be evaluated as per evaluation criteria given in the IFL and related annexures.
The data and other information obtained directly or indirectly from the manufacturer and/or importers of the Goods or otherwise including information transmitted through any means shall be the property of FBR and the Licensee shall not disclose this data and other information to any third party without prior approval of the FBR.
The licensee shall not sell or commercially exploit the above data or use it for any other purposes than of the License.
The Licensee will be responsible for maintaining the confidentiality of System data, mitigation of data breaches and will bear all associated costs. Confidentiality obligations will extend to the Licensee personnel and to any third parties or affiliates involved in the provision of the System or services, with the Licensee retaining primary responsibility for any breach of confidentiality, the FBR maintained.
The FBR had held a pre-bidding conference for the grant of a five-year license for an IT-based solution for electronic monitoring (Track and Trace System) of specified goods i.e. tobacco, cement, sugar and fertilizer.
The functions, features, and purpose of implementing the Track and Trace System in Pakistan, which include a minimum human interface, preventing leakage of revenue, under-reporting sales of specified goods and ensuring proper payment of duty/taxes.
The Licensee shall be responsible for safe and secure capture and real or near-real-time transmission of the System related information from the production lines, factory premises and designated import stations to FBR control rooms.
In addition, the Licensee shall ensure that the System relevant monitoring data captured in the field by FBR or representatives of other duly authorized Pakistan Government agencies are transmitted in the manner that will be readable/ translatable for the purpose of the License, without incurring any additional cost to the Goods manufacturers. In both cases, the Licensee shall ensure that in case of network outages the data shall be securely stored for later synchronization with FBR control rooms.
The Licensee shall provide a complete MIS, including an analytical dashboard, enabling FBR to access and evaluate the events, gaps and other deviations from the normal production process. The data shall be displayed on a geographical map of Pakistan that will enable data analytics and effective reporting by FBR, the tobacco data collection and reporting need to support the compliance by Pakistan with its obligations under Articles 8 and 9 of the FCTC Protocol.
Ownership of the System data will vest with FBR on behalf of the Government of Pakistan. The Licensee will have the right to access and use the System data solely for the authorized operation of the System. The Licensee shall not disclose the data to any third parties including affiliates and keep the data confidential.