COME APRIL 1, 2002, the Customs Department will introduce the Preliminary Inspection and Post Audit (PIPA) System as a pilot project, slated to run for two months.
The system is part of Customs' thrust to reduce processing time and expedite the clearance procedure. It seeks to achieve an error-free procedure accessible by Customs brokers on the electronic system, and is based on the greater use of post-entry audit rather than detailed, pre-clearance checking.
The Department is aiming for same-day service on entries lodged under this streamlined process, which is considered a first step towards achieving paperless processing.
In a statement released recently, the Customs Department said the pilot will involve customs brokers who file entries electronically and had low error ratings of five per cent or less from October to December 2001. The goal is that, during the pilot, customs brokers with error ratings up to five per cent will reduce these figures to zero, while the others will seek to achieve the level required to become eligible for inclusion in the project.
While commending customs brokers who significantly improved their standard of accuracy over the last few years, Customs said there will be close monitoring of the pilot and brokers who exceed the five percent error rate over a quarter, will be dropped from the scheme.
Brokers will be required to agree to the specified conditions including a 12-hour turnaround on entry queries and payment of any additional duties discovered as a result of an audit check within twenty four hours of being notified, given the minimal checking of the hard copy entry upon lodgement and the reliance on post-entry audit.
