Technical Assistance for the Development of Green Customs Strategy for Pakistan Customs and Related Training

Scope of Work (SOW)

Introduction: The USAID-funded Pakistan Regional Economic Integration Activity (PREIA) is a nine-year (2015-2024) Project that provides technical, advisory, and capacity building support to the Government of Pakistan (GoP) and private sector stakeholders with an aim to enhance Pakistan’s trade competitiveness and increase its trade volumes. In doing so, the Activity primarily focuses on policy development and reform, customs facilitation, regional integration, and trade/investment promotion to strengthen Pakistan’s ability to compete in international markets.

USAID|PREIA consists of two key components: Component 1 aims to improve Pakistan’s business enabling environment so that policies, laws, and regulations are adaptable and more reflective of on-the-ground needs; and Component 2 is geared towards improving Pakistan’s capacity to access regional markets by identifying bottlenecks and practical solutions for increasing export efficiency and lowering trade costs. Component 2 is divided into two sub-components. The first sub-component relates to providing support on enhancing regional trade and transit facilitation, simplifying/harmonizing customs procedures and addressing barriers to trade. In accordance with this mandate, USAID PREIA engages with key Government of Pakistan (GoP) stakeholders, such as Federal Board of Revenue/Pakistan Customs.

PREIA’s efforts so far have helped the GoP increase automation within Pakistan Customs and other government agencies (OGAs), to increase efficiency and transparency; and has helped both the GoP and the private sector involved in trade leverage international best practices and technology to increase trade and transit competitiveness.

There is a growing realization that implementation of environmental standards in international trade is now an important matter and organizations are more cognizant of their impact on climate change. Specifically, customs authorities across the globe are moving towards the implementation of stricter and more eco-friendly regulations. Recognizing the growing trend towards environmental sustainability, Pakistan Customs is committed to becoming an environmentally responsible authority.

Background: 

The growth of global trade and the increasing integration of global value chains has raised concerns about how trade and the environment interact with one another. Economic growth driven by trade expansion can have detrimental consequences for the environment, such as increased air and water pollution, as well as the depletion of natural resources. According to World Bank estimates, environmental degradation costs between 5 and 10 percent of GDP in India, Bangladesh, Nepal, and Pakistan.[1]

Effective environmental regulations and institutional frameworks are required at all trade levels (local, regional, national, and international) to reduce the adverse environmental effects of trade expansion and liberalization.

In this regard, some of the environment-related efforts undertaken are:

• Efforts under the International Forums such as World Trade Organization (WTO) framework, OECD, UNEP and Green Customs Initiative.
• Inclusion of environmental provisions in bilateral and regional trade agreements,
• Efforts to harmonize environmental regulations between developed and developing countries, and
• Provision of resources and institutions for capacity building of less-developed partners to strengthen environmental regulations.

Major economies have also pledged to take aggressive action to combat climate change, including a commitment by the United States to reduce its emissions by 50 percent by 2030 from 2005 levels and the European Union’s Green Deal announcement under which it commits to climate neutrality by 2050.[2]

UNEP, at the forefront of global environmental advocacy, emphasizes the need for integrated approaches to sustainable development, urging nations to harmonize their policies with environmental best practices. Pakistan's commitment to developing a green customs framework resonates with the UNEP's call for proactive measures to minimize the ecological footprint of international trade. The Green Customs Initiative, a collaborative effort between UNEP, the World Customs Organization (WCO), and partners, seeks to enhance the capacity of customs and other relevant authorities to address environmental challenges associated with cross-border trade.

Pakistan has been fully cognizant of the global orientation towards sustainable development and climate-friendly practices and has firmly committed itself to international initiatives aimed at fostering environmental resilience. In response to the pressing need for environmentally responsible trade practices, Pakistan Customs/Federal Board of Revenue (FBR) and Pakistan Single Window (PSW) are embarking on a transformative journey towards more eco-friendly customs processes and sustainability in trade. Specifically, Pakistan Customs has initiated a pioneering effort to develop a Green Customs Strategy to synchronize its regulatory and operational framework with international environmental protocols. The initiative to develop a Green Customs Strategy by Pakistan Customs / FBR signifies a crucial alignment with the objectives set forth by the United Nations Environment Program (UNEP) and the broader Green Customs Initiative. The Green Customs strategy shall also evaluate best practices from the Green Customs Initiative and draw inspiration from successful models such as the US CBP’s Green Trade Strategy. This initiative reflects a commitment to promote and foster environmental resilience in economic growth prospects, recognizing that the two are inherently interconnected in the global landscape. This activity also aligns with the USAID Country Development Cooperation Strategy’s (CDCS) Development Objective # 3- Increased Private sector Led Inclusive Economic Growth. Moreover, USAID PREIA has been prioritizing climate change risk mitigation activities. In this context, PREIA plans to support Pakistan Customs with the development of a Green Customs Strategy, which will be accompanied by a dedicated training program.

Objectives and Scope

PREIA is seeking the services of a firm to develop a Green Customs Strategy Document for Pakistan Customs as well as conduct associated training sessions. This activity aims to empower Pakistan Customs officials by raising awareness and strengthening their capacity to adhere to trade rules, environmental agreements, and national laws. This project will take three months in total. During the first two and half months, the firm will be collaborating closely with key stakeholders to develop a roadmap and implementation framework in shape of a Strategy document, and further 2 weeks to impart training to Pakistan Customs and other stakeholders in this area.

Tasks (Performance Requirements)

The company/firm is expected to perform the following tasks:

Inception Report:                                                                                                           

Submit Inception Report that will serve to provide the methodology, approach, and project plan for the entire activity. The report is expected to include background, implementation methodology, work schedule, and risk mitigation measures.

Gap Analysis:                                                                                                                             

Review existing policies, legislation and operational framework of Customs and other relevant Ministries/Departments to identify areas of improvement from a green customs/environmental lens.

Study and integrate international best practices in Policy, Strategy and Practices with reference to Green Trade Practices and Green Customs, adapting them to the Pakistani context.

Document findings and recommendations, considering the harmonization of practices globally.

Stakeholder Consultations:

In collaboration with Pakistan Customs as the lead department, engage key stakeholders such as Ministry of Climate Change, Ministry of National Food Security & Research, Ministry of Energy, Ministry of Industries and Production, Ministry of Foreign Affairs and Ministry of Commerce alongside environmental organizations, industry experts, and academia to design, validate, and refine proposed policies.

Organize stakeholder consultations with a focus on incorporating insights from global environmental organizations.

Implementation Framework:

Develop a robust implementation framework and action plan aimed at adoption of green policies, alignment with international benchmarks, and recommend changes to the regulatory framework.

Strategy Document Development:

Based on the preceding tasks, develop a Green Customs Strategy document that establishes a strategic framework that outlines environmentally conscious trade practices specific to Pakistan, including implementation framework and roadmap for changes in regulations, incentives, and guidelines

Training, Capacity Building and Awareness:

Conduct training sessions and capacity building workshops based on international best practices/success stories related to green customs.

Submit a report with complete training module/material including lessons learnt and suggestions for next steps.

Required Deliverables and Payment Schedule

The company/firm will be responsible for delivering the following:

• Completed Inception Report that includes project scope, team structure, roles and responsibilities, work plan, project execution/ implementation methodology, and risk mitigations actions.

• Completed Gap analysis of existing customs and trade-related policies as per scope of the activity.

• Completed stakeholder engagement for consultations to design, validate, and refine proposed policies in accordance with the scope of the activity.

• Completed Implementation Framework and Action Plan as per scope of the activity.

• Completed Green Customs Strategy Document that covers the areas as defined in the objective and scope of the activity.

• Completed training sessions conducted through an International Expert for institutional capacity building and increased awareness. 

Qualification and Experience

Only firms (not individual consultants) are eligible for this consultancy. This includes both domestic and international firms, as specified in Chapter/Section 10.3. The ideal candidate for the Consultancy Services (Firm) role should possess the following qualifications:

1. The firm should have prior national/international experience and capacity of working in context of Green Trade Practices and Climate Change Mitigation in trade. Experience of working with Single Window environment, Customs Operations, and other cross border trade related solutions either directly or in partnership with other firms will be an added advantage. Specific experience with the implementation of the IPCC and UNFCCC guidelines is considered an asset.

2. The firm should have demonstrable track record of successfully managing and delivering complex projects on time;

3. Team Leaders proposed by the firm must have a minimum of 15 years’ relevant prior experience and should possess knowledge of trade, customs, environment, climate change, project management, and relevant best practices. Specifically, individuals of the firm should have a minimum of 5 years’ experience related to delivering technical assistance to public or private sector in Climate change risk management.  Previous participation in the Consultative Group of Experts (CGE) is considered an asset.

4. The team must possess knowledge regarding international green customs regimes and relevant best practices.

5. Knowledge of illegal international trade in environmentally sensitive commodities including relevant policies, regulations and laws is essential.

6. The team members should possess Masters or higher degree in relevant fields such as economics, international trade, finance, environmental science, sustainability, energy economics, climate change, or a related field.

7. The team members should have experience in climate change mitigation tools and strategies, customs procedures, trade practices and public sector rules and regulations.

8. Solid experience in delivering technical assistance to public or private sector in the area of Climate change risk management/environmental sustainability and global trade.

Base of Operations: 

Flexible with occasional visits to Islamabad, Lahore and Karachi. Travelling to the locations and accommodation will be the responsibility of the selected firm. 

Reporting:

The company/firm will report to the Customs and Trade Facilitation Advisor (Component 2a Lead) of USAID PREIA.

Payment Schedule

Please refer 11.1.3 above for details.

(Please use attachment 11.2 template)      

Estimated Completion Time

The assignment needs to be completed within (03) months. (2.5 months for Green Customs Strategy Development and 2 weeks for Training)

[1]https://www.worldbank.org/en/topic/environment/publication/environment-strategy-toward-clean-green-resilient-world

[2] https://blogs.worldbank.org/psd/global-investors-shift-focus-sustainability-amid-push-green-recovery