Digital signature slices red tape

MINI EXIM POLICY 2004- INITIATIVES

In a bid to reduce transaction cost of exports, the commerce ministry today introduced significant changes to simplify procedures in the mini Exim Policy.

These include allowing exporters to use digital signatures for almost any transactions, permitting electronic transfer of funds and allowing the setting up of facilities for exchanging messages in the electronic format to customs departments and banks.

While the Centre had passed the Information Technology Act last year to permit the use of digital signatures, the RBI had not operationalised the same so that they could be used by exporters.

The use of digital signatures will now allow these traders to send high value funds across international borders without having to clear them through a time consuming paper based operation.

According to a study done by the Exim Bank in 2002, the total transaction cost for Indian exports was about Rs 5,000 crore for the economy annually.

The Exim Policy says "all these will not only reduce transaction costs for the exporting community but also impart greater transparency and reduce discretion while availing various benefits under the Exim Policy".

P Samanta, executive director of a Delhi based export house said these measures will speed up the pace of transactions between shippers and the customs and port authorities and also reduce the possibility of bogus filing of bill of lading, invoices and other export related documents with banks.

He said allowing digital signatures and electronic message transfer would give credibility to the sharing of documents along the Internet. Hitherto they played a supporting role and could not be used as a clinching evidence of shipments.

The Customs department can now offer the electronic data interchange facility as it has established the electronic data interchange link with the Customs House and Central Excise commissionerates in this fiscal year.

Not only that, led by the Internal Container Depot at Tughlakabad in New Delhi, the other internal container depots in the country have begun to automate their procedures.

At present, exporters have to make two trips to the custom house,one to submit the data and other to present the hard copy of documents but now exporters would be able to compelete all formalities from the comfort of their office.