Govt may cut transaction costs

Measures to simplify export procedures on the cards.

The government will look into a slew of measures to simplify the existing regime for exporters and reduce transaction costs.

These will include allowing credit payment for certain transactions, a single documentation centre, allowing bonds instead of bank guarantees and a single bank account per exporter to claim drawback.

The measures were recommended by an inter-ministerial group comprising representatives from the commerce department, the revenue department, the Federation of Indian Chambers of Commerce and Industry and the Federation of Indian Export Organisations.

"The documentation centres, which would be initially located in trading centres like Delhi, Mumbai, Chennai and Kolkata, would provide all clearances like export order and certificates for standards or packaging at a single point. Traders are required to obtain these clearances before they undertake export or import," an official said.

The centres would be operated jointly by the Directorate-General of Foreign Trade and the customs, shipping, environment and health departments, which provide various clearances for export and import.

The inter-ministerial group had also suggested that exporters be allowed to operate a single bank account to claim drawback against the present system of maintaining a separate bank account for each place of export.

Besides, it had recommended that a single trader be allowed to furnish a single bond against various licences obtained by him against the present practice of having a separate bond for each licence.

Similarly, the group had favoured allowing furnishing of bonds against the present practice of obtaining a bank guarantee for transhipment of goods beyond a certain weight.

"The report by the inter-ministerial group has also said that the feasibility of allowing payment through credit for certain transactions should be examined," an official said.

Officials added that benchmarking of services to ensure that the services required to be provided by the government departments were delivered within a specified time period was also suggested.

In addition to speeding up electronic data interchange, the report had also suggested adoption of a risk-based management system to speed up clearance of cargoes.