Customs' sustained improvement pays

India's ranking on the criterion of ‘trading across borders’ improved by sixty six in the World Bank’s report on ‘ease of doing business’. That is mainly due to initiatives taken by the Customs department to raise awareness on the facilities available and better use of information technology.

The report says the Indian Customs introduced or improved electronic submission and processing of documents for export and import, strengthened the border infrastructure for import and enhanced administration and inspection for export and import. And, that India has supported its ambitious reform agenda by regular training to both Customs officials and private sector agents. Also, by establishing Customs Clearance Facilitation Committees, which bring together the actors involved in international trade at regular meetings. 

The facility for advance noting of bills of entry was introduced several decades earlier. Online filing of bills of entry and shipping bills was brought in more than ten years before. An Accredited Clients Programme (ACP) started in 2002. Direct Port Delivery was introduced in 2008. Self-assessment of bills of entry and shipping bills has also been in vogue since 2011. Self-sealing and self-certification for export cargo was extended to all manufacturers in 2003. A risk management system was initiated in 2005. Examination norms for export goods were previously  revised in 2009. The Authorised Economic Operator (AEO) programme was introduced in 2011. The facility of using a digital signature certificate for filing customs process documents, viz bills of entry, shipping bills, import and export general manifest, etc -- from remote locations was introduced in 2015. 
 

The ACP and AEO programmes were merged into a single three-tier AEO one in 2016. Issuance of electronic delivery orders was introduced in 2015. A single window interface for facilitating trade (SWIFT) was introduced in 2016. However, most of these facilities were optional and not being used extensively by exporters or importers. 

A couple of years earlier, the Customs decided to raise awareness among importers and exporters on the available facilities. And, to push them to better use of these. Advance filing of bills of entry was made obligatory. They reached out and made direct port delivery facilities available to thousands of large importers, even if the latter had not opted for it.

Also, the filing of documents required for cargo clearance by Customs or other agencies online was made compulsory. The filing of bills of entry, shipping bills, import and export general manifest, etc, from remote locations by using a digital signature was made mandatory. The facility of deferred payment of duty was introduced. Consequently, the costs and dwell time of import cargo at ports came down significantly. 

Last year, the Customs also made compulsory the electronic sealing of containers by exporters under a self-sealing procedure. The option to call officers to exporters’ premises for sealing export containers was withdrawn. The direct port entry facility was extended to all factory-sealed containers. 

And, in general, small steps that improved local procedures, the better use of information technology (IT), paperless processing of applications through the ‘e-sanchit’ project, enhanced facilitation through risk management systems, attitudinal changes, e-communication, improved website interface and a more robust IT platform, enhanced training and better office infrastructure continued at a brisk pace. All contributing to lower costs and speedy movement of cargo. 

In sum, the Indian Customs deserve praise for the improvement in the ranking. 

Email: tncrajagopalan@gmail.com