 "A crow flies past a container ship docked at a port in Vallarpadam in Kochi")
To push its 'Make in India' drive, the government will soon be announcing a scheme to extend single port clearance, deferred duty payment and relief from routine checks for select importers.
The finance ministry is uniting and expanding the scope of two existing programmes for importers, the Accredited Clients Programme (ACP) and the Authorised Economic Operator (AEO) scheme. It will extend direct port transfers, allowing members to move their cargo as it arrives at a land or sea port to a warehouse without checks. "The framework has been finalised, after consulting the industry. It is aimed to significantly cut time and cost for importers and boost domestic production," said a ministry official.
Only members of the revamped scheme will be eligible for deferred payment benefits. The new scheme will have a benefits matrix, extending most of the benefits, including assured clearance from ports, to direct manufacturers in India.
"We will divide a month into two. Importers in the revamped AEO scheme and bringing in shipments by the 15th of a month will get to make payments by a particular date of the second fortnight. Similarly, those bringing in consignments during the second fortnight will have to make payments by a specified date at the beginning of the second month," said an official, who did not wish to be named. "The move will significantly help importers with cash flows."
Members will be graded on compliance history. "Those in the business for long and dealing with non-sensitive countries will be rated a higher grade of low risk," said the official. "Importers can keep the transporter ready at the port ahead of the arrival of the cargo and plan their inventories better without a lag."
An AEO programme offers members reduced examination and inspection, higher facilitation than ACP clients, and acceptance of pre-arrival import declarations. Only about 18 entities so far have AEO status in India. The ACP Programme, begun in 2005, has about 300 members; 13 per cent of imports are through this route.
The government is aiming that at least 40 per cent of imports occur through the revamped programme, with at least 1,000 members. The US has 11,000 members as part of an AEO programme.
The government will probably do away with the eligibility criterion of Rs 10 crore of imports in the earlier financial year, to encourage medium and small enterprises to be a part of this scheme.
"Under the revamped scheme, there will be no value thresholds. Minimum documentation will be required," he said. While manufacturers will be given preference, traders will not be barred.
"Entry norms were tough under the earlier scheme and not many could qualify. We're easing the minimum import norms, without making the scheme weak. Those with doubtful credentials will not be allowed to join," said another official.
The Central Board of Excise and Customs is holding consultations with other government departments, to come on board and mutually recognise imports, and opt for only risk-based assessment for member-importers.
"Talks are also on with the service tax and excise duty departments to work out a process for mutual recognition," said an official.
IN THE OFFING
nThe finance ministry is uniting and expanding the scope of two existing programmes for importers, the Accredited Clients Programme and Authorised Economic Operator scheme
nOnly members of the revamped scheme will be eligible for deferred payment benefits
nOnly about 18 entities so far have AEO status in India, while the ACP Programme has about 300 members
n13 per cent of imports are through this route
nGovt is aiming that at least 40 per cent of imports occur through the revamped programme, with at least 1,000 members
