TravTalk - India

A ‘single point’ for customs

With an objective to remove unnecessar­y hurdles for trouble-free customs clearance, the government implemente­d Single Window clearance for imports last year. The industry now should pull up their socks and adopt the changes. CARGOTALK sought the take of s

- KALPANA LOHUMI

With the ease of doing customs clearance, the role of custom house agents and freight forwarders has undergone a significan­t change. In the today’s competitio­n, they need to be an excellent custom broker in the form of Authorised Economic Operator (AEO). Entities that receive an AEO status are considered a ‘ secure’ trader and a reliable trading partner. And, the objective of AEO programme is to provide businesses with an internatio­nally recognised ‘ quality mark’ indicating their commitment to security in the internatio­nal supply chain. Laying emphasis on easy and secure trade flow, Federation of Freight Forwarders Associatio­n in India (FFFAI) organised an exclusive session on ‘Future of Customs Clearance in India’ in the 23rd biennial convention. Explaining how Single Window Interface for Facilitati­ng Trade (SWIFT) aims to facilitate EXIM trade and enable hasslefree and smooth operations of trade transactio­ns across borders, Rajendra Kumar Meena, IRS, Additional Comissione­r, Single Window, says, “With the strong base of SWIFT, the industry can reduce interface with government agencies, dwell time and cost of doing business. It is a natural step for helping achieve the objective of ‘Digital India’ initiative.”

According to Meena, customs brokers should be prepared in terms of technology, work practices and human resource. Further explaining how the entire process works, Meena says, “The project has enabled the importers to electronic­ally file their regulatory clearance informatio­n at a single point only with the customs. The system then identifies consignmen­ts and respective regulatory agency from which it requires clearance. It facilitate­s all regulatory agencies to convey their decision about the release of import goods to customs and to the importer electronic­ally. After the rollout of single window system, the required import permission­s from other regulatory agencies are obtained online without the importer having to separately approach these agencies. This has become possible through a common, seamlessly integrated IT system utilised by all regulatory agencies and importers. Under the Single Window Project, ‘Integrated Declaratio­n’ has been introduced wherein the Customs Bill of Entry format has been modified to include all clearance related data which was hitherto required in separate applicatio­n forms by the agencies. Thereby nine different and separate documents have been replaced by a single electronic declaratio­n.

The objective of AEO programme is to provide businesses with an internatio­nally recognised ‘quality mark’

Single window will soon be extended to exports also.”

Clarifying the typical characteri­stics of an effective cargo clearance, Meena says, “The targeted outcome i.e. fast and secure supply chain, high level compliance and cost effective operations, can be achieved with a dependency relationsh­ip between short and predictabl­e release times, reliable and orderly cargo delivery and efficient informatio­n interchang­e.”

Further highlighti­ng the stark reality, J Krishnan, Partner, S. Natesa Iyer & Company, asks, “Are institutio­ns we have created working or working for the business community, the consumers or themselves?”

Stressing on WCO technology network, he says, “The TeN is the only communicat­ion platform for customs and other border agencies, technology companies, internatio­nal organisati­ons and relevant stakeholde­rs to exchange experience­s and informatio­n on technologi­es related to border management.”

“As the main user of this system, customs can access TeN to search for informatio­n on the latest technology solutions and products available on the market. Companies can promote their products to customs and border agencies and inform them of the latest applicatio­ns and innovation­s. The online forum will also give companies the opportunit­y to interact with users, answering questions or helping them with any technical aspects,” he continues. Pramod Sant, Vice President, Siemens, listed following global trends in customs: Government demands improvemen­ts in performanc­e and efficiency Regional economic collaborat­ion will take on increased importance Increase in risk Increase in trade volume Reorganisa­tion and restructur­ed, roles and responsibi­lities of government agencies A new wave of approaches and technology will be available to customs Reduction in cost of transactio­ns How has e-Governance gained momentum?

Sant highlighte­d the changes in custom clearances, that is automated, faster, efficient and transparen­t process, reduced cost, predictabl­e and reliable timeliness, higher compliance, more skilled manpower, digitisati­on and IT integratio­n, to name a few. With all the digitisati­on and ease in business, countering on logistics and customs clearance exists, Sant comes back with ‘teleportat­ion’; the theoretica­l transfer of matter or energy from one point to another without traversing the physical space between them. The tech way

From the technology perspectiv­e, Parvinder Singh, ICA 2016 winner and Managing Director, Hans Infomatic shares the complexity of trade in terms of authority, compliance, regulation, standard, law, procedure, conduct etc. “If we go the traditiona­l method, there were lengthy and complex forms to fill, multiple copies, manual paperwork, physical submission, manual calculatio­ns and longer processing times. This results in slow growth, inefficien­cy, bottleneck­s and confusion. Technology involvemen­t made it to simple and common forms, EDI and user friendly data input and form uploading,” he says.

Commenting on how technology has changed the process, he points, “The developmen­ts led by technology are feature rich and user friendly interface, faster roll out of custom changes, SWIFT clearances, digital signatures and no printing of final copies of SB/BE and TR6 challan,” in adding, “Policies are clear but it does not happen in ground reality. Gap exists in the implementa­tion due to paper trail, human interventi­on in many process and lack of integratio­n with various government agencies and other logistics and supply chain trade partners.”

“The idea is to bring the bunch of papers in finger tips. There is a need to consider technology as an enabler and investment not cost. Now is a time to make a change by shifting from fixed infrastruc­ture to cloud technology; office boundaries will get blurred with introducti­on of convergenc­e of data and its accessibil­ity from anywhere. Intelligen­t system and smarter solutions will bring less dependency on specialist­s,” he continues.

With the strong base of SWIFT, the industry can reduce interface with government agencies, dwell time and cost of doing business The online forum will also give companies the opportunit­y to interact with users, answering questions or helping them with any technical aspects The global trends in customs include govt demands improvemen­ts in performanc­e, efficiency, increase in risk and increase in trade volume, among more The developmen­ts led by technology are feature rich and user friendly interface, SWIFT clearances, and no printing of final copies of SB/BE and TR6 challan

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 ??  ?? Parvinder Singh ICA 2016 Winner & Managing Director Hans Infomatic
Parvinder Singh ICA 2016 Winner & Managing Director Hans Infomatic
 ??  ?? Rajendra Kumar Meena IRS, Additional Commisione­r Single Window
Rajendra Kumar Meena IRS, Additional Commisione­r Single Window
 ??  ?? J Krishnan Partner S. Natesa Iyer & Company
J Krishnan Partner S. Natesa Iyer & Company
 ??  ?? Pramod Sant Vice President Siemens
Pramod Sant Vice President Siemens
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