The Hindu Business Line : Speedy customs link through EDI sought

MR P.K. Mohanty, Joint Secretary (Drawback), Department of Revenue, Ministry of Finance, has sought speedy customs connectivity on the EDI (Electronic Data Interchange) platform with all stakeholders, in line with global practices, to bring down transaction costs for exporters.

He, however, conceded there was a problem of implementation at the ground level.

Addressing an open house on `Foreign Trade Policy and Customs and Central Excise', organised jointly by FIEO (Federation of Indian Export Organisations) and Capexil here recently, Mr Mohanty said nearly 90 per cent of the country's import-export was now being conducted through the ICEGATE (Electronic Gateway) project of Indian Customs.

Admitting that transaction costs for the trade can be effectively reduced through simplification of customs procedures, he sought fresh inputs from exporters for bringing in improvements, considering that Indian exports is far below its true potential.

Interacting with exporters, Mr Subrata Basu, Chief Commissioner of Customs, Kolkata, called for greater interface between the government and the industry, especially to establish trust.

According to Mr Manoj Kumar, Jt DGFT, Kolkata and Development Commissioner, Falta EPZ, a better deal from the policy-makers can be expected only if the export sector works towards towards greater employment generation, particularly through value-addition.

Industrial growth and employment generation have to go hand in hand to ensure that benefits flow to exporters.

Cautioning the trade about further hardening of the rupee vis-à-vis international currencies, Mr Kumar said exchange rate management might prove to be a tricky affair for Indian exporters in the near future.

Drawback delays, white shipping Bills, which lack DEPB rates, and drawing of samples by Customs were some of the issues discussed at the open house.

The clarificatory issues discussed related to DEPB claims, the Target Plus Scheme, the issue of duty-free credit entitlement certificate, advance licences and the applications with regard to the Vishesh Krishi Upaj Yojana.

The detailed Upaj Yojana policy is still awaited. Exporters, particularly of marine products, say they cannot proceed further with regard to import of machineries in the absence of detailed guidelines.

While procedural guidelines for the policy have been notified, exporters said the flexibility to obtain duty credit certificates was still not feasible, as one consolidated application for exports has to be made.

According to F. Ahmed & Co, a leading exporter of agri commodities (including vegetables) to Bangladesh, a single consolidated application is not possible as exports are being made through different ports and documents are in huge volumes.

It is suggested that fresh guidelines may be issued allowing exporters to apply for duty credit on a quarterly/half yearly basis.

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Speedy customs link through EDI sought