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Exporters may be relieved from filing loads of documents as the Directorate General of Foreign Trade (DGFT) is working on a “trust-based system” to reduce huge paperwork and transaction costs involved. Exporters need to file a number of papers to avail themselves of benefits from schemes such as redemption of advanced authorisation licences.
The trust-based system will “significantly” reduce paper work and help in quick completion of work. Any breach of trust will attract huge penalties, according to Dr Anup K. Pujari, Director-General of Foreign Trade.
An exporter should be allowed to self-declare while filing documents and get it certified from a Chartered Accountant familiar with the system.
The system will “significantly” reduce the transaction cost and time to file the documents, he told newspersons.
“We are working on the system and hopefully something will come up soon. Exporters should move such a trust-based system. This is possible if we all work together,” he said on the sidelines of an interactive session on export scenario organised by the Federation of Indian Export Organisations.
Mr Jyotiraditya Scindia, Minister of State for Commerce and Industry, heading the Task Force Report on the Transaction Costs is expected to give the report soon. “I cannot go in to the details,” he said.
Mr Scindia last year in a seminar said, the Task Force has monetised transaction costs worth $12-15 billion, roughly 7-10 per cent of exports and even if 30 per cent of these costs are reduced, the exporting community would largely benefit.
According to Dr Pujari, over the years most of the shipping bills are transferred electronically with the DGFT. This can be shared with various other departments, including the Customs.
Mr Ramu S. Deora, President, FIEO, said for every shipment exporters were signing bonds with various departments such as Customs, Central Excise, Service Tax and DGFT. Since all authorities are now on Electronic Data Interchange, they should take only a single bond, which will benefit them as well as exporters.
“Exporters are filing thousands of documents to various departments,” he said.
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