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Importers who comply with rules will soon be given major incentives by the Government.
This follows the Finance Ministry's in-principle agreement to go in for Mutual Recognition Agreements (MRA) with various countries. The plan will become operational by next year end.
The MRAs will facilitate quicker clearance, hassle-free imports, lower transaction costs as well as increased compliance, Mr S. Dutt Majumdar, Chairman of Central Board of Excise and Customs (CBEC), told Business Line .
“As a first step, we are starting a pilot project for the Authorised Economic Operator (AEO) Programme. Any importer, logistics provider or custom house agent can apply, provided he has a good compliance record in respect of customs and other legal provisions,” said Mr Majumdar.
Applications for the pilot AEO can be filed by September 15. The board will complete the scrutiny by September 30, followed by selection of three pilots within 15 days. After the validation process, including field visits for pilots between October 15 and January 15, 2012, a decision will be taken on granting AEO status by February 15, 2012.
Initially, only importers will be granted AEO status. Later, exporters will be eligible. The AEOs will get preferential treatment in clearance of goods.
“If we take four cargos for physical verification, it will be just one or even none for AEOs,” Mr Majumdar added.
In the next stage, the AEOs will be eligible for benefits under MRAs.
If an AEO importer places an order with a recognised exporter in England, with which India has an MRA. Then as soon as the consignment is ready in England and the exporter submits the invoice and documents to the Customs Department there, all the information will be passed on to its Indian counterparts.
The Indian customs will then process the papers, facilitating quicker clearance once the consignment reaches here.
“Government-to-government mechanism would make it impossible to alter the invoice. This will increase compliance. Quick clearance will help reduce the transaction cost,” claimed Mr Majumdar.
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