Analysis of dwelltime shipment & trade facilitation in india

Analysis of Dwell Time of Shipment and Trade Facilitation

in India

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Agenda

Problem Statement. Objective of the dissertation. Trade facilitation-Introduction and Importance. Steps on Commerce Facilitation-India. Process of Import. Process of Export. Recommendations.

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Problem Statement

• Some analysts concluded that about 15% of the value of goods in the import and export value of the transaction in the Indian side.

• Dwell time analysis conducted by the General Administration of Customs means that the average time span of imported goods, customs clearance in India is 10 days after their land.

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Agenda


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Objective

• Analysis of trade gaps in export and import of the shipments in context with India.

• The view of stakeholders for the technological schemes provided by government of India for trade facilitation.

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Agenda


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Trade Facilitation-Introduction

• “further expediting the movement, release and clearance of goods, including goods in transit.”- Doha Ministerial Declaration.

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Time/Value Consuming Procedures.

Inconvenient procedures

OptimizationCountry

ACountry

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Trade Facilitation-Importance

• Shortening of waiting time for goods in transit, customs release and clearance

• Reduction of trade transaction costs for traders.

• Improved revenue collection and effectiveness of border controls

• A more transparent and efficient regulatory climate for investors

• Improvement of efficiency morale and integrity of customs agencies• Improved relations between authorities involved in border control related

activities and the business/trading community

• Better functioning of public agencies and a more reliable basis for implementation of government policy

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Agenda


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Steps on Commerce Facilitation-India

• Rebate in tax.• Indian Customs E.D.I. system (ICES)-199• electronic trade portal, ICEGATE (Indian Customs and Excise

Gateway) 2002.• Risk Management System 2005.• Scanners.• National Import Database • Post Clearance Audit Scheme• Handling 0f Cargo in Cust0ms Domain Regulations(2009)

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Agenda


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MBA Port & Shipping Management

Process of Import Under Study

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Filing the Manifest

Intimation of Arrival

Delivery Order

Shifting of Cargo to CFS/ Warehouse

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Customs Examination and out of Charge

The Initial Phase The Clearance Procedure


Analysis under Process of Imports

• Filing of Bills of Entry

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Delivery orders • Delivery order takes almost one full working day after fulfillment

of all mentioned payments and procedures• The method of issuing D/O is a complicated one for no apparent

reasons

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Shifting of Cargo to CFS/ Warehouse 60% of container are shifted in ½ day, rest takes more then one

day. Non Uniform Pattern Major Reasons:

» Congestion at the out bound road » Delay due to scanning of container » Scarcity of transport » Congestion at the Port Gate » Scarcity of equipments » Absence/scarcity of labour» Non receipt of documents

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Assessment Procedures Registration of the Bills called “noting‟ of Bills of Entry.

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Queries because of

Percentage

Documentation 30 %

Exemption 30 %

Valuation 20 %

Licensing 10 %

CVD 10 %


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Placing of shipping Bill ;72% are filled electronically

Examination

Drawback



Agenda


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Analysis under Process of Exports

Examination

• Factors which cause delay in examination and stuffing are:» Scarcity of customs officers.» Scarcity of labour » Scarcity of equipments

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Analysis under Process of Exports

Drawback:• About 34 % of shipping Bills are filed under drawback claims.• disbursal of draw back claims take by 1 day to 40 days depending

upon nature of claims

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Agenda


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Recommendations

• Provide certain incentives for placing Advance Bills of Entry(B/E) such as priority in assessment, permit adjustment of responsibility paid in advance for a shipment that has not arrived for Another subsequent shipment.

• CHAs/Consignees must file Bills of Entry at least on landing of

cargo – some disincentives may be introduced to discourage late placing of Bills of Entry

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Recommendations

• Modernize IT infrastructure so that software problems do not occur frequently-Corrections in Manifest should automatically be reflected in Bills of Entry already filed.

• Shipping Agents to streamline approach of issuing Delivery order and preferably it should be made available to importer / CHA electronically.

• Congestion at exit gate and port roads need to be reduced by

improving infrastructure and human resource

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Analysis of dwelltime shipment & trade facilitation in india

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