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Friday, September 21, 2012

The transaction cost in imports and exports in India is around 15 per cent of the cost of the goods


1.       Study on Trade Facilitation Gap Analysis for Border Clearance Procedures in India, undertaken on behalf of the Centre for WTO Studies, Indian Institute of Foreign Trade, New Delhi, and supported by Ministry of Commerce, Govt. of India,
Some estimates suggest that the transaction cost in imports and exports in India is around 15 per cent of the cost of the goods.

 If the time taken for clearance of import and export cargo can be brought down by 5 days from the present 10 days, there will be significant savings for the economy as a whole.

This is only to highlight the importance of Trade Facilitation to the economy. Further, competition in the international market place is getting more and more intense and unless India incrementally improves the efficiency in expediting the flow of goods at minimum time and cost, its competitiveness in international market would continue to be adversely affected

 That consignment of ACP clients would be considered as low risk and normally such import consignments of ACP clients will not be subjected to examination.

A more liberal view in respect of imports by those qualified under Accredited Client Programme (ACP) should be adopted.

Delay in the transportation of containers  to CFS  due to  monopoly of the Shipping Agents ,even , the Commissioner of Customs, Chennai had issued a public notice permitting the importers/CHAs to move the containers from the Terminal to the CFS but the Shipping Agents filed a writ petition against the  Public Notice and obtained a Stay Order from the Hon‟ble High Court.

 The system of stacking the containers, lack of adequate labour and equipment and the shortage of officers contribute to the delay in the examination
It is important to remember that today, the attempt is to create an environment of trade facilitation. There is a need for a shift in the focus from penal provisions to facilitation measures. This need not mean that violations of the law should be overlooked A more liberal view in respect of imports by those qualified under Accredited Client Programme (ACP) should be adopted”.

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