Transcript Chennai Airport

Task Force on
Transaction Cost
Airports: Mumbai, Delhi & Chennai
Seaport: Chennai
© Confederation of Indian Industry
Some observations
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Better management of loading and unloading at the port/terminal.
Let Export trucks be allowed 24X7 as it would even out the cargo
clearance at the cargo facility. As of now, extreme rush after 3 PM.
Have one unique identification number for each export consignment
instead of many numbers ( could be shipping bill number ) —like
AWB, MAWB, Carting application etc
Integrate the network systems of the custodian, CFA, DGFT as all
these systems should be talking to each other. This will reduce
duplication of data feeding.
Have one single comprehensive form with the information being
filled up as and when it comes in. This will remove the repetition of
data filling by the PO (Preventive officer) , EO, ( Examination Officer
) , Appraiser
Let it be assembly line seating arrangement for cargo clearance.—
mainly at Mumbai and Chennai facility. In Delhi seating is better
© Confederation of Indian Industry
Contd….
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About 30 % of the export consignments undergo examination at
port. This figure needs to come down which might happen with
RMS.
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Non availability of containers/vessel at the right time and Freight
consolidation by the forwarders takes a lot of time. Thus reduce the
storage free time at the Cargo facility from 72 hours to 24 hours.
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Introduce the Shipping Trade Practices Act. It is still at the Bill stage.
© Confederation of Indian Industry
Some issues:
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The insurance agent needs to be informed within 24 hours of shipment leaving the
factory, otherwise Agent will not pay premium. Billing breakup generated should be
used for insurance purpose.
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At times, the shipping lines give premium to exporters for using their shipping lines, but
the system does not accept “0 “value and the shipping bill is not generated. System
should accept a “0” value if not negative value.
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In classification, advance ruling of customs should be there. Classification of goods
should be done before and not left at the discretion of the officer. For repeat products
there should be self-declaration.
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After physical examination, repacking the consignment an issue .Also the Shipping bill
shows that, “ not opened for physical examination by customs”. The buyer claims
damages.
Suggestion: the official doing physical examination can have a sealing tape with
opened by customs written.
© Confederation of Indian Industry
Some other issues Contd…
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Sample testing--look into number of consignments, sample size, from
factory for sample testing, goes to lab outside the Airport for testing, clarity
of testing authority ( eg wildlife )
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Allied Acts add to Transaction cost big time. Need to look into it
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Once credentials of exporters established , like Status holder exporter then
ease the process
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If the exporter is taking no incentives then for factory stuffed cargo no
examination should be required. Also pelletisation should be allowed at
offsite facility. Also fragile cargo , like fish, flowers should be handled at an
offsite facility.
© Confederation of Indian Industry
Some other issues Contd…
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the time of applying for waiver and transferability redemption, a
certificate by CA is required, even if it is SION based. CA Certificate
should be dispensed with as license is issued by SION basis.
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all Reward Schemes and Export Obligation of Advance
Authorisation and EPCG Schemes, EDI should be established with
customs for shipping bills. The requirement of hard copy of Shipping
bills should be done away with.
When applying for FPS scheme, copy of IE Code has to be attached.
Should be done away with as it is available online
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© Confederation of Indian Industry
Specific Case of Leather Exports:
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1.
2.
3.
When the cargo reaches the Cargo facility, checked by Cargo agent
along with custodian for weight and measurement. If it does not tally
then amendment required to be made. If it is OK then following
documents are required in 6 sets:
Invoice
Packing list
Shipping bill
Following Self Declarations Required which can be done away with
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Leather declaration—Dispense with as it is eligible for drawback for
all leather and leather products whether it is imported leather used or
indigenous finished leather use.
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Cenvat declaration—Dispense with as leather garments and
finished leathers are non cenvatable.
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SDF Declaration—for foreign exchange
© Confederation of Indian Industry
Cont..
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Leather exporters need CLRI report. The Air customs accepts while
the sea cargo does not accept the CLRI report.
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Also finished leather products are held by the customs for 3-4 days
for examination particularly at Sea customs. ( though the EXIM
Policy says that any Export consignment cannot be held for more
than 24 hours )
© Confederation of Indian Industry
DGFT Related issues:
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E-BRC to be accepted by Central excise and Customs also.
RCMC not required
SSI / IEM / Heavy Industries License – Manufacturing Item. The same
need to incorporated in the licence . No need to be so specific
As per Para. 4.7.1 of HBP Gives provision of Rs. 5 cr of import without
Bank Guarantee, whereas customs is not accepting, but they follow
Circular 58/2004-Cus 21.10.04. even in para 2.20 of HBP says that BG
is as per Circular 58/2004-Cus 21.10.04
EPCG- Export Obligation – Block wise ( 4 & 6 yrs) to be re-looked
FMS / FPS ( All types of Incentives) is not accepted by all central
Excise against Excise Duty
No TED - Benefits for who can avail Cenvat Credit. Unnecessary
documents like duty paid certificate and Non availment of cenvat credit
Certificate of Origin to be issued by Govt. department (JDGFT /
Inspection Agencies) without fees
© Confederation of Indian Industry
Port Trust
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At the time of export, Boat - note should not be required. (Tally clerk
already there and Wharfage is paid to the porters)
© Confederation of Indian Industry
Central Excise
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Export Bond should not mention Chapter Classification
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Export Bond Value to be irrespective of Excise Duty
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Clarification of tariff should be to the benefit of exporter or importer
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Time Bound at DGFT – 9.11 of HBP why not at Customs and
central Excise
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Triplicate copy of ARE-1 to be signed by the range Superintendent.
This leads to more paper work and delay in incentives and POE.
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Original and duplicate of A.R.E.1 to be stopped. The document
should be sent online to all other related government departments
© Confederation of Indian Industry
Customs
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Shipping Bill should go online to DGFT / JDGFT
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E.P Copy generation late in customs. Total incentive or Proof of Export
Generation is stopped. This can happen at the time of release of Shipping Bill
itself as in ICD’s
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Insurance Certificate / Freight Certificates should not be required
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Excess Duty Any Commissionerate should accept
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Automatic process in section – 74, SVB- EDD Refund, & DBK (AIR). But not
happening
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Daily duty allocation of customs officials (Exports & Imports)--The rostering can
move to a system generated roster.
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Drawback section of Customs at times asks for same export documents again .
Should be done away with as leads to delay in availing drawbacks.
© Confederation of Indian Industry
Mumbai Airport Waiting Time of 3-4 hours plus (in
truck que and ramp que), due to Manual Ramp
Operations and Lack of IT
Current Process:
Presentation of physical Annexure C document, followed by manual
entry of details into system, and assignment of Examining Officer (EO).
This is followed by manual carting of export cargo into cargo terminal.
Suggested Changes
EDI submission of Annexure C information online with reference to
HAWB and MAWB.
RFID scan enabled entry registration process at terminal ramp. EO
assigned automatically post-scan
Export RMS allows segregation of shipments into those requiring
physical examination and those not at the RFID scan stage. Carting
into separate zones based on this segregation
Mechanical Carting: Mandating Terminal Operator in Major Airports to
use ramp-carts
© Confederation of Indian Industry
Reduction of Transaction Cost in Exports
1. CENTRAL
EXCISE
To Exempt from
Excise Duty from
Factory
S.
Present Required
No.
Documents
1 B1 - Bond
2. CUSTOMS
For Clearance of
Goods
3. PORT TRUST
4. DGFT
To Load Cargo in To Collect Incentive/
Vessel
Redemption
Present Required Present Required Present Required
Documents
Documents
Documents
Export Invoice
Export Invoice
ANF
2 IEC Copy
Packing List
3 RCMC Copy
Shipping Bill
Chartered Engineer
and
CA Certification
Shipping Bill Copy BRC
4 PAN Copy
(i) Exporter Copy
Boat - Note
5 IEM Copy
7 CT - 1
(ii) Exchange Control
Copy
(iii) Export
Promotion Copy
Declaration
8 ARE - 1
Confederation of Indian Industry
Marine© Insurance
6 Export Order Copy
Packing List
EP Copy of Shipping
Bill
RCMC
Documents Sufficient to carry out Transaction
1. CENTRAL
2. CUSTOMS
EXCISE
1 To be linked with Shipping Bill
EDI – Customs
2 B1-Bond, Export Declaration
Order Copy, ARE1
3
All other documents
to be scanned and
sent to Customs
from Central Excise
4
To be linked with
EDI – Central
Excise & DGFT
3. PORT TRUST
4. DGFT
Boat Note not
EC - to be
Required
Compulsory - Online
To be linked with E-BRC
EDI - Customs &
DGFT
Shipping Bill - To
be linked with EDI DGFT from
Customs
RCMC - Not
Required
© Confederation of Indian Industry
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Thank you
© Confederation of Indian Industry