45-day trial to take place at 12 gateways
In a move calculated to lower transaction costs for the ex-im trade, the Revenue Department of the Finance Ministry has decided that Customs authorities will clear export consignments all 24 hours at Major Ports from July 15.With this objective, there will be a trial period of 45 days at the ports of Visakhapatnam, Kolkata, Mundra, Okha, Sikka, New Mangalore, JNP, Mumbai, Paradip, Gopalpur, Ennore and Chennai, a Revenue Department official explained.
This move was strongly recommended by a Task Force of the Commerce Department which identified 14 Customs clearance locations for the purpose. "This recommendation has been accepted by the government," the Revenue Department official added. A communication to the Chief Commissioners of Customs has been made to this effect.
Shipments by sea account for around 80 per cent of the country’s global trade. During the 45-day trial period, Customs services would be available all 24 hours to ensure delivery of export goods and imports under the risk management system (RMS), besides assessment and examination of import and export goods.
"...Based upon the success achieved, subject to getting additional staff sanction and custodians, banks and other related agencies agreeing to provide necessary complementary services, a decision will be taken by the board to expand the services to other Customs locations," the letter to the Chief Customs Commissioners stated.
Reacting to the move, the Federation of Indian Export Organisations (Fieo) Director-General, Mr Ajay Sahai, said it would certainly reduce transaction costs as also curtail pilferage and wastage. "Unlike airports, where Customs clearance is fast, the waiting period at the country’s seaports is around two three days," he pointed out. Quoting World Bank data, Mr Sahai said the cost of exports went up by 0.5 per cent for every day that the consignments took to get Customs clearance. Incidentally, the government recently approved 475 new posts in various grades for the Customs Department to facilitate 24-hour operations. This was part of the Ministry of Finance’s decision taken in 2007 to create 4,647 additional posts to enhance operational efficiency.
Source: Exim News Service, New Delhi, 08 July 2010