By TIOL News Service

NEW DELHI, MAR 08, 2017: TALKING about the ratification of the WTO pact - TFA, the CBEC Chairman, Mr Najib Shah, today said that India was in a strong position to ratify several articles in category A within the agreement. The Chairman recognized that it is essential to increase compliance in order to reduce delays and costs and further simplify the process for traders. CBEC values all stakeholders as partners and in this regard, it has put in place reforms such as integrated risk based system and procedures to expedite clearance of cargo, he added.

He also encouraged traders to achieve AEO status as they will assist in accelerating trade in its entirety. The Chairman appreciated CII’s contribution in bringing together industry members and government officials on this important subject, thereby fostering an open environment for dialogue and preparedness for better implementation of various provision of TFA.

Dr. John Joseph, Chief Commissioner, Customs, Mumbai, in his address mentioned about the Direct Port Delivery (DPD) not being used extensively by the importers which offers significant cost advantages to actual beneficiaries. DPD is estimated to save the importers around six to ten thousand rupees per container, yet they are apprehensive to opt for the system. A major concern that came out was the practice of charging for DPD facility by shipping lines and ports, which has mitigated its very purpose, added he.

He also highlighted the sharp reduction in dwell time at JNPT which has been reduced to 5 days and 90% of the cargo handled gets cleared within 24 hours. He mentioned that automatic entry inwards, pre-filing bill of entry, direct port delivery, and AEO are few of the government initiatives that would help to reduce clearance time significantly. He further suggested the adoption of ‘No – Use Bond’ which allows an importer to clear his goods and take them to the factory before the test results are published.

Dr. Jayant Dasgupta, Former Ambassador, WTO mentioned poor logistics as the main bottleneck of growth in the trade sector and said that in order to make India trade competitive, there is an urgent need to “clean up our house” and provide facilities at par with global standards.