EASE OF DOING BUSINESS

With a view to improve India’s rank on “Ease of Doing Business” rankings listed out

by World Bank, Indian ports have taken a series of steps. In the year 2016,

Government of India had constituted a Committee comprising of M.D., IPA and J.S.

Customs to suggest measures to reduce cost and dwell-time of cargo clearance in

ports with specific reference to JNPT.

The Committee identified 42 recommendations for reduction in cost and dwell time

of exports (20 points) and imports (22 points) at JNPT, Mumbai which is the

earmarked port for ranking by World Bank. List of 42 recommendations is given at

Annexure – I.

Starting with JNPT, other Major ports have also initiated implementation of these

recommendations.

Federation of Indian Export Organisations (FIEO), the apex body of Indian exporters

made 22 additional recommendations. Starting with JNPT, other major ports have

also started implementing these 22 recommendations. List of these

recommendations is given at Annexure – II.

Simultaneously, NITI Aayog has drawn up an agenda on the Port-Eco System. Broad

contours of the proposed Port Eco-System parameters include:

1.Time taken for border compliance in JNPT for containers for both Export and import.

2. Time taken for evacuation of containers by Rail

3. Time taken for documentary compliance – both export and import

To work on the above objectives, NITI Aayog has identified a series of actions to be

completed in a time bound manner.

All member ports of IPA have initiated action on all these areas along with other

agencies such as Customs, Railways, CONCOR, CFS operators, CHAs, Freight

Forwarders etc. The targets of reducing the Dwell Times are being achieved through

simplification of trade processes and increasing the efficiencies in transportation and

container handling of containers at the ports.

A key parameter worked upon is the Import Dwell Time & Export Dwell Time. JNPT

has achieved tremendous improvement in dwell time for Export & Import. Still

further reduction is possible with cooperation other Ministries/departments like

Railways, CONCOR, Partner Government Agencies (PGAs) etc.

Some Specific Initiatives Some specific initiatives taken by the ports to usher in ‘ease of doing business’ may be summarized as follows:

1. Elimination of Manual Forms

Manual Form 13 & 11 have been eliminated at JNPT and a software for web

based e-Forms 13 has been developed, wherein the Customs

authorization/endorsement is obtained online while accepting the containers.

Other Major Ports are also taking action to move in this direction.

2. Direct Port Delivery (DPD)

Direct Port Delivery (DPD) has been introduced by JNPT obviating the need

for transferring imported containers to CFS for obtaining Custom Out of

Charge (OOC). This has resulted in substantial savings for importers and has

also cut down time taken in the process.

Online clearance is given to DPD customers. Similar efforts are on at other ports also.

3. Direct Port Entry (DPE)

Direct Port Entry (DPE) for export containers has resulted in reduction of time

taken in obtaining Customs approval bringing down dwell time and savings in

cost. Nearly 74% of all containers exported through JNPT are now using DPE

route.

Other ports handling container cargo have also initiated similar facility.

4. Container Scanners

Major ports are in the process of installing huge size container scanners so as

to obviate the need for manual examination of individual containers. Already

several scanners are operational at various ports.

5. Radio Frequency Identification (RFID) Radio Frequency Identification (RFID) system is being implemented in all

Major Ports. The RFID will eliminate dual checking of containers, minimize

transaction at the Gate and thereby reduce dwell time and ease congestion.

6. Gate Automation Systems

Gate Automation System has been put in place at all terminals in JNPT

resulting in significant reduction of transaction time at the port gate for

containers.

Similar initiatives are being taken by other ports.

7. Port Community System

The Port Community System (PCS) which provides a single window system for

secure exchange of information through web services / EDI messages with all

the major stakeholders of the port community like shipping agents, shipping

lines, stevedores, Banks, importers/exporters, CONCOR, surveyors and major

regulatory agencies like Indian Customs, MMD, Coast Guard etc. has been

put in place. The system also allows stakeholders to make electronic payment

for the services from the ports.

A newer and advanced version of PCS is under implementation.

8. Integration of PCS, Customs Import General Manifest (IGM) & Terminal

Operating Systems (TOS)

JNPT has successfully integrated Customs Import General Manifest (IGM) EDI

message with JNPT’s Terminal Operating System (TOS), along with Bill of

Entry & Out of Charge messages. Based on EDI messages received from PCS

exchange hub, the process of delivery of Direct Port Delivery (DPD) containers

has been automated.

9. E-Delivery Orders (e-Dos)

All Major Ports are equipped to receive E- Delivery Orders from incoming ships

thereby eliminating the need for physical handling of DOs.

10. Accommodation of Participating Government Agencies

Participating Government Agencies (PGAs) are the allied agencies that are

required to examine and provide clearance to certain types/ categories of

cargo. These include Food Safety & Standards Authority of India (FSSAI),

Controller of Drugs, Animal Quarantine, Plant Quarantine, Wildlife Crime

Control Bureau (WCCB) etc.

Earlier it was taking 24 to 72 hours for importers and exporters to get

clearances from these PGAs. JNPT has allotted office space/ land to all the

PGAs resulting in saving of minimum 24 hours in drawing of sample.

Similar steps are being taken by other Major Ports also.

11. Helpline Facilities

Major Ports have taken an initiative to establish Call Centres that shall become first point of contact for all general queries and support services related to trade at the port. Phone numbers of Call Centres are displayed on the websites of respective

ports.

Annexure – I

Measures Initiated to Reduce Cost & Dwell-Time of Cargo Clearance in Ports

Measures Recommended on Export side

S.No Key Recommendations Stakeholders

1 Give advance notice of shutdown of gate terminal JNPT/Terminal Operators

2 Joint Traffic Management Squad may be constituted with the representatives of all stakeholders

All stakeholders

3 CISF need not check the container seals at JNPCT entry gate CISF/JNPT

4 Gate CCTV feeds to be made available to Customs JNPT/All terminals

5 Ensure Customs officers presence in each lane as temporary measure until all clearances are carried out at in the parking lot

Customs

6 Terminal Operator to convert Parking lots to Processing areas

and provide cabins and internet connectivity for Customs officials. Custom clearance procedures for factory stuffed containers to commence in parking lots.

Terminal Operators

Customs

7 Expand scope of direct port entry to factory stuffed containers Customs

8 Presence of Customs officers and officials from Terminal Operators at the Entry gate should be done away

Customs

9 Develop gate in Vehicle Booking System in the Port Community System

IPA

10 Eliminate mate receipts for containerized cargo Customs

11 Simplify Port Clearance for Vessels DG Shipping Ministry of Shipping

12 Upgrading connectivity between ICEGATE and PCS-

Switchover to web services / queue to queue systems to

ensure real time message transfer

DG (Systems)

CBEC

IPA

13 RFID project in Chennai or similar system may replicated in

JNPT

JNPT

14 Integration of Customs, Port Community and Terminal

Systems at the gate

Task Force

DG (Systems)

CBEC

15 Bring down the gate window time from 5 to 4 days and then

to 3 days

Terminal Operators

16 Increase RTGC drivers and RTGC equipment within the

terminal

Terminal Operators

17 Provide additional land to private terminals, based on

requirement

JNPT

18 Usage of electronic seals in place of bottle seals should be

encouraged

Customs

19 Eliminate ARE-1 for manufacturer exporters Customs

20 Develop Centralized Parking Plaza with modern facilities and

requisite amenities and convert it into Document Processing

Area

JNPT

Measures Recommended on Import side

S.No Key Recommendations Stakeholders 1 A special DPD Cell to be constituted by Customs which will

provide services 24/7 and to handle issues relating to normal

clearances of DPD Containers

Customs

2 Customs should ensure that there is no delay in generating

SMTP messages for movement of cargo from gateway port to

ICDs

Customs

3 Simultaneous Rake inspection while loading the Rakes Railways/ CONCOR

4 Advancing attachment engines and rationalize short haul rake pricing-reducing minimum freight slab to 25 kms from 50 kms

Railways/ CONCOR

5 Rail freight to be reduced to match road freight to promote rail

movement

Railways

6 Exploring introduction of mobile wallets for payment of

Customs duty 24x7

Customs

7 Increase the volumes of Direct Port Delivery Customs

8 Customs to mandate advance filing of import declarations and

advance payment of duties

Customs

9 Animal Quarantine and Textile Committee may take land

within JNPT immediately and set up their offices

AQIS and Textile

Committee

10 Customs should advance the process of entry inward and

initiate the process on receipt of pilot boarding message from

Port Community System

Customs and IPA

11 Simplify and streamline the amendment procedure for Import

General Manifest (IGM)

Customs

12 CFS should compute average cargo dwell time and provide it

to Customs who would display the same on their website

Customs and CFSs

13 Customs should generate Rotation number electronically

through the ICEGATE system

Customs and IPA

14 Provision of additional land to Terminals if required and

earmarked area for DPD inspection

JNPT

15 Customs EDI system should be inter-connected with Port

Community System and Terminal Operator System

Task Force

DG(Systems)CBEC

16 At the exit gate, only those containers which are cleared by

Customs for movement to factory in case of DPD, movement

to ICDs, CFSs, SEZ should be populated at the gate for

permitting exit from Terminal. Subject to aforesaid condition

Customs may shift to yard from exit gate.

Customs, IPA and

Terminal Operators

17 Modifying method of computation of stamp duty on import

containers

Maharashtra state

Government

18 Customs may shift from Exit gate to yard and only those EIRs

approved by Customs to be cleared at the EXIT gate

Customs

19 All Shipping Lines should be mandated to issue e-delivery

orders and advance invoices

Customs and JNPT

20 Providing hand held devices to customs Preventive Office and

Superintendent

Customs

21 Direct delivery of all facilitated cargo without routing it

through any CFS.

JNPT and Customs

22 JNPT should appoint common rail yard operator and create a

common rail yard

JNPT