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Paperless trade in India

T. A. Khantakhan@nic.in

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Outline

1. Introduction

2. IT growth in India

3. eGovernance initiatives4. eTrade Initiatives

5. eTrade - The Project

6. eTrade - Organisation wise Implementation7. eDocs adaptation in India

8. Achievements

9. Task Ahead

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1. Introduction

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Department of Commerce

Deals with the countrys external trade andall matters connected with it.

Formulates policies in the sphere of foreigntrade.

Exports of merchandise goods

(1995-96) - $31.8 billion(2005-06) - $103.1 billion

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Need for Paperless Trade

Substantial progress on policy front.

Focus required on streamlining andstandardisation of procedures.

Large number of agencies involved in

clearances for international trade.

Increase in exports to eTrade enabled

countries.

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Challenges Multiple entry/exit points and complex

management issues

Cumbersome procedures

Enormous documentation

Need for extensive process re-engineering

Different stages of automation

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Challenges

Different priorities of organisations

Lack of awareness on eTrade Non participation in community systems

Adoption of standards

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2. IT Growth in India

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9

Indian Information Technology (IT) and IT enabled

services (ITES) industry:

- double-digit growth- To exceed USD 36 billion in annual revenue in FY

2005-06 (growth of 28%)

IT-ITES exports from India:

- USD 13.3 billion in FY 2003-04

- USD 18.2 billion in FY 2004-05.

- USD 23.9 billion approx, 2005-06.

IT growth in India

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10

Number of Internet users in India:2004: 25 million

end 2005: 50.6 million

Number of internet subscribers in India: 6.13 million (Jan. 2006)

Broadband subscribers in India: 835,000 (Jan 2006)

Number of internet cafes in India: 105,000 (Nov 2005) Annual growth in cybercafe market in India: 45 % (average over past 5 years)

(Nov 2005)

Estimated value of total e-commerce market: 265 million USD (Jan 2006)

Estimated growth of e-commerce market: 517 million USD by 2006-07

Number of mobile phone users, end of 2005: 76 million

Average new mobile phone connections: around 3 million per month

Government target for mobile phone: 200 million by 2007 subscriptions

Number of total new phone connections: 32 million (mobile + fixed line)

in 2005

Number of fixed telephone line users 2005: 49 million (Jan 2006)

IT growth in India

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On 14 June 2000: Minimum agenda for e-Governance

developed.

GOI approves the National E-Governance Action Plan for

implementation during the year 2003-2007

Mission Mode Projects at the center, state and integrated

service levels to create a citizen-centric and business-

centric environment for governance included.

eGovernance Initiatives

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4 . eTrade Initiatives

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14

Department of Commerce selected as thenodal agency

Process Re-engineering National standards

Education and awareness programs

Pilot projects for private sector eTrade project

Portal for single point interface with all

community partners

trategies

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5. eTrade - the project

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Efficient, transparent, secure electronic delivery of

services by trade regulatory/facilitating agencies.

Simplify procedures and reduce the transaction

cost and time.

Introduce international standards and practices

Objective of the project

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The Indian eTrade Commu

nityDGFT

Customs/Central Excise

Airlines

Shipping Agents

Port/CONCOR

Importers/Exporters

CHAs Indian

Railways

AEPC/Texprocil

DGCIS

RBI

Banks

ICD/CFS

(Income Tax, ECGC, EXIM

Bank, EIC, APEDA,

MPEDA, State/local

authorities) AAI

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1. Customs (35 locations)2. DGFT (33 locations)3. Port Trusts (13 locations)

4. Airports (7 locations)5. Container Corporation (38 locations)6. Banks (106 locations)7. RBI8. Airlines9. Apparel / Textile Export Promotion Councils (24)10. Indian Railways (1)11. Export Promotion Organisations12. DG commercial Intelligence / Statistics

13. Inland Container Depots / Container Freight Stations (50)

Project Spread

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6. eTrade - Organisation wise

Implementation

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Scope

y

Three key areas for implementation electronic filing;

processing of export and import clearances and

Customs duty payments

y Establishment of electronic interface with the

community partners viz. Banks, Airlines, AAI, Sea

Ports and DGFT.

Customs

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CustomsStatus

y ICES operational at 35 locations (Ports - 11, Airports -

8, ICD/ Land Customs - 16).

y Automation covers about 80% of Indias international

trade.

y Standards Messages developed with community

partners.y EC/EDI Gateway (ICEGATE) for e-filing of

documents operational.

y Portal www.icegate.gov.in

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Directorate General of Foreign TradeScope

y Electronic submission and processing of license

and other applications in all the 33 offices of

DGFT.y Electronic interface building with the community

partners viz. exporters, importers, export

promotion organisations,C

ustoms,B

anks,Directorate General of Commercial Intelligence

and Statistics (DGCI&S) and Income Tax.

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Status

y DGFT networkcovering all locations.

y 100% Schemes automated, 90% Licenses

issued under web enabled environment.

y Banks integrated for internet-payment

y Digital signatures integrated

y

Online interface withC

ustomsy Video conferencing launched forLicense

Committees interface with trade and industry.

y License processing time reduced to 6 Hrs. from

30 to 45 days.

DGFT

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Sea PortsScope

y Cargo management system.

y Electronic submission and processing of documentswith the community partners viz. Shipping line,Customs, Customs House Agent, Shipping Agent,Bank, CONCOR.

y

Eleven Ports participating in first phase operations areKolkata, Chennai, Cochin, Tuticorin, Mumbai, JNPT,Goa, New Mangalore, Vizag, Kandla and Paradip.

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Status:y Automation at 11 major ports accounts for 75% of

trade by sea route.

y EDI implemented for interface with customs,shipping lines, agents etc.

y Electronic payments introduced.

y Standard messages developed with community

partners.y Web based single point interface for all ports being

developed.

Sea Ports

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CONCORScope

y Effective and efficient handling of container

and related documents between CONCORand its community partners viz. Customs,

Ports, ICDs, Agents, Banks, Indian Railways,

Exporters and Importers.

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Status:

y Export Terminal Management System

y Linked with Freight Operations Information System

(FOIS) of Indian Railways.

y Web enabled container tracing and tracking system

y Web based community partner interface system

implemented

CONCOR

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AirportsScope

y Cargo management system at all international airports.

y System to adopt tracing and tracking of cargo

y Electronic exchange with community partners viz.

Customs, Airlines, Agents, Exporters, Importers and

Banks .

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AirportsStatus

y Integrated Cargo Management System implemented

y Web enabled community partners interface system

operational

y

Integration of bar code for tracing & tracking of cargo

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Status

y Electronic payment integrated with community partners.y Security issues of banking sector addressed by IDRBT as

CA.y 106 export intensive centres (EICs) can facilitate

electronic transactions.

y Real Time Settlement (RTGS) system implemented.

Banks

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7. UNeDocs Adoption

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y Adoption of Aligned Documentation System based on

UN Layout key in 1990

y SW in 1995 for pre-shipment export documents based on

UN Layout key.

y The migration to United Nations Electronic Trade

Documents.

UNeDocs

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8. Achievements

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y Uniformity and simplification of procedures

y Re-engineered inter agency interfaces

y Standards integration

y Integration of eTrade community through a portal

y Significant reduction in transaction time of services like

license application is disposed in 6 hrs. as compare to 45

days

y Reduction and early detection of frauds

Achievements

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9. Task Ahead

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Custom - DGFT message exchange (earlier scenario)

tep

No.

rocess at Customs rocess at DGFT ser visits

1. Licence applicationreceived

FT

2. License issued FT

3. egistration o licence Customs

4. elease advice ithin Customs Customs

5. Extension ovalidity period olicence

FT

6. egistration o release advice Customs

7. BE/SB assessment Customs

8. pdating o licence register Customs

9. Stamping licence Customs

10. Licence taken backor utilisation

FT

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Custom - DGFT message exchange (re-engineered scenario)tep

No.

rocess at Customs rocess at DGFT ser visits

1. Licence applicationreceivedelectronically

2. License ile sent toCustomselectronically

3. elease advice ithin Customs

4. Extension ovalidity period ilesent to Customselectronically

5. BE/SB assessment Customs

6. Licence utilisation ile, plus BEassessment details sent to FTelectronically

7. er ormmonitoring oncomputer screen

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DGFT et ork

NetWork

Web erver

FT FFICES

r ce n Main erver

NetWork

EX TE

NetWork

NetWorkC ST MS

B NKS

status

Bank eceipts

and B C

Lic. etails

Ship.BillBill o Entry

IEC,BL,LIC,

Eppl

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National Standards

EDIFACT declared as national standard forEDI

Message development groups constituted forCustoms, Ports, Airports, Banking and Private sector

Establishment of Article Numbering & BarCoding Institution

UN/CEFACT recommendations likeSubCommittee on UN/LOCODE

UNLayout key for trade documents etc.

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National Standards

Establishment of Article Numbering & BarCoding Institution

SubCommittee on UN/LOCODE

UN/CEFACT recommendations

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