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April 20, 1999

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Expert panel suggests 82 steps to streamline import/export goods movement

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The Committee on Integrated Approach to Movement of Goods in International Trade has recommended measures involving policy and procedures to streamline the movement of goods to increase efficiency and reduce transaction costs.

The committee has made a total of 82 recommendations covering a wide spectrum of activities connected with exports and imports such as customs, ports, air cargo, ICDS/CFSS, coastal shipping, multi-modal transport, single document for movement, octroi and sales tax, national highways, courier exports/imports and EDI.

The three-member expert committee constituted by the Union commerce ministry presented its report to Commerce Secretary P P Prabhu in New Delhi yesterday.

The committee headed by S Sundar, former secretary, surface transport ministry, comprised B C Rastogi, former chairman, Central Board of Excise and Customs, and V R Mehta, a former official of the Asian Development Bank.

It studied the grievances expressed by trade and industry and a strong demand made by members of the Standing Committee on Promotion of Exports by Sea (SCOPE-shipping), a high-level interaction forum of the government and the trade functioning in the commerce ministry.

One of the reasons for setting up the committee and asking it to evolve an integrated approach to the movement of goods in the course of exports/imports was that the transaction cost of the trade is very high.

There are several agencies and authorities for handling and clearing goods, like customs, excise, octroi, sales tax, ports, airports, transport, and transport service agencies, that come into play at different stages and require different statutory and administrative formalities.

The committee was asked to recommend measures to streamline the movement of goods, increase the efficiency of movement, and streamline procedures, which included studying the feasibility of a single combined document to allow smooth flow of goods.

The recommendations cover the co-ordination and facilitation of various activities connected with exports/imports. The committee felt there is a compelling need to bring about attitudinal changes to facilitate foreign trade, for which it has suggested certain measures.

Another important recommendation is that an authority should be set up by the commerce ministry to regulate the activities of and charges levied by all the service providers engaged in international trade.

The report will be studied by a task force on matters relating to multi-modal transportation of goods set up under the ministry and appropriate recommendations will be made to various ministries.

UNI

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