Lack of standard norms, complex procedures delay imports: CAG

Lack of standard norms for clearance of inbound shipments at ports coupled with complex procedures lead to inordinate delay in imports, government auditor CAG said today.
"It was seen that the procedural complexities and consequent delays in import clearance are of a much higher order than in the case of export clearances.
"No standard benchmark or norms have been prescribed for ships waiting to get berth at ports and time taken during the various stages in the clearance of goods," CAG said.
The performance audit related to 'Import and Export Trade Facilitation through Customs Ports'. It found incomplete facilitation process mapping, weak target setting, inadequate monitoring of the implementation of the recommendations of the task forces and committees on transaction cost have compromised the achievement of envisaged benefits.

The audit observed that though there was a decrease in the dwell time during the period 2010-11 to 2013-14 for clearance of goods, this could be further improved by implementing the trade facilitation measures initiated by Central Board of Excise and Customs(CBEC) more effectively.
Dwell time indicates gap between the time cargo arrives in the port and leaves the premises after all permits and clearances have been obtained.

As much as 70 per cent of the dwell time was attributable to filing of Bills of Entry (BE) and payment process in case of imports while in exports filing of the Export General Manifest (EGM) constituted 90 per cent of the total time.

"These stages caused delay which needed to be addressed to reduce the dwell time and the consequential reduction in transaction cost," CAG said.
According to the Strategic Plan of Department of Commerce (2020), due to poor facilitation, the impact on the transaction cost has been estimated to the tune of Rs 42,000 crore.
CAG pointed out that the main reason for the delay in payment of customs duty by importers was the disagreement on the amount of duty computed by the department or lack of sufficient funds with the importer.
To reduce transaction cost and eliminate delays in clearance of goods at ports, CAG said: "The (Revenue) department may consider reaching out to importers to file error free Bills of Entry, to reduce time delay, allow online amendments to the minor errors in BE, adjustment of excess duty paid due to short landing."

Further, it said, the department may explore possibility of permitting minor amendments to EGM online and allow frequent monitoring of uploading of EGMs by service centres at Inland Container Depots.
It may also examine and address the reasons for non- utilisation of the facility of examination at the factory premises by the exporters, CAG recommended.