NEW DELHI: In a move that will bring down transaction costs and make life simpler for exporters, the government is planning to operationalise a system through which banks will directly post data on payments received in exporters' accounts for their shipments on the server of the directorate general of foreign trade.
Exporters will no more have to run around for bank realisation certificates or BRCs--an important document needed for claiming all export incentives and other benefits-- and present it physically to the DGFT. They can access the BRCs online and file their claims.
"A lot of work has gone into the initiative and we are almost ready to start operations . It may look like a small step, but it is a quantum jump in the way we do business ," a government official told ET. The initiative is likely to be announced by commerce and industry minister Anand Sharma as part of the annual foreign trade policy later this month.
The customs department already sends information on shipping bills filed by exporters while sending their shipments online to the DGFT. "Once the BRCs are also available on-line , an exporter can pull out both shipping bills and the BRCs and submit it together with their code number for all their dealings with the DGFT," the official explained.
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DGFT has already run pilot projects and had extensive discussions with banks to ensure smooth functioning. Exporters and importers spend about $13 billion every year on transaction related costs of which about $6-7 billion are `` addressable'' , according to minister of state for commerce and industry Jyotiraditya Scindia who led a commerce ministry initiative to identify and implement ways to reduce transaction costs.
Exporters incur transaction costs not only in transportation of goods to various destinations and dealing with banks, but also in complying with various laws and procedures, besides meeting onerous documentation requirements. As many as 23 issues including round the clock custom clearance at key ports, rationalisation of penal interest rates, service tax refund and better EDI facilitation are being addressed.
"This year's FTP will have more such initiatives which will lead to a significant drop in costs and efforts put in by exporters to do business," the official said. India hopes to achieve $300 billion of export this year against $246 billion in 2010-11 , despite the uncertain global market.
Source : economictimes.indiatimes.com