Ease of doing business Current Affairs - 2020
Central Board of Indirect Taxes and Customs (CBIC), India’s nodal national agency responsible for administering Central Excise, Service Tax, Customs, GST, & Narcotics has launched a revamped and streamlined programme to attract investments into India and strengthen Make in India through manufacture and other operations. The programme is launched under bond scheme of Customs Act, 1962 as this section enables conduct of manufacture and other operations in a customs bonded warehouse.
Moreover, CBIC in collaboration with Invest India has launched a dedicated microsite [https://www.investindia.gov.in/bonded-manufacturing>] for providing information as well as promoting scheme and for facilitation of investors.
Key Highlights of Scheme
It prescribes a single application cum approval form for uniformity of practice.
Jurisdictional Commissioner of Customs will function as a single point of approval to set up and oversee operations of such units. Moreover, there is no geographical limitation on where such units can be set up.
The unit can import goods (both inputs as well as capital goods) under a customs duty deferment program and the duties are fully remitted if processed goods are exported.
The units will benefit through improved liquidity as there will be no interest liability.
GST compliant goods can be procured from domestic market for use in manufacture and other operations in a section 65 unit.
A single digital account has been prescribed for ease of doing business and easy compliance.
The Scheme has been modernized with simplified compliance requirements Information and Communication Technology (ICT)-based documentation, clear and transparent procedures and account keeping, by issue of Manufacture and Other Operations in Warehouse Regulations 2019.
Significance: Scheme will also enable efficient capacity utilization, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market. It is expected to play a critical role in promoting investments in India and in enhancing ease of doing business (EDB). It can provide impetus to Make in India programme by encouraging exports, creating hubs for electronics assembly, repairing/refurbishing operations, inward/outward processing, facilitating global e-commerce hubs among others.
Tags: CBIC • Central Board of Indirect Taxes and Customs • Customs Act 1962 • Ease of doing business • Make in India
Department of Revenue, under Union Ministry of Finance, is conducting India’s 1st National Time Release Study (TRS) for enabling faster movement of cargo across borders to benefit traders. TRS is an internationally recognized tool advocated by Brussels based World Customs Organization (WCO) to measure efficiency and effectiveness of international trade flows.
National Time Release Study
It is an initiative for accountable governance that will measure rule based and procedural bottlenecks including physical touchpoints in clearance of goods, from time of arrival until physical release of cargo. It is part of India’s strategic commitment to improve global trade will be conducted between 1- 7 August 2019. However, from now onwards exercise will be institutionalized on an annual basis, during same period every year.
Objective: To identify and address bottlenecks in trade flow process. To take corresponding policy and operational measures required to improve effectiveness and efficiency of border procedures, without compromising efficient trade control.
Expected Beneficiaries: will be export oriented industries and MSMEs (Micro, Small & Medium Enterprises) who will enjoy greater standardization of Indian processes with comparable international standards.
Earlier individual customs formations had been independently conducting TRS studies at port level. However National TRS have evolved a uniform, multi-dimensional methodology which measures regulatory and logistics aspects of cargo clearance process and establishes average release time for goods.
National TRS will have standardized operations and procedures across all ports and will also establish baseline performance measurement. Exercise will be conducted at same time across 15 ports including sea, air, land and dry ports which together accounts for 81% of total Bills of Entries for import and 67% of Shipping Bills for export filed within India.
Based on results of TRS, government agencies associated with cross border trade will be able to diagnose existing and potential bottlenecks which act as barriers to free flow of trade and thus enabling them to take remedial actions for reducing cargo release time. The initiative is on ground lead by Central Board of Indirect Tax and Customs (CBIC).
This initiative will help India maintain upward trajectory on Ease of Doing Business (EDB), particularly on Trading Across Borders indicator which measures efficiency of cross border trade ecosystem (i.e. time and cost associated with logistical process of exporting and importing goods every year). In 2018 India’s ranking on indicator improved from 146 to 80.