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6 Advantages of The Indian Customs EDI Systems

By: Admin In: Trade Last Updated: 2017-09-19

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Computerized Indian Customs EDI System was initiated in 1994-95 by National Informatics Centre and Central Board of Excise and Customs. The aim of Indian Customs EDI Systems is to maintain data confidentiality, safeguard assets and to minimize the errors done in filling, submitting, and processing of all the import/export documents. The five guiding principles that worked as a core-objective for the establishment of this ICES System were Simplification, Accountability, Transparency, Consistency, and Facilitation in the Indian Customs Department and trading community. . The Indian Customs Electronic Data Interchange System ensures that all these objectives are met so that the customs documentation process becomes as smooth and error-free as possible.

The Indian Customs EDI System has brought in a new era of trade in India; an era that encourages paperless trade. With the ICES, the trading community of India does not have to visit the Government Agencies personally as any exchange of documents can be done electronically in a matter of seconds. However, this is not the only advantage of the ICES; there are many more advantages that make ICES an apt and effective system in the Indian Customs.

Saves a Lot of Time
The first and apparently the biggest advantage of including the ICES by the Customs is that it saves a lot of time. The inclusion of the EDI or Electronic Data Interchange system in the Indian Customs services has computerized the entire customs procedure which has resulted in saving of a lot of time. All the processes including the handling of data like the preparation, storage, and delivery of the customs documents have become computerized. In addition to that, any notification can be automatically released through the electronically operated systems in a small time without investing extra time and human efforts. Any type of error or other things related to customs documentation can be quickly communicated to the client through the electronic systems. All in all, the use of ICES system in the Indian Customs has enabled faster trade transactions.

Offers Operational Expertise
The EDI System adopted by the Indian Customs has made the process of Customs documentation fully automated. This automation has provided operational expertise in handling the documents of the clients without any hassle. Being automatic, the clients can submit their declarations anytime which would, in turn, leads to increased productivity. The clearance time is reduced with the ICES System which results in a quicker retrieval of the cargo. Moreover, as everything has become automated and the manual administrative processes have been reduced to a minimum, the chances of making errors or duplications have also reduced in the documentation operations. Lastly, the ICES System has also improved the operations by harmonizing the business relationships with the Ports, Container Depots, Airlines and other bodies.

Responds Quickly
The EDI system was adopted by the Indian Customs department so that it could quickly respond to the queries and needs of the clients. Using the computerized electronic means, the department can quickly respond to any query raised by the importer/exporter without wasting much time. It has also reduced the interactions that a client had to make with the Government agencies time and again by responding to all their queries electronically.

Increases Transparency
Being a computerized means of data interchange, the ICES system has increased the transparency in the trade transactions in the Indian Customs department. All the Customs laws, administrative guidelines, regulations, and other procedures are publicly available on the ICES system. Anyone can easily access the guidelines cannot make the excuse of inaccessible information for undertaking unfair trade. The importers can have a look at the duties and taxes that they have to pay at various steps so that they are not cheated into paying extra bucks as duty or tax by any unscrupulous trader. The availability of information in the ICES system is certainly instrumental in increasing the transparency in trade processes.

Provides High Security
Scheduled audits are practiced within the ICES System to ensure that any data stored in the electronic systems is secure from any online theft, hack or security breach. Strict security has been provided on all levels while accessing the systems to ensure that only the authorized personnel can access any data information. The ICES System also keeps a track of all the transactions made by the user to ensure high security. This increased security, with regular audits, authorized access, and other things, is certainly one of the biggest advantages of the ICES system.

Enhances Data Accuracy
Computerization of the data information not only reduces the chances of making errors but also ensures that these error-free data documents are released quickly. The accuracy of customs documentation is one of the biggest plus points of the Indian Customs EDI System. The chances of erring with the data are reduced thus enhancing the data accuracy. Sending documents as electronic messages minimizes the chances of data capture which ensures that all the data stored in the systems is precise and accurate.

These were some of the main advantages of using the Indian Customs Electronic Data Interchange Systems in the trade documentation process. Other advantages could be the benefits to the customs house brokers and carriers by reducing their manual work and giving them an opportunity to expand and explore the new markets.

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