The World Customs Organization (WCO), Brussels, had convened a Week-long Seminar of the Countries of Asia-Pacific Region from 04th to 08th October 2004 in Manila, Philippines on Simplification, Harmonization of Customs Procedures. The basic objective of the Seminar was to sensitize and promote Facilitation, Modernization and Harmonization of Customs Procedures in Administration of these Countries as per provisions of Revised Kyoto Convention 1999. Major Participants in the Seminar were from China, Japan, India, Pakistan, New Zealand. Representatives from other Countries like Iran, Cambodia, Thailand, Myanmar, Vietnam, Malaysia, Indonesia, Nepal, Bhutan, Fiji, Brunei, Maldives, Mongolia, Papa New Guinea and Samoa also participated in the Seminar. Philippines was, of course, the Host Country. The two WCO Experts from Brussels were there to introduce the subject – Revised Kyoto Convention, its detailed provisions. They also gave an overview of “Customs in 21st Century” and the New Concepts of “Integrated Supply Chain Management” i.e. Origin to Destination Management by Customs and “Integrated Border Management” i.e. Coordinated Customs Control and Single Window Clearance by Customs – Administrations across the Border.

It was a rare opportunity for me to represent India and Indian Customs in this Seminar and to share the details of strides made in India in the last decade in modernizing and streamlining the Customs Procedures. After giving a brief account of its great Ancient Cultural Heritage of 5000 years, its large population, large geographical contours, it was shared with the participants as to how India was no more a land of Naked Sadhus, Snakes and Magicians, but a Vibrant, Modern Sovereign State – World’s largest Democracy based on Universal Adult Franchise; one of the fastest growing Economies of the World, set to capture 2% of the World Trade by 2009. It was emphasized that India had the distinction of having a very Strong, Independent, Judiciary and a Free Press.

It was informed that India had already complied with most of the Provisions of Revised Kyoto Convention and had advanced much ahead of many countries in so far as the 4 cardinal principles of Modern Customs Administration – Predictability, Transparency, Legal Processes and Use of Information Technology were concerned. Indian Customs has Systematic and detailed set of Provisions contained in the Customs Act, 1962, Rules, Regulations, Instructions and a 8 Digit Tariff, ensuring the Predictability of the duty liability and the processes for the Importers, Exporters, Passengers and movement of goods across the Borders. Indian Customs has also a Transparent System of dissemination of detailed information to all concerned on the Customs Law & Procedure–through the CBEC Website having around 25000 pages of information, in addition to the Websites of Individual Customs Houses; Documents Status Tracking Facility through SMS, Touch Screen Kiosks and Interactive Voice Response (IVRS). All Apex Trade Bodies such as FICCI, CII, FIEO have regular interaction with the Custom Houses at the level of Chief Commissioners and Commissioners of Customs, where the latest trends in Customs Procedures are discussed and views exchanged for cutting delays and simplifying the Procedures on a day-to-day basis.

It was informed to the Participants that India has a very Strong Quasi-Judicial and Judicial System where there is well established System of passing Speaking Adjudication Orders, wherever the Assessee don’t agree with the Department’s decision. There is also a well-established System of Appellate remedy by way of appeals to Commissioner (Appeals), CESTAT (Customs, Excise & Service Tax Appellate Tribunal) apart from the Judicial Intervention of High Courts and finally, the Supreme Court.

The 4th Pillar of a good Customs Administration is the use of Information Technology. It was informed in the Seminar that India has all the Major 35 Customs locations on E.D.I. All major Custom Houses, Air Cargo Complexes, ICDs/CFSs are on the E.D.I. Over 98% of all Import / Export Documents are processed on Electronic Data Interchange. Indian Customs has also in place the facility of enabling the Trade to file their Documents-Import/Export Documents, Import /Export General Manifest Electronically through ICEGATE (Indian Customs and Excise Gateway). The Facility is free to all users and available 24 Hours X 365 Days. It gives an instant acknowledgement of the Import / Export Documents to the declarant and generates the Documents No. i.e. Bill of Entry No. or Shipping Bill No. for each Declaration.

Last, but not least the participants were informed about the Risk management System (RMS), which would be operational in India within a couple of months where accredited Importers / Exporters will be get the benefit of Self-assessment/clearance of goods, without any intervention of the Customs Officers. There would be no assessment by the Appraising Officers and no Physical Examination (except Random Examination). The goods will be cleared like a shot within a few hours time. Post Clearance Audit of the transactions will be done later on. Consignments of non-accredited clients will be cleared on Risk based Scientific Parameters.

Indian Presentation got a wide acclaim among all Participants, particularly from Japan, China and Pakistan. In fact the W.C.O. Experts wondered as to why with these latest developments in place, India has not yet signed the Revised Kyoto Convention. It was a great joy to see the respect and admiration with which all the countries of Asia-Pacific Region look at India.

It is true that Indian Customs has moved miles ahead to modernize its Clearance System. However, a lot is yet to be done as the dwell-time for Import/Export Consignments are still much longer than those of the International Norms. It is hoped that with the implementation of Risk Management Module early in 2005, there will be a paradigm shift in the Customs Clearance Procedures, resulting into tremendous gain to the Importers/Exporters by way of reduced Transaction Costs/Time. This is bound to result in an all round gain to the Economy and a much better image of the Department in the eyes of the Business Community and the Public at large.