Risk management system for export of goods from India
IT based risk management system (RMS) for export of Goods from India was launched today.
Speaking on the occasion Finance Minister said that RMS is a trust based IT system that expects the trade to make correct declarations to Customs. It is a trade facilitation measure which, on implementation, would reduce dwell time from few days to few hours. In view of its obvious advantages, RMS is also being endorsed globally at all forums including WTO.
Finance Minister also emphasized that success of any trade facilitation measure depends on compliance of legal requirements by trade. He urged the trade to comply with the legal provisions so that Customs can ensure speedy clearance of the import and export goods.
The launch of RMS in exports today covers 11 Customs stations at Bangalore, Chennai, Delhi, Hyderabad, Mumbai, Pune and Tutocorin. It would be extended to all EDI Customs stations by year end. Benefits are expected to accrue to the trade in terms of faster clearances and reduced transaction costs thereby enhancing the global competitiveness of our export goods.
Similar RMS is already there for import clearance of goods. For exports of goods, RMS was missing. This is a gap that needed to be filled. Kudos. Two points to be noted.
One, RMS ensures that goods are randomly picked up by the computer software for physical inspection. The picking up is not totally random. It is based on certain criteria which assigns a risk weight leading to selection for inspection. For example, a new exporter might be picked up with higher probability for physical verification of goods; when compared to a regular exporter. Currently, goods are picked up for inspection based on assessing officer's wish, which is not very scientific (difficult to rule out gut feel, hence I can't call it unscientific).
Two, RMS needs a huge database to operate. For example, for imports, the valuation of goods is picked up by RMS software based on all India level database. A significant deviation leads to re-valuation of goods or physical inspection.
Overall, RMS makes clearance of export goods faster and more scientific.