In order to boost global trade by weeding out bottlenecks in the clearance of goods at ports, the Department of Revenue is conducting India’s first national Time Release Study (TRS) -- a unique tool to “measure the actual time required from the arrival of goods to their physical release."
In order to boost global trade by weeding out bottlenecks in the clearance of goods at ports, the Department of Revenue is conducting India’s first national Time Release Study (TRS) — a unique tool for countries to “measure the actual time required from the arrival of goods to their physical release; assess the efficiency and effectiveness of each actor in the flow process of cargo; identify bottlenecks, identify opportunities for border management improvement etc.,” according to World Customs Organisation. The study’s “expected beneficiaries will be export-oriented industries and MSMEs,” Ministry of Finance said in a statement today to help them with “greater standardization of Indian processes with comparable international standards.”
“This will help in saving money, hence the impact on MSMEs will be more even as it will benefit all exporters. For ensuring my goods, I ask the insurance company for let’s say 15 days cover if I ship my goods on the first day of the month that gets loaded in cargo ship by the 15th of the month. Now I can say that I need insurance for only 10 days because exposure for this was 10 days whether goods were in the warehouse of the transporter or somewhere else,” Vishwanath, Chairman, MSMEs Committee, PHD Chamber and MD, Nath Bros Exim International told Financial Express Online.
“Mass clearance means your dwelling time reduces. When that reduces certainly the value remains the same, the item remains the same, but the premium comes down. My turnaround of money will be very fast and the customer will get the good faster and I can ship the good with a shorter delivery,” said Vishwanath adding that each port has done their own studies and hence there are a lot of variations. So TRS is basically to make a uniform system, which is a great thing, that will make custom authorities more efficient.
TRS will be conducted annually during the same period across 15 ports including sea, air, land and dry ports which cumulatively account for 81 per cent of total bills of entries for import and 67 per cent of shipping bills for export filed within India, the government said. Based on this, existing and potential challenges will be diagnosed by the government agencies linked with cross border trade to boost the free flow of trade and act accordingly to cut down the cargo release time.