World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio



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Reply: The FDI policy, inter alia, takes into account national priorities and sensitivities, in the context of India's developmental goals.

Ecuador 3:

III. TRADE POLICIES AND PRACTICES BY MEASURE

(1) Introduction

According to the report, India has introduced ''an electronic system for customs clearance''.

Did India receive any cooperation in applying this new system, and if so, what did that cooperation consist of and who received it?

Reply: Indian Customs launched the Indian Customs EDI System (ICES) in 1995, as an automated work flow system for clearance of import and export consignments. The key drivers for this were the need for handling larger volumes of international trade, lowering transaction costs, quicker turnaround times for cargo and efficient information sharing with Customs community partners. A Remote EDI System (RES) was also provided to enable remote filing of import and export documents from business premises of users. Following the centralized IT implementation, the architecture of the earlier ICES application version 1.0 has been modified and the new application ICES 1.5 now runs on an upgraded centralized platform, with strengthened security features. Any company can use the EDI system as long as they register and obtain the import export code (IEC) from the Ministry of Commerce.

Similarly, in 2005 India introduced a risk management system (RMS) as a measure of trade facilitation to selectively screen only high and medium risk cargo, for customs examination.

In addition to EDI and Risk Management System, the other IT initiatives viz. Accredited Clients Program (ACP) and e-payment facility have further reduced the customs clearance time.


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