Audit Reports
Indirect Tax
Report No. 13 of 2015 - Performance Audit on Import and Export Trade Facilitation through Customs Ports Union Government, Department of Revenue-Indirect Taxes,Customs
Overview
The Indian economy is one of the fastest growing economies among the emerging markets today. One important cause is the rapid growth in international trade. In order to sustain the current pace of export growth in a highly competitive global market, there is a need to reduce the associated costs.
Trade Facilitation is aimed at ensuring the movement and clearance of goods across borders at the minimum cost. It is a term used to denote all steps for simplification of procedures and reduction of costs in the course of international trade. Reduction in idle time in any segment of the trading process would reduce transaction costs and would facilitate trade in general and enhance the price competitiveness of Indian goods in international market. Delays increase not only the cost of compliance but also lead to impediments to efficient trading across borders like congestion at the ports.
As a measure of trade promotion, trade facilitation has come to occupy a significant place in the multilateral discussions on trade in the recent past due to the importance given by the international community in liberalizing trade. Over the years, the Department of Revenue (DoR) had initiated various trade facilitation measures like simplification of rules and procedures, IT initiatives, e-governance, Accredited Client Programme (ACP), 24x7 clearance facility, Authorised Economic Operator (AEO) Programme etc.