New Delhi, Nov 14 (KNN) In order to cut down on time taken for custom clearance of export consignments from a few days to just a few hours, the government has implemented a risk management system (RMS). 

“RMS is a trust based IT system that expects the trade to make correct declarations to Customs,” said Finance Minister P Chidambaram while inaugurating the system.   

“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,” he added.

With the introduction of RMS in exports, the dwell time which now ranges from 1.6 days to 3.68 days will be brought down to a few hours in exports too, the Finance Minister said yesterday.

He said benefits are expected to accrue to the trade also in terms of reduced transaction costs, thereby enhancing the global competitiveness of our export goods.

The tax department will gain as it would bring additional revenue by plugging loopholes as some traders don’t do genuine exports/imports.  RMS for imports had helped to bring in additional revenue of Rs 2,211 crore.

The launch of RMS in exports today covers 11 Customs stations at Bangalore, Chennai, Delhi, Hyderabad, Mumbai, Pune and Tuticorin.  It would be extended to all EDI (Electronic Data Interchange) customs stations by year end.

The 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 the customs department can ensure speedy clearance of the import and export goods.

The RMS for imports was started in India in December 2005 and it has helped to bring in additional revenue of Rs 2,211 crore, Chidambaram added.

It has also reduced the dwell time, or the duration for which cargo remains in transit storage while awaiting clearance, for incoming shipments. (KNN/SD)