India pushes for global customs network

India is pushing for speedy implementation of a globally networked customs (GNC) platform, which envisages an interconnected customs-to-customs information sharing system.

The platform will facilitate seamless exchange of trade-related information and better customs control through sharing of intelligence inputs and risk profiles with regard to commercial frauds, money laundering and narcotic drugs.

The World Customs Organisation (WCO) is set to decide this month on India's plan on GNC for transition from concept to reality by conducting a pilot project.

The Central Board of Excise and Customs (CBEC) made a presentation to the GNC Adhoc Group of WCO in April this year, which accepted the model suggested by Indian customs as the way forward.

The main advantage of GNC would be the facilitation of international trade through access to data available with other countries in the supply chain.

This would improve national risk analysis and is expected to raise the effectiveness and efficiency of important clearances.

For traders, the advantages of GNC would include facilitation for import and export through streamlining of information exchanges between concerned customs organisations and reduction in transaction costs by potentially dispensing with the production of the same information to multiple administrations.

When implemented in all its dimensions, GNC has the potential to fundamentally change the way customs administrations have so far interacted - seamless and efficient customs-to-customs, customs-to-business and business-to-business

transactions.

The CBEC officials pointed out that the challenge for GNC was to interconnect and integrate in a useful way, the export and import information, by sharing it between administrations with a view to improve national risk management capacities.

The exchange of information has been attempted in the past through initiatives such as Unique Consignment Reference (UCR), Integrated Supply Chain Management (ISCM) guidelines, Authorised Supply Chain and SAFE Framework of Standards.

In parallel, sharing of information in the enforcement track (intelligence and investigation) on risk management and Customs Enforcement Network (CEN) platform has also been done.

GNC would bring together on one platform the commercial and enforcement aspects on a real-time basis.

The countries participating in GNC will have to address the issues of harmonization of procedures, bringing in uniformity in content of information and a common legal global framework for sharing of information.

The CBEC is currently considering a long-term action plan for harmonisation and standardisation of procedures, enhancement of IT infrastructure and increased integration amongst customs administrations through mutual recognition agreements.