Three digital transformation initiatives by the Indian government likely to affect your import/ export business
Summary-
- The CBIC took three significant digitalization-related steps that will affect your business in more ways than one.
- They are likely to speed up the procedures at customs, encourage transparency and keep a cap on smuggling.
- All import-export companies of India are likely to be affected, and therefore, Indian sellers should be aware of them.
While the supply chain challenges keep rising, the Indian import and export businesses constantly worry about delivery deadlines. Delivery delays affect businesses greatly not only in terms of goodwill but also in terms of loss of revenue, and no one wants that. Custom authorities are getting stricter with the adoption of technology. Delhi Customs zone announced three crucial initiatives, which we can look at as important steps by the customs authorities in digitalization.
1. The government launched an online platform for scheduling examinations of all imported cargo. Although the main intention behind this step was to speed up the process and reduce the physical intervention, they also wish to encourage transparency, better access to information, and convenience with the help of this application. The application is multi-stakeholder, i.e. it is available for all the stakeholders connecting them all to one platform. The usual stakeholders include CONCOR, Customs, Importers, Customs brokers, and importers. This application allows them all to access information, share platforms, and share a view of scheduling examination of goods.
2. Another important change was the introduction of an application that uses blockchain technology and smart-lock, which allows electronic tracking of containerized cargo and lets customs monitor and track cargo movement. The authorities can track the non-duty-paid shipment with GPS, reducing the complexity of documentation and encouraging trade.
3. India’s largest inland port, i.e. ICD Tuglakabad introduced a baggage scanner. It can be used for unintrusive examination of baggage or import cargo. This change will ensure faster clearance of the cargo. Also, the customs authorities will be able to keep a better check on smuggling activity.
If your competitors, the government and everyone else is taking little steps in digitalization, so should you.
Automating your indirect taxes is the best thing you could do for your import-export business. You can advance your tax compliance with the help of automation making it faster and error-free. Tax automation software like the ones by Avalara makes use of AI, blockchain and other recent technologies to make the process more efficient for you. So if it’s been on your mind for a while, you should get your business a tax automation software for staying ahead of compliance this new year.
Avalara helps businesses of all sizes keep up with their tax compliance. For Indian sellers selling across the borders, Avalara’s software solutions are the best, cost-friendly and convenient option. Visit our website to learn more about our software for EU-VAT, cross-border, Sales tax and GST.
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