ICEGATE Indian Customs Electronic

Commerce Gateway Presentation at APHRD Institute

By N. Srujan Kumar

Deputy CommissionerCustoms Preventive Division, Ongole

● What is e-Commerce(3)● Types of e-Commerce(4)● Essentials of e-Commerce (1)● International business and customs(3)● Automation in customs : ICES (10)● Process flow in ICES(Snapshots)(15)

● Commerce means trade(buy and sell) and auxiliaries to trade(transport, banking, marketing etc.)

● Business includes manufacture, services, profession and commerce

● E-Commerce means carrying commerce electronically

● ‘electronic commerce’ shall mean the supply or receipt of goods and / or services, or transmitting of funds or data, over an electronic network, primarily the internet, by using any of the applications that rely on the internet, like but not limited to e-mail, instant messaging, shopping carts, Web services, Universal Description Discovery and Integration (UDDI), File Transfer Protocol (FTP), and Electronic Data Interchange (EDI), whether or not the payment is conducted online and whether or not the ultimate delivery of the goods and/or services is done by the operator;

(Model GST Law)

● E commerce means buying and selling goods and services including digital products over digital and electronic network.

(Dept of Industrial Policy and Promotion)

Products(goods/services)-Inventory model/Market place modelBuyer/MarketWeb hosting platform(Server and webpage)Database Management software(Oracle)E-Payment gateway(banks can provide)Courier to despatch goods

● http://www.slideshare.net/hazman/business-to-business-electronic-commerce

● http://www.slideshare.net/hazman/business-to-business-electronic-commerce

● B2B● Alibaba, Sulekha

● B2C(Business to Consumer)● Flipkart, irctc, OLA cabs, SBI Online

● C2C● OLX, gmail

● E-Business and e-governance portals(G2B, G2C)● Mee Seva, NIC E-Office, ICEGATE, e-

procurement

● International trade of goods happens through customs of exporting country and importing country

● Goods are assigned ITC HS(International Trade Classification Harmonised System) Code

● Payment happens through banks, under RBI● Customs has to collect duty as well as ensure

compliance to law of land

● All goods coming into India and going out of India are with the approval of Customs (Even ship scrap, waste oil etc. from vessels needs customs clearance)

● Else, it is amounts to smuggling● Coastal cargo movement also is under customs

control● Cargo can move in bulk(dry/liquid) or in

container

● Customs enforces the following Allied Acts while importing/exporting● Prohibitions/restrictions under Foreign Trade

Policy● Arms Act, Wildlife Act etc● Standards of Weights and Measures (Packaged

Commodities) Rules, 1977● Prevention of Food Adulteration Act, 1954

(FSSAI2006)● The Livestock Importation Act, 1898

● Destructive Insects & Pests Act, 1914, PFS Order, 1989 and Plant Quarantine (Regulation of Import into India) Order, 2003

● Drugs and Cosmetics Act, 1940● Hazardous Waste

● Hazardous Wastes (Management and Handling) Amendment Rules, 1989 (MoEF and PCB permission)

● the Environment (Protection) Act, 1986 (for dyes etc.)

● Ozone Depleting Substances, Genetically Modified Organism etc.

● Govt● DG of Foreign Trade(For FTP, Scrips etc.)● RBI(Monitoring FEMA and forex)● PQ/FSSAI/Chemical Analysis labs● DG of Commercial Intelligence and Statistics● Directorate of Revenue Intelligence

● Private● Importers/Exporters● Banks● Shipping Agents/Liners● Customs Brokers● Custodian (Port Trust etc.)

1. ICES: Indian Customs EDI System ● Online processing of Bills(Bill of Entry/Shipping

Bill) by officers of customs for speedy clearance2. ICEGATE: Indian Customs Electronic

Commerce/Electronic Data interchange Gateway● Interface of ICES with external world i.e.

Importer/exporter and other Govt agencies● Online customs duty payment

3. Risk Management System● Segregates transactions requiring deeper

scrutiny● Facilitate compliance, punish non compliance

ICES 1.5(with RMS)

RBI

Banks

FSSAI

PQAQ

IMPEXP

Custodian

Shipping /Air Lines

DGFT

✓ Increased foreign Trade and the consequent increase in volume of transactions▪ 0.5 million during 1997 (EDI launched)▪ 3 million import declaration filed last year

✓ Steady increase in number of importers – at present over 0.4 Million

✓ Proliferation of preferential trade agreements -12 agreements▪ Bilateral / Regional / Multi-Lateral

✓ Multiplicity of tax slabs and types of duties▪ 62 effective rates▪ 11 different duties▪ 15000 Tariff entries at 8 digit level

✓ Large no. of duty exemptions – including export promotion schemes

✓ Large no. of regulatory controls – 32 Acts✓ Large no of International Conventions E.g CITES, CWC,

Basel, Rotterdam etc✓ New challenges for Enforcement

▪ Enhanced Security threat and new avenues for commercial frauds

1. Enforcement and National Security : Prompts instructions related to to allied acts

2. Duty collection : By centralised updating of customs tariffs and notifications, prompts on additional duties(Anti dumping, Safe guard, etc). Easy and less tedious now.

3. Trade facilitation: Saves time and costs by easy filing of documents(RES) and speedy clearances

4. Good Governance: Transparency, File tracking, less interaction with customer, less discretion, objectivity, First In First Out

5. Data exchange between various Govt departments 6. Risk Management System7. Effective reporting(MIS) and Accountability

Slide 22

l DELHI

Goa

Nhava Sheva

SaharVizag

M’lore Cochin TrivandrumTuticorin Chennai Air

Cargo

Haldia

PetrapoleRaxaul

Calcutta AirCargo

Note :

Reliance Router

DELHI

North Block

DGRI,

Jaipur NCH(IGI)

Haldia

Air Cargo

NIC

Note :

Gateway

Ludhiana

MUMBAI

DRI CGO

TKD

PPG

On Same LAN (through switch)

64K

2 Mb

CALCUTTA DRI-KZU

DRI Chennai

DRI Colaba

Hyderabad.

Ahmedabad

DRI Ahd.

B’lore

DRI B’loreCHENNAI

Samrat Hotel

Slide 23

Slide 24

: A long-distance communications network that covers a wide geographic area, such as a state or country.ROLES OF VENDORS WHO WOULD INTERACT WITH

FIELD FORMATIONS:a) Bharat Sanchar Nigam Limited (BSNL) : WAN Service

Provider (MPLS services) and laying of leased lines from exchange to CBEC premises

b) Hewlett Packard (HP) : System Integrator (Field work has been outsourced to M/s DSM) : Site Survey, Supply & Installation of equipments, Commissioning of links..

c) PwC :Selected as “ Project Management and Monitoring Agency” (supported in field work by M/s CMS Computers Ltd. )

Slide 25

M P L S

Central Excise

Data Centre (DC)

Importer / Exporter

Banks

Custodians

Excise Range Offices

CustomsDirectorates & Other Offices

Centrally Hosted Applications

ICES / ACES

Disastor Recovery (DR)

BCP

INTERNET

Schematic Diagram-WAN

● ICES 1.5● Centralised, dedicated Oracle 10g Database

Server/Forms/Reports with disaster management capabilities deployed over HP UX(unix)

● Deployed from Data Centre and accessible through high speed MPLS Wide Area Network at around 582 CBEC field offices all over India, using thin client/CITRIX VPN

● WAN/LAN by HP● Hardware development by TCS

● ICEGATE by WIPRO● RMS by Birlasoft

● System Integration● DBA activities● Management of pre production and production● Helpdesk support

● NIC● Administrative control of development

environment● Provides application patches to SI with

documentation

● National System Manager and SMs at individual offices allot various roles to officers

● Officers are given SSO(Single Sign on ID) by SI on request of SM.

● Each officer given suitable roles by SM. Eg. ACL(Assessment), APR(Appraiser), INS(Examination Inspector) etc.

● BE filing through ICEGATE or Service Centre(Custom House).

● The bills will be waiting in each officers role for their inputs and processing. After processing, they go to next officer/agency.

CHA/IMPORTER

SERVICE CENTRE CHECK LIST SUBMISSIONERROR

SEC 48APPRAISING

OFFICERAUDIT

VALUE >RS 1.00

LAKH

AC

APPROVED

STOP

BANK AC

GREEN CHANNE

LSHED

APPRAISER INSPECTOR SHED APPRAISER

OUT OF CHARGE

YES

NO

YES

NO

YES

NO

NO

Journey of RMS Facilitated BE(Green)Submission of

DeclarationImporter RMS

Message to BankFor duty

No

Appraising

Officer

BE/ Challan

PrintAC

Goods Registration Examination Supdt and Insp Out of Charge

Print Bill of EntryRelease of goods

33

E-Filing through ICEGATE

E- Payment & Delivery

Risk Management System

No Assessment

No Examination

AC Menu

● https://www.icegate.gov.in/● http://ices.nic.in/ICES/AboutIces.aspx● http://www.finmin.nic.

in/reports/ModelGSTLaw_draft.pdf● http://dipp.nic.

in/English/acts_rules/Press_Notes/pn3_2016.pdf

● OECD, WTO, WCO websites● Yourstory, Nitish Desai associates

● ????

Thank You