Export/Import Updates!
April 29, 2020

Is Digitalising Shipping Processes Enough to Improve India’s Ease of Doing Business Ranking?

India has managed to break into the top 100 countries in World Bank’s Ease of Doing Business ranking. In the latest rankings published by the World Bank, India was ranked 100. This is a major progress from the previous year’s rank of 130.

While this is an important achievement for the country, India is still lagging behind in certain important parameters like Trading across Borders, where it is ranked 146 among 190 countries.

What is Trading across Borders ranking

The Trading across Borders parameter is important as it measures the efficiency with which certain compliances associated with the import-export procedure are carried out.

For rating performance on Trading across Borders, the World Bank looks at the time and the cost attached with the logistical process involved in export-import trade of a country. 

To arrive at a ranking, World Bank studies the time and the cost (excluding tariff) attached with 3 sets of procedures namely - documentary compliance, border compliance, and domestic transport involved in the entire export-import procedure.

The digitialisation drive by Ministry of Shipping

To improve upon this facet of international trade, the Ministry of Shipping has made it mandatory to exchange/transfer trade documents - e-invoice, e-payment, and e-Delivery Order - in digital form via the Port Community System (PCS). Earlier this facility was available only for DPD container clearance at JNPT Port, but now with the latest notification (link given below), the PCS facility has been extended to all stakeholders like terminals, CFSs, ICDs, and other Major Ports where the Port Community System is available. 

The Port Community System (PCS) is the integrated web-based message exchange platform for the entire maritime community operated by Indian Ports Association (IPA).

The PCS is directly linked to ICEGate, a portal operated by the Customs to digitalise trade processes such as filing of import and export documentation, payment, and document status tracking. This will help in easy transfer of information from one system to another. (Source: Ministry of Shipping Notification)

Is it enough?

While digitizing these processes will definitely help in improving the turnaround time of the listed processes, at the same time, it is also important to note that these are not the only issues at Indian Ports that affect the turnaround time of the shipments.

According to the report, Port Logistics: Issues and Challenges in India, authorized by the Niti Aayog, published by Dun & Bradstreet (DNB) in February 2018, port congestion, shipping line issues and charges, regulatory clearances, customs clearances, documentation and paperwork are the major issues that result in detention and demurrage charges incurred by importers. In other words, these issues are responsible for causing a delay in processing shipments.

Among the points listed in the DNB report, port congestion is the main pain point. If our ports can work on improving infrastructure issues, it would be easier to implement and execute the new initiatives.

Instead of looking at these parameters separately, it would probably be better if the policy framers looked at the entire trade activity holistically – which includes documentation, shipping lines, port operations, traders, policies and laws of trade, and service providers like CFS, stevedores, rail and road transporters, and terminal operators.

A holistic approach would ensure that in an attempt to fix one problem, we would not give rise to or disrupt another sector of the trade. The loss of business and employment suffered by CFS operators providing service when the DPD model was extended to all importers at JNPT is a case in point.

To know more about Direct Port Delivery, click here.

Sources: 

Ease of Doing Business Ranking, World Bank

Trading across Borders, World Bank

Ministry of Shipping Notification

Editorial Team
Editorial Team
Customer success manager
Tea cup with steam illustration
JOIN US FOR CHAI

Signup & get articles in your inbox

Signup to Cogoport. Get trade new & updates, and get assistance with booking international shipments online!

More articles

Cyber Scams Target Importers, Exporters: What To Do To Stay Safe Online

Cyber Scams Target Importers, Exporters: What To Do To Stay Safe Online

Read key cyber-security frauds affecting exporters-importers. Why SMEs should be alert? How SMEs can protect themselves when under attack? Useful tips to stay safe.

Traditional to Digital: Journey of a Logistics Manager

Traditional to Digital: Journey of a Logistics Manager

Logistics management can be rough. But the digital transformation in the supply chain industry is increasingly a quick solution.

Indian Shipping Industry - 70 Year Evolution

Indian Shipping Industry - 70 Year Evolution

A walk down the memory lane of Indian Shipping History

Shipping Technology - Redefining the Value Addition

Shipping Technology - Redefining the Value Addition

How the shipping industry business model is changing due to technology

Glino Karjadi talks about Digitalisation in Shipping

Glino Karjadi talks about Digitalisation in Shipping

What drives Cogoport is a passion for the needs of SMEs and a desire to see them grow.

Cogoport Recognised in the Freight.Tech100

Cogoport Recognised in the Freight.Tech100

One of the 100 most innovative companies in freight

Export/Import Updates!

Heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Sara Smith
Customer success manager

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Heading

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Resources

No items found.