Following the successful implementation of GST in July 2017, the Central Board of Indirect Taxes and Customs (CBIC) is rolling out systems to improve the way business is conducted. It continuously strives to bring simplicity, accountability, consistency, and transparency to the process of clearing all import and export transactions. As part of improvisational procedures, CBIC introduced SWIFT. Let us discuss the SWIFT (Single Window Interface for Facilitation of Trade).
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What does SWIFT mean?
SWIFT is a single-window interface to facilitate trade. This is a transformative approach adopted by CBIC to facilitate business. The word “single window” is very important to improve the efficiency of import and export procedures. It will enable importers and exporters to file their clearance documents online in a single window. Permission from various regulatory authorities can also be obtained online. This reduces physical interaction with government agencies. It results in saving time and costs for the business.
Advantages and features of SWIFT
- Single Point Interface: The core function of SWIFT is to provide a single platform for all import and export transactions. It enables taxpayers to file a joint electronic “Integrated Return” on the ICEGATE portal. This statement is a consolidation of all the data required to obtain the various permits from the various PGAs.
- Reduces paperwork and permit costs: Permits can now be obtained online in one place. This eliminates the need for coordination with various government departments meaning a reduction in time and costs.
- Ease of doing business: The most important motive behind the introduction of SWIFT is the ease of doing business. For this purpose, a single platform is established to facilitate all import and export-related services.
- Brings PGAs (participating government authorities) on a single platform: Clearances from primarily six PGAs namely Food Safety (FSSAI), Drug Controller, Plant Quarantine, Animal Quarantine, Textile Committee, and Wild Life Crime Control Bureau are required for all imports. But now with the introduction of SWIFT, all these agencies are merged under a single platform. These permits can now be obtained online on a single platform.
Facilities under SWIFT
Some of the essential facilities that have been provided under the Single Window through SWIFT are as follows:
- Integrated Declaration: Traders shall submit an Integrated Import and Export Declaration that will contain information related to customs clearance required by all participating Government Agencies (PGAs). Separate forms/declarations have been omitted with integrated declarations being implemented with major import regulatory authorities involved in issuing clearances or ‘No Objection Certificates’ for live consignments, i.e. a single import declaration and online clearance facility have been included after import.
- Integrated Risk Assessment: All Participating Government Agencies (PGAs) will use an automated system to apply the principles of risk-based selectivity to conduct inspection and testing. Under an integrated risk management system, the risk criteria of major import and export regulatory agencies in India for prohibition, sampling, and testing of consignments are also integrated into the system.
- Automated Routing: The system uses business rules to identify shipments based on declarations to automatically route them to the appropriate PGA.
- Online Clearance: The system records and aggregates clearance-related decisions and clearances from all relevant PGAs and provides the results to the trader in one place. There is a functional online consignment release system with major import/export regulatory PGAs.
How SWIFT will help?
- It will provide a one-stop interface for the clearance of imported goods.
- It replaces 9 separate documents with one Integrated Customs Electronic Declaration
- Facilitates trade by reducing dwell time and improving ease of doing business
- Reduces documentation and clearance costs
- It brings 6 participating government agencies to one platform
- It eliminates the need for taxpayers to deal with these agencies separately.
- Indeed, SWIFT will go a long way to take the current government’s new trade facilitation initiatives to new heights in the times to come.
Final words
As part of the ‘Ease of Doing Business’ initiatives, the Government of India has started the implementation of the Single Window project to facilitate cross-border business in India. The Single Window Interface for Trade Facilitation (SWIFT) is the system through which India has implemented a ‘single window’. SWIFT allows importers and exporters to file their customs documents online in just one place. The required permission, if any, from other regulatory agencies is obtained online without the trader having to contact the involved government agencies separately. SWIFT streamlined the entire shipment clearance process and significantly reduced the interface between commerce and regulatory agencies. More information about SWIFT can be obtained at: https://www.icegate.gov.in/SWIFT/.
