PAPER TO BE PRESENTED AT AMTOI
DURING THE INTERACTIVE MEETING
WITH IPA ON URGENT ACTIONS TO
BE TAKEN TO IMPROVE THE PRESENT
RANKING OF INDIA ON EASE OF
DOING BUSINESS
By Ramesh P Kolath
Jt Director, FIEO
India’s ranking among the
189 countries.
According to World Bank Survey carried out in 2015 India
rank 142. Ease of doing business in a country depends upon
10 parameters based on which ranking of countries is done
by World Bank every year.
In the previous year India was in 140th position but it
declined to 142 in 2015. While Economic Survey (2013-14)
in its page 35 has put India in 134th position the DGFT
Committee in its Report issued in December 2014 has
maintained in the same position of 142. Some clarifications
are to be furnished by DGFT about discrepancies in the
Economic Survey (2013-14) and DGFT Committee report.
Ten parameters given by the
World Bank to fix the ranking
India's Ranking
.
Parameters adopted by World Bank
DB 2015
DB 2014
1 Ease of doing business (Overall rank)
142
140
2 Starting a business
158
156
3 Dealing with construction permits
184
183
4 Getting Electricity
137
134
5 Registering property
121
115
36
30
7
21
8 Paying Taxes
156
154
9 Trading across Borders
126
122
10 Enforcing contracts
186
186
11 Resolving Insolvency
137
135
6 Getting credit
7 Protecting Minority investors
Ports with Negative Growth in %
.
Sr No Ports with Negative Growth
Percentage
1
Vishakapatanam Port
(-) 9.9%
2
Chennai Port
(-) 4.3%
3
Kandla Port
(-) 7.0%
4
Murmagao
(-) 33.7%
5
JNPT
(-) 3.3%
Break-up of Transaction Cost
(for export)
Sr No
Export Procedures
Time
USD
1
Documents preparation
8 days
365
2
Customs clearance and Inspections
2 days
130
3 days
225
3 days
400
16 days
1120
3
4
Port & Terminal handling
Inland transportation and handling
Total
Break-up of Transaction Cost
(for import)
Sr No
Import Procedures
Time
USD
1
Documents preparation
8 days
400
2
Customs clearance and Inspections
2 days
200
3
Port & Terminal handling
3 days
250
4
Inland transportation and handling
3 days
400
Total
20 days
1250
World Bank lists 7 documents
required (for Export at JNPT)
Sr
Documents for Export
No
Following documents are put in
Sr
the category of " Required in
No
Specific Cases only"
1
Bill of Lading
1 Certificate of Origin
2
Commercial Invoice
2 Inspection Report
3
Foreign Exchange Control
Form ( SAD)
4
Packing List
5
Shipping Bill
6
Technical Standard Certificate
7
Terminal Handling Receipt
Export Documents that can be
dispensed
Sr No Document Name
.
Foreign Exchange
1
Control Form (SDF ) of
RBI
Action Required
SDF has been subsumed in the Shipping Bill
2
Packing list
Commercial invoice has been made commercial
invoice - cum- packing list
3
Technical Stadard
Certificate
Required in specific cases only. Government will
take it up with World Bank for dropping it as a
mandatory document
4
Terminal Handling
Receipts
Issuance of Terminal Handling Receipt / Form -13
/Form-11 can be done away with by automating the
process and integrating it with Customs system
Mandatory Documents for Exports
After completion of the above, India like most other developed countries will
have only following 3 mandatory documents for exports:.
Sr No
Document Name
1
Bill of Lading
2
Commercial Invoice including details of Packing list
3
Shipping Bill containing Foreign Exchange Control form
(SDF) declaration
World Bank lists 7 documents
required (for Import clearance)
.
Sr No Document Name
Following documents are put in the
Sr No category of " Required in Specific
Cases only"
1
Bill of Lading
1
Certificate of Origin
2
Bill of Entry
2
Certificate of Engineers report
3
Cargo Release Order
3
Inspection Report
4
Commercial Invoice
4
Product Manual
5
Foreign Exchange Control Form
6
Packing List
7
Terminal Handling Receipt
Documents that can be dispensed
with (for import clearance)
Sr No Document Name
.
Status
Through enhanced EDI operations at Customs and
its integration with ports system and CFS, so that
Bill of Entry processing details are available at the
gate of terminal through electronic message
exchange.
1
Cargo Release Order
2
Product Manual
3
Certificate Engineer's
Report
4
Inspection Report
5
Packing List
Can be merged with Commercial invoice as in the
case of export
6
Terminal Handling Receipt
Issuing Terminal Handling Receipts must be
automated and integrated with Customs system
Required in specific cases only. The Government
needs to take it up with World Bank for dropping
these documents as mandatory documents for
imports
Mandatory Documents for Imports
After completion of the above, India will require only following 4 mandatory
documents for imports:.
Sr No
Document Name
1
Bill of Lading
2
Commercial Invoice including details of Packing list
3
Bill of Entry
4
Foreign Exchange Control Form
Other recommendations
1) Extension of 24 X 7 Customs clearance facility for all types of
exports / imports clearance
2) Enabling customs EDI system to accept on line submission of all
Export / Import documents
3) Integration of Customs & excise in a common Information
Technology platform
4) Implementation of single window project of CBEC
5) Steps for quicker clearance by Regulatory Agencies other than
customs
6) Implementing change of system on examination norms with
sufficient notice
7) Implementation of existing rules for examination of export cargo
8) Abolition of stamp duty on delivery orders
Conclusion
1) India is facing disastrous decline in export continuously for 10
months. It has to be stemmed
2) Global traders will not come to India to purchase the goods /
service if World Bank ranks India at 142 / 189
3) India should be competitive by reducing high transaction cost
and transaction time. We must be on par with our competing
countries and developed countries
4) Elimination of unnecessary documents and strengthening
and expansion of EDI procedures
5) World Bank should be convinced that “ease of doing business”
has improved and hence India’s ranking in DB 2016 Report
should be put in double digit figures based on 10 criteria laid
down in the World Bank’s DB 2015
Thank you
Federation of Indian Export Organisations
Times Square, Unit No 3A, B Wing
4th Floor, Andheri Kurla Road,
Andheri (East)
Mumbai 400059
Tel: +91-22-4057 2223 (D)/ 22 Fax: (91-22) 2852 2334
Website: http://www.fieo.org