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What is an express cargo clearance system?

ECCS streamlines customs clearance for express shipments. Learn more about its meaning and step-by-step guide to register.
What is an express cargo clearance system
In today’s fast-paced world, where time is money, efficient transportation of goods is crucial in business. The Express Cargo Clearance System (ECCS) is designed to facilitate quicker clearance of cargo, especially for express shipments. This is vital for businesses that deal with time-sensitive goods or require rapid international shipping. ECCS helps reduce waiting times at customs, ensuring a faster supply chain. The system integrates technology and streamlines procedures to expedite customs clearance without compromising on compliance or security.

In this blog, we will dive into what ECCS is, the clearance procedures, and other important activities related to ECCS.

What is ECCS?

Express Cargo Clearance System (ECCS) is an electronic platform designed to streamline the customs clearance process for express consignments. It enables faster processing of shipments, significantly reducing the time taken for goods to move through customs. ECCS is a part of the broader push towards digitalization and efficiency in international trade logistics. By integrating various stakeholders, including customs officials, shipping companies, and importers/exporters on a single platform, ECCS ensures a seamless and swift clearance process1.

Impact of ECCS on global trade

The introduction of ECCS has transformed international trade. By reducing the time and complexity associated with customs clearance, ECCS has made global markets more accessible. This is especially beneficial for small and medium-sized enterprises (SMEs) that may have been discouraged by the logistical challenges of international trade. The efficiency brought by ECCS leads to cost savings for businesses and contributes to the overall competitiveness of a nation’s economy.

ECCS related activities

ECCS encompasses several key activities including:

Pre-arrival processing:

Under ECCS, cargo is processed before it reaches the destination, minimizing delays.

Real-time tracking:

Stakeholders can track consignment status in real time, enhancing transparency and predictability.

Documentation submission:

Importers are required to submit necessary documents electronically in advance.

Expedited clearance for low-risk consignments:

Low-risk consignments are cleared quickly, often within a few hours of arrival, ensuring minimal delay in cargo processing.

Automated assessment and compliance checks:

The system automatically evaluates documents for compliance and potential risks.

Automated clearing:

The system automates many aspects of the clearing process by leveraging electronically submitted data and documentation.

Clearance procedures for imported goods

The ECCS customs process for imported goods usually involves the following steps:

Courier registration:

The courier company must register with the Central Board of Indirect Taxes and Customs (CBIC) to participate in ECCS.

Electronic customs declaration:

The courier company electronically submits the customs declaration/ Bill of Entry for each imported shipment.

Risk assessment and customs processing:

Customs officials electronically assess the risk associated with the shipment and determine the level of clearance required.

Payment of customs duties and taxes:

The importer electronically pays the applicable customs duties and taxes.

Customs clearance:

Upon successful payment and risk assessment, customs grants clearance to the shipment.

Delivery to importer:

The courier company delivers the cleared shipment to the importer.

Step-by-Step guide to ECCS registration procedure

To register with ECCS, courier companies must follow these steps:

Create an account:

Register on the ECCS portal using the IEC and other required details.

Submit registration form:

Fill out and submit the ECCS registration form electronically.

Upload documents:

Upload scanned copies of required documents, such as IEC Code, PAN card, and address proof.

Verification and approval:

Customs officials verify the submitted information and documents. Upon successful verification, ECCS registration is granted.

ECCS and e-commerce: A symbiotic relationship

E-commerce businesses stand to gain immensely from ECCS. ECCS ensures that e-commerce businesses can meet customers’ expectations and provide quick deliveries, especially in the era of next-day and same-day deliveries, where any customs delay can disrupt the entire supply chain.

ECCS plays a pivotal role in modernizing and simplifying customs processes for express cargo. This benefits e-commerce businesses by reducing delays and costs associated with customs clearance and enhances the overall efficiency of international trade. As global trade continues to evolve, systems like ECCS will become increasingly important in maintaining the speed and reliability of supply chains.

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Frequently Asked Questions

What is the purpose of implementing the ECCS?
The purpose of implementing the Express Cargo Clearance System (ECCS) is multifaceted and aimed at enhancing the efficiency and effectiveness of international trade logistics. The key objectives of ECCS are:

Speed up customs clearance: Significantly reduces the time it takes for goods to clear customs. Crucial for express shipments where time is of the essence.

Streamline documentation processes: Enables digital submission and automated processing of necessary customs documents, minimizing paperwork and reducing the likelihood of manual errors.

Enhanced transparency and tracking: With real-time tracking capabilities, ECCS provides stakeholders with better visibility of their shipments. This helps in planning and reduces uncertainties related to the arrival and clearance of goods.

Improved compliance and security: The system automatically assesses and screens shipments for compliance with regulations, enhancing international trade security and reducing the risk of transporting contraband or illegal items.

Cost-effectiveness: Expedited clearance reduces demurrage and other related costs for businesses.

Facilitate global trade: Facilitates smooth and efficient global trade, especially beneficial for e-commerce businesses and those dealing with time-sensitive products.

Support small and medium-sized enterprises (SMEs): By simplifying the customs process, ECCS makes it easier for SMEs to engage in international trade, promoting economic growth and diversification.

Adapt to evolving trade dynamics: In an era of digitalization, ECCS offers a modern solution that aligns with current and future trade needs.

In summary, ECCS implementation aims to modernize the customs clearance process, ensuring it is faster, more efficient, transparent, and secure, thereby supporting the smooth flow of global trade.
Published on December 14, 2023.

Sources:
1. https://eccsmobility.cbic.gov.in/eicimobility/
2. https://courier.cbic.gov.in/Aboutus.jsp
3. https://old.cbic.gov.in/resources//htdocs-cbec/customs/ECCS_nov.pdf

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