Indias Ministry of Commerce and Industry has taken an important step in improving the facilitation of foreign trade. Recently, Co-Minister Shri Piyush Goyal announced an innovative initiative to automate the issuance of exporter identity certificates within the framework of the Foreign Trade Policy (FTP) in 2023. This change means that exporters will no longer need to submit applications to the General Office of Foreign Trade (DGFT) but will automatically obtain certification through an electronic data-based system.

Implementation of the new model

This move marks the shift from the manual application process to the automated processing of the IT system for commodity export electronic data and risk parameters provided by the General Bureau of Commercial Intelligence and Statistics (DGCIS). This not only eases the compliance burden for exporters, but also improves the efficiency of cooperation between government departments. Previously, exporters had to submit applications online and be accompanied by a certificate of export issued by a licensed accountant. Under the new system, the exporter identity certificate will be automatically issued in August each year, based on annual export data provided by the General Bureau of Customs.

Increased convenience and credibility

The holder certification program not only improves the credibility of Indian exporters in the international market, but also provides a number of privileges.This includes simplifying the procedures under FTP 2023, self-declaration-based priority clearance, exemption from mandatory bills and bank warranty for the FTP program. This automated process will greatly improve the operating efficiency of exporters and reduce the time and resources wasted due to manual processing.

Impact and Outlook

The initiative is part of the government’s push for digital and automated transformation aimed at improving the competitiveness of the domestic business environment. It not only improves the global image of India’s export industry, but also predicts more technology-driven policies to facilitate trade.