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Imperatives of Trade Facilitation in the Indian Coffee Sector: A Transaction Cost Perspective

Imperatives of Trade Facilitation in the Indian Coffee Sector: A Transaction Cost Perspective The ASEAN India FTA and the possible phasing out of some export incentives may have profound implications on cost competitiveness of the Indian coffee sector. Observations in this paper are based on extensive discussions with the major coffee exporters, traders, logistics service providers and officials at the ports (Chennai, Kochi and Mangalore). In the coffee export sector, most of the documentation and customs related assignments are outsourced to Customs House Agents who access the permit system on behalf of exporters. This challenges the basic confidentiality in the system, as one exporter may assign the work to multiple CHAs and one CHA may do the documentation for multiple exporters. The retention time for export related documents varies across ports, which delays post-shipment documentation and claim of incentives by exporters. An integrated online system for the issuance of mandatory and importer-specified certificates and permits by various agencies (central, state and private) would reduce the time and duplication of documents. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Global Trade and Customs Journal Kluwer Law International

Imperatives of Trade Facilitation in the Indian Coffee Sector: A Transaction Cost Perspective

Global Trade and Customs Journal , Volume 9 (8) – Jul 1, 2014

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Publisher
Kluwer Law International
Copyright
Copyright © Kluwer Law International
ISSN
1569-755X
Publisher site
See Article on Publisher Site

Abstract

The ASEAN India FTA and the possible phasing out of some export incentives may have profound implications on cost competitiveness of the Indian coffee sector. Observations in this paper are based on extensive discussions with the major coffee exporters, traders, logistics service providers and officials at the ports (Chennai, Kochi and Mangalore). In the coffee export sector, most of the documentation and customs related assignments are outsourced to Customs House Agents who access the permit system on behalf of exporters. This challenges the basic confidentiality in the system, as one exporter may assign the work to multiple CHAs and one CHA may do the documentation for multiple exporters. The retention time for export related documents varies across ports, which delays post-shipment documentation and claim of incentives by exporters. An integrated online system for the issuance of mandatory and importer-specified certificates and permits by various agencies (central, state and private) would reduce the time and duplication of documents.

Journal

Global Trade and Customs JournalKluwer Law International

Published: Jul 1, 2014

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