The National Time Release Study (NTRS) is a comprehensive assessment conducted by the Central Board of Indirect Taxes and Customs (CBIC) of India. This study aims to measure the cargo release time at various ports across the country, with a goal to evaluate the progress towards the National Trade Facilitation Action Plan (NTFAP) targets. It also functions as a tool to identify the impact of different trade facilitation initiatives, determining challenges hindering faster reduction in release times.
The most recent NTRS, for the year 2023, was based on data collected during a sample period from January 1st to 7th, comparing performance with corresponding periods in 2021 and 2022. The ports included in the study represent seaports, air cargo complexes (ACCs), inland container depots (ICDs), and integrated check posts (ICPs), comprising approximately 80% of bills of entry and 70% of shipping bills filed in the country.
The Importance of Cargo Release Time
Cargo release time is a crucial aspect of ease of doing business, defined as the time taken from the arrival of the cargo at the Customs station to either its clearance for domestic use in imports or the departure of the carrier for exports. It is a key indicator of trade efficiency and effectiveness of customs procedures and other regulatory processes involved in cross-border trade. The World Customs Organization (WCO) recommends measuring cargo release time using the Time Release Study (TRS).
Key Highlights from NTRS 2023
The NTRS 2023 report revealed notable improvements in the average import release time compared to previous years. Specifically, there was a 20% reduction for ICDs, an 11% reduction for ACCs, and a 9% reduction for seaports. The report also underlined the importance of the ‘Path to Promptness’ strategy which promotes advance filing of import documents, risk-based cargo facilitation, and the trusted client program (Authorized Economic Operators). The study additionally emphasized the need for focusing on the release time for exports, distinguishing between regulatory clearance and physical clearance.
Data Sources for NTRS 2023
The data for NTRS 2023 was compiled from numerous sources, including the ICEGATE portal, port authorities, customs brokers, participating government agencies (PGAs), and feedback from stakeholders such as exporters, importers, trade associations, and chambers of commerce. The methodology aligns with the WCO TRS and adheres to international best practices.
NTRS 2023: Impact and Benefits
The NTRS 2023 offers a detailed and objective assessment of cargo release time performance at various ports in India. It aids in identifying areas needing improvement and assists in benchmarking against global standards. By supporting evidence-based policies and the implementation of trade facilitation measures, NTRS 2023 enhances trade efficiency, competitiveness, and propels India towards achieving the NTFAP targets and fulfilling commitments under the WTO Trade Facilitation Agreement.
About the National Trade Facilitation Action Plan (NTFAP)
The National Trade Facilitation Action Plan (NTFAP) is designed to implement WTO’s Trade Facilitation Agreement (TFA) provisions in India. It simplifies customs procedures and norms for cross-border trade. Prepared by the National Committee on Trade Facilitation (NCTF) under the leadership of the Cabinet Secretary, the NTFAP covers areas like advanced import document filing, risk-based cargo facilitation, infrastructure upgrades, legislative issues, outreach programs, and inter-agency coordination.
Central Board of Indirect Taxes and Customs (CBIC)
A segment of the Department of Revenue under the Ministry of Finance, the CBIC, formerly known as CBEC, oversees policy formulation concerning the levy and collection of customs, central excise duties, Central GST (CGST) and Integrated GST (IGST). The CBIC is a key player in implementing GST laws, dedicated to enhancing the ease of doing business in India.
Logistics Initiatives in India
Various initiatives like the National Logistics Policy (NLP), the Multimodal Transportation of Goods Act, 1993, PM Gati Shakti Scheme, Multi Modal Logistics Parks, LEADS Report, Dedicated Freight Corridor, Sagarmala and Bharatmala Projects also contribute towards facilitating smoother, more efficient trade in the country. These initiatives are all part of India’s broader strategy to streamline logistics, reduce trade costs, and improve overall business performance.