Recommendations on Cargo Community System National Trade Community Portal System NTCPS Date 28 th October 2015 NTCPS Ultimate Objective Ease of Doing Business ID: 603426
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Slide1
AMTOI Recommendations on Cargo Community SystemNational Trade Community Portal System (NTCPS)
Date
28
th
October
,
2015
Slide2
NTCPS – Ultimate Objective Ease of Doing Business Digital IndiaReduction of Transaction CostDashboard to MOS & GOI for Real Time MIS on Shipping movements & Exim transactions 2Slide3
NTCPS – Salient Features A self sustaining model to fund development, maintenance and timely enhancement to keep up with trade dynamics Eliminate the duplication of data entry by integrating multiple systems like Ice gate , ICES, Terminals, CFSs, Shipping Lines etcData Flow to be multidirectional and availability to be on reciprocal basis, currently it its one way traffic that too with very limited entities A time bound plan to Identify and dematerialize all paper transactions between all the entities involved in EXIM trade Joint Ownership of all Stake Holders to ensure participation
A
futuristic platform, a model for other industries to follow
Participation
of all
Govt
Bodies/Depts/organizations under 4 ministries of Shipping, Finance, Commerce and Civil Aviation .
3Slide4
NTCPS – Possible Model at home NTCPS can be structured on basis of a classical and more recent example in the financial industry (payments business) is the recently created NPCI (National Payments Corporation of India), which is a section 25 company held by 10 core banks each with a paid up capital of Rs 10 crore and a total paid up capital of 100 crores.4Slide5
NTCPS – Objective The purpose of this presentation is to create the background and the next steps for the creation of the National Trade Community Portal System (NTCPS). The objective of creating the NTCPS is to bring efficiency, speed, convenience in the flow and use of information, documentation, movement of goods across multiple modes of transport and across various stakeholders in a seamless manner, thereby contributing to the motto of “Ease of Doing business” and “Digital India”, a national objective of the Government of India.5Slide6
NTCPS – Stakeholders Cargo Interest - Exporters and Importers Revenue Authorities- Customs and Central Excise & Service tax (Future GST)Ocean and Air Carriers: Shipping Lines, Air Lines, NVOCCs, Feeder Operators, Ship Owners, Ship Operators, Cargo Consolidators etcLand and Rail Carriers: CONCOR, Private Train Operators, Trailer and Truck transportersPorts and terminalsIntermediaries: Custom House Agents/Custom Brokers, Freight Forwarders, 3 PL OperatorsCargo
Storage and Handling Agencies: CFS Operators, Inland Container Depots, Bonded warehouses, Customs and Excise Notified Warehouses, Surveyors,
Labours
, Fork Lift Operators, Container Repairs
etc
Statutory Bodies: FSSAI, Quarantine Agency, Textile Committee, Wild Life Agency, ADC
etc6Slide7
NTCPS – Stakeholders Industry Bodies, interest groups, lobbies: FIEO, TEXPROCIL, CHEMCXIL, EEPC, AMTOI, CAI, CSLA, ACTO, FFFAI, CFSAI etcFinancial Institutions and Regulatory Bodies: RBI, Commercial Banks, ECGC, Forex Dealers etcInsurance Companies: Cargo Insurance, Professional Liability insurers for Carriers, Handling Agencies, Ports, terminal etcIndustry Nodal Agency - Office of Director General of Shipping Ministries (Govt. of India)
Ministry
of Shipping
Ministry
of Finance
Ministry of CommerceMinistry of Civil Aviation
7Slide8
NTCPS – Scope of Services Vessel Schedule / TrackingGeneral Cargo ServicesContainer Tracking / RequestPre-advice / Documentatione-GatePass servicesCargo & Commodity Services
Manifest & BOL Services
e-Delivery Order
Customs Handling/ Clearance enquires
Logistics and Transport Services
Special Handling services
8
Port Authority
CFS and Warehouse Services
Rail Operations (ICD) Services
SEZ &
Freezone
Services
Customs Services
Weighment
Certification
Payment Gateway - Online Services
Banking Services
Insurance Services
Trade Notifications
Tariff servicesSlide9
NTCPS – Structure of Participation NTCPS to be incorporated as a Section 8 Companies Act 2013 (old Section 25 of Companies Act, 1956) and can be set up by AMTOI or a Confederation of Logistic Associations or any other trade organization with the size and influence in the trade under a mandate from the Ministry of Shipping/ Ministry of Finance. NTCPS could be initially be promoted by large shareholders from trade associations with share of equity funding. IPA can be a share holder of this entity. Banks and Financial institutions such as EXIM Bank, SIDBI, IDFC, ICICI etc. may also be considered for taking equity ownership in NTCPS.9Slide10
NTCPS – Legal Authority We need to evaluate the appropriate legal framework that would provide the basis of legal authority to act and also provide teeth to NTCPS. Further the mandate for this initiative has to come from Ministry of Shipping / Ministry of Finance. If any suitable provisions in existing legal framework exists it would be important to use those to invoke and create the legal authority of NTCPS.10Slide11
NTCPS- Communication and Buy in From Stake Holders Lots of efforts need to be spent in creating consensus around all stakeholders and all their concerns arising from a shift to a new system need to be addressed through effective communication and through the process of building a NTCPS system that addresses local issues and concerns and makes it user friendly.11Slide12
NTCPS – Board of Governance An initial board should comprise of eminent personalities from the private sector as its Chairman (for example Mr. Nandan Nilakeni, Mr. Narayanamurthy, Mr Ratan Tata etc). A full time CEO should be appointed who shall drive the process of implementation of NTCPS. The Board will also have representatives from the above 4 ministries An illustrative structure is depicted below:Board of Directors MD & CEOAdvisory
Panel
Below this level would be (reporting to MD & CEO
)
Chief Operating Officer (COO)
Chief Risk Officer (CRO)
Chief Finance Officer (CFO)Board secretariat
The
reportees
into COO would be:
Chief Technology Officer (CTO)
Head of various
Business
12Slide13
NTCPS – Board of Governance 12Slide14
NTCPS – Funding Funding aspect of this initiative needs to ideated.13Slide15
NTCPS – Appointment of Consultants Technical, Legal and IT consultants to be appointed, Technical committees, IT committees to be formed14Slide16
NTCPS- Planning and Execution A detailed 100 days, 1 year, 3 year plan should be articulated and suitable help of consultants should be sought in putting together such business plans.We can partner with any one of the International Port community system along with an Indian consultant with domain expertise as a technical partner and use their IT provider as the system designer working closely with any Indian or offshore IT company working on providing the solution. This is what we need to do once the broad contours are agreed by all stakeholders. 15Slide17
NTCPS – Benefit to the Stake Holders and Govt. The formulation and implementation of NTPCS will bring in huge benefits to the trade. Our ranking in the following Global Indices will rise rapidly, Ease of Doing Business Logistics Performance Index. 16Slide18
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