Although processes at sea ports remained largely “inefficient” in the country, the processes of export and import of goods at Kempegowda International Airport (KIA) has dramatically improved for authorised economic operators (AEOs), according to the Economic Survey tabled in Parliament by Finance Minister Nirmala Sitharaman on Friday.
Quoting a case study of an electronics company based in Bengaluru, which is currently AEO-T2 certified, the Economic Survey in its sixth chapter ‘Targeting Ease of Doing Business in India’ stated that the business environment had changed for some segments after the implementation of the AEO policy in 2016 and compared the time taken for exporting electronics from Bengaluru to Hong Kong, with and without AEO registration.
An AEO is a party involved in import and export of goods and approved by the Customs administration.
“Once the shipment is ready at the factory in Bengaluru, it takes three hours to transport it to the KIA. At the airport, it takes one hour to enter the exports terminal. So far, there is no difference between an AEO and a non-AEO. However, total time spent at the airport for Customs and examination process is just two hours for AEO-T2 operators. Non-AEO operators take six hours,” it stated.
In fact, after AEO implementation, the total time spent in India (six hours) is less than that spent in Hong Kong (seven hours). “This shows, with the help of right policies, India can achieve international standards, or even better them,” the survey stated.
The process flow was also studied in reverse and compared with the time taken in importing electronics from China to Bengaluru, with and without AEO. The number of hours taken for a consignment to reach the warehouse in Bengaluru is much less for an AEO when compared with a non-AEO, it stated.
The case study suggested that the processes in Indian airports was vastly superior to those at sea ports for both imports and exports; and AEO did significantly improve the process but it is reasonably smooth even for non-AEO operators importing/ exporting electronics, the Economic Survey stated.