The Central Board of Indirect Taxes and Customs (CBIC) has launched the Exchange Rate Automation Module (ERAM) to enhance trade facilitation. The ERAM will publish exchange rates of 22 currencies online in advance, replacing the existing manual process. The exchange rates will be available on the ICEGATE website twice a month, simplifying and speeding up customs procedures. The ERAM is part of the government's efforts to digitize and automate processes, expected to improve the ease of doing business for exporters and importers.
In a significant move aimed at enhancing trade facilitation for exporters and importers, the Central Board of Indirect Taxes and Customs (CBIC) has announced the launch of the Exchange Rate Automation Module (ERAM) effective from July 4, 2024. This automated system, as per the circular issued by the CBIC, will replace the existing manual process of ascertaining and publishing the exchange rate. The ERAM is a significant step towards trade facilitation as it will publish the exchange rates of 22 currencies online in advance, thereby easing the process for all importers and exporters.
The Finance Ministry, in its statement, highlighted the importance of this move, stating that it will greatly simplify and speed up customs procedures. The exchange rates will be made available on the ICEGATE website twice a month, specifically on the evening of the 1st and 3rd Thursdays of the month, and will be effective from midnight of the following day. This detailed procedural modality has been explained in Circular 07/2024-Customs, as per the Finance Ministry.
The new system will do away with the existing system of notifying exchange rates through a notification. Instead, a link will be provided on the CBIC website which will direct the user to the ICEGATE website, where the published rates can be viewed. This move is expected to streamline the process and make it more user-friendly. The published exchange rates will be stored in the system and will remain accessible on ICEGATE for future reference. This feature will enable a user to check the rates for a previous day, thereby providing a comprehensive and accessible record of exchange rates.
The implementation of ERAM is a part of the government's ongoing efforts to digitize and automate various processes to facilitate trade and commerce. The move is expected to bring about a significant improvement in the ease of doing business, particularly for exporters and importers dealing in the 22 currencies for which the exchange rates will be published.
The ERAM is not the first initiative of its kind. In the past, similar efforts have been made to automate and digitize processes related to trade and commerce. For instance, the Automated System for Customs Data (ASYCUDA), a computerized system used by customs authorities in several countries around the world, has been instrumental in simplifying procedures, enhancing efficiency, and reducing transaction costs.
However, the ERAM, with its focus on automating the exchange rate determination process for customs and publishing the rates online in advance, is unique in its approach. It is expected to bring about a significant improvement in the ease of doing business, particularly for exporters and importers dealing in the 22 currencies for which the exchange rates will be published.
The launch of the ERAM by the CBIC is a significant step towards enhancing trade facilitation for exporters and importers. By automating the exchange rate determination process and publishing the rates online in advance, the ERAM is expected to simplify and speed up customs procedures, thereby contributing to the ease of doing business. As the world continues to embrace digital transformation, such initiatives are likely to become increasingly important in facilitating trade and commerce.
