Ministry of Finance announces launch of Exchange Rate Automation Module

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Ministry of Finance announces launch of Exchange Rate Automation Module

The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular announcing the launch of the Exchange Rate Automation Module (ERAM). This automated system, which will come into effect on July 4, 2024, will replace the existing manual process of ascertaining and publishing exchange rates.

Key Features of ERAM

Automated Publishing

ERAM will automatically publish the exchange rates for 22 currencies online. This will make it easier for importers and exporters to access the information they need.

Publication Schedule

The exchange rates will be updated on the ICEGATE website twice a month, specifically on the evening of the 1st and 3rd Thursdays. These rates will take effect from midnight the following day.

Accessibility

A link on the CBIC website will redirect users to the ICEGATE website, where the published rates can be viewed. The rates will be stored for future reference, allowing users to check historical rates.

Benefits

Trade Facilitation

The automated system is expected to streamline the process of obtaining exchange rates, reducing the administrative burden on importers and exporters.

Enhanced Digitalization

The move is part of CBIC’s broader initiative to enhance digitalization within customs processes, aiming for greater efficiency and transparency. The launch of ERAM marks a significant step in this direction, ensuring timely and accurate publication of exchange rates, which are crucial for international trade transactions.

Indian Customs Electronic Gateway (ICEGATE)

National Portal

ICEGATE is the national portal of Indian Customs and is part of the Central Board of Indirect Taxes and Customs (CBIC). It provides electronic filing services to trade, cargo carriers, and other trading partners.

User Base

More than 1.6 lakh users are registered with ICEGATE, serving over 12.5 lakh importers and exporters.

Key Services Offered

  • E-Filing: Electronic filing of import (Bill of Entry) and export (Shipping Bills) goods declarations.
  • E-Payment: Payment of Customs Duty electronically.
  • Common Signer Utility: Free web-based utility for signing all Customs documents.
  • E-Sanchit: Online filing of supporting documents.
  • IGST Refund: End-to-end electronic processing of IGST refunds.

Customs Processing

All electronic documents and messages handled by ICEGATE are processed by the Indian Customs EDI System (ICES), which operates at more than 250 Customs locations. This integration enables faster customs clearance and comprehensive support for importers and exporters, improving efficiency and reducing delays.

Conclusion

The introduction of the Exchange Rate Automation Module (ERAM) is a significant milestone in the CBIC’s efforts to digitize and streamline customs processes. By providing timely and accurate exchange rate information, ERAM will facilitate smoother international trade operations, benefiting the entire trading community.

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