Professional Documents
Culture Documents
Objective
The basic documents for transaction of business will be taken only once by one agency and other agencies will take the information from that agency, electronically, avoiding the need to either physically take the document from one office to another or keying in the data again and again involving the attendant problems of manual labor and errors creeping in at each stage of data entry
Predefined Format
Business Application
Trading Partner
EDI Applications
Application for trade permits Order placement and invoicing EDI Applications Bidding for export quotas
Benefits of EDI
Reduction of Employee Hours involved in creation and handling of paper documents Reduction in cost of fund transfer Reduction in cost of storage space No mailing cost
Cost Savings
Speed
Accuracy
Minimizes the need for rekeying information No mail is lost Communication is easily verifiable
Benefits of EDI
Information is less susceptible to interception and falsification
Security
System Integration
Just-in-time Support
Only necessary items are shipped by the vendor and arrive directly at the manufacturing or assembly line
Disadvantages of EDI
Medium and small companies seek third party service like VAN(Value Added Networking)
Figure: Suppliers, manufacturers, and retailers cooperate in some of the most successful applications of EDI.
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EDI Process
Suppliers proposal sent electronically to purchasing organization Supplier manufactures and packages goods attaching shipping data recorded on a bar code Quantities shipped and prices entered in system and flowed to invoicing program
Purchasing organization receives packages, scans bar code and compares data to invoices actual items received
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EDI Standards
Automotive Industry Action Group(AIAG)
Electronic Data Interchange for Administration, Commerce and Transport(EDIFACT). The EDIFACT syntax is published as the ISO-9735 standard
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Bar Coding
Efficient The data which Involves Data transferred technology for is to be read on development of transferring data to computer product such as a unique code encoded on a application by its product number in form physical product means of an number is of bar and or a shipment of optical reading encoded using a spaces for each products to a device or Bar Code product for its computer scanner. symbology identification. application
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Benefits
Easy availability of sales information to schedule production and stock levels, and minimise stock-out risks
Benefits to manufacturers
Effective control tool for internal operations, inventory and warehouse arrangement 14
Benefits
Benefits to Consumers
Lets them know that they are receiving the right product at right price.
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Status in India
Indian institute of Packaging(IIP) has taken the initiative to introduce the concept in association with FIEO,FICCI,ASSOCHAM,CII,EPCs
IIP has obtained membership of the International Article Numbering Association(EAN) in order to introduce system in the country
EAN, India acting as national numbering association allocates individual organisation code numbers to each organisation .
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Introduction of Computers
Computerization in DGFT was started way back in 1987. Zonal offices were computerized first and then the system was replicated to other smaller offices.
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A single consolidated Aayat Niryaat Form has been devised for different categories of application
Bringing all the community partners dealing with international trade on a EDI enabled platform.
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The Indian Customs EDI System (ICES) now operational in 19 major Customs Stations envisages electronic filing and capturing of declarations regarding goods. Members of the trade, importers, exporters, airlines, shipping lines etc., are required to file their declarations i.e., Bills of Entry, Shipping Bills, Import and Export General Manifests electronically, either from their respective office premises (for those who have established connectivity either through NICNET or any other Value Added Network service provider), or through the Service Centres established for this purpose
Exchange Following Documents License details Bank Realisation TR Challan Import-Exporter Profile
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EDI in customs
Customs to Port Trusts/Airport Authority Customs to Customs Customs to EPCs Customs to RBI/Banks Customs to Importers/Exporters Customs to Custom House Agents Customs to Shipping Lines/Airlines
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ICES Version 2
Biggest project involving the total redesign of the Indian Customs EDI system. The work involves the entire lifecycle of the software design and development.
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Future Scenario
It should be possible to create a few or even a single message/document for the entire process
of transaction in the course of foreign trade. Once VSAT connectivity is established with all Customs / Excise formations in India, all modvat verifications, end use certificate, rewarehousing certificate for transfer bonds, TRA's could be made immediately. Above all there would be uniformity in assessment decision all over India.
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Future Scenario
Once Evidence act and other laws of the land recognise EDI
transactions and provide for the same by fast settlement of disputes, it should be possible to do away with requirements for paper documentation, i.e., there would be no necessity to submit invoices, packing list, B/L etc in paper. Records need only be kept at the offices of Importers / Exporters / CHA's for a minimum period, for verification by concerned authorities, if required. examination of cargo in a routine manner, the facility of Green Channel would apply to almost 80% of cases of regular Importers with a clean tract record.
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Thank you.......
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