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The 2024 WCO Technology Conference and Exhibition will be held in November in Brazil. The theme, ‘Digital Frontiers: Customs Embracing Innovation with Traditional and New Partners’, resonates with the e-governance journey in CBIC. Almost 30 years ago, in 1995, when the first bill of entry was filed electronically on the Indian Customs EDI System (ICES) at Delhi Air Cargo, few visualised it as the beginning of a paradigm shift in CBEC, as it was known then, before the advent of the Goods and Services Tax (GST). Today, the ICEGATE portal—the single point of electronic data exchange between the trade, stakeholders, and the Department that extends to all EDI locations across the country—shows more than 3 lakh documents being filed weekly.
While the ICEGATE was introduced in 2004, the automation of processes in both Customs and Central Excise had begun much earlier. From 1986 to 1991, the Department had initiated applications like SERMON and EASIEST in Central Excise that aimed at electronic filing of returns and revenue reconciliation. A robust Risk Management System was launched in 2005, and in a few years, the loop between ICES, ICEGATE, duty payments, and risk management was complete to ensure a fully automated Customs experience. Thereafter, the launch of ACES (Automation of Central Excise and Service Tax) in 2009 was a mega reform that allowed for online filing and payments, thereby reducing manual interventions.
However, the reforms were primarily output-driven. The use of technology was largely an end in itself. While the taxpayer was impacted, the prime focus remained on process improvement. The historic legacy of the Department as a regulator was a key challenge to be overcome before any new narrative could be successful. The fillip came, a few years later, from unexpected quarters.
Three significant and simultaneous developments in 2015-2016 altered the technology landscape in CBIC fundamentally. First, the National e-Governance Plan – 2 (NeGP) or the e-Kranti in 2015 revolutionised the use of automation in government services. Enhancing public service delivery through the optimum use of technology became the new mantra. This was also followed by the adoption of India Enterprise Architecture (IndEA) in 2016, which was a comprehensive framework to facilitate digital governance. Second was India’s ratification of the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA) in April 2016. Third was the approval of Project SAKSHAM by the Cabinet Committee on Economic Affairs in September 2016 to enhance the digital infrastructure in CBIC.
The NeGP spoke of making all government services available to the common man in his locality. The ongoing ACES programme was integrated into this broader framework. This was also a prerequisite for the GST regime, which was to follow soon. It was here that the narrative shifted towards making tax administration an efficient and transparent provider of services to the citizens. The revamped ACES radically changed the way millions of taxpayers conducted their business with the CBIC. Aiming to promote a culture of compliance, it ushered in technological advancement for filing and scrutiny of returns, thereby creating an enabling environment for ease of doing business.
Among the many commitments to be honoured as a corollary of the TFA, a significant one was that of the Single Window. The SWIFT, as it came to be called, transformed the customs clearance ecosystem drastically and permanently. It brought together the major Partner Government Agencies and Departments, like FSSAI, DGCI, WCCB, ASI, etc., involved in the clearance of cargo and integrated them with the Customs on a single digital platform. This was a major step towards smoothening and expediting the clearance process. It brought dwell time into sharp focus, and the use of technology for the reduction of transaction costs became a pivotal point for reform henceforth.
Project SAKSHAM aimed at strengthening the entire spectrum of CBIC’s IT systems. A healthy data management system as its intrinsic part steered comprehensive taxpayer support through streamlined tax processes. Improved taxpayer services were one of its profound impacts. As the IT system became more scalable, it not only led to better compliance but also made CBIC future-ready and resilient.
As these three components of business process reengineering converged, the service delivery construct in CBIC also underwent a lasting modification. While it had been a pioneer in technological reforms, now improved customer service became the norm rather than the exception for the Department. Help desks, help lines, outreach programmes, and feedback mechanisms became the visible arm of engaging with the citizens. As the Department reoriented itself to find a balance between enforcement and facilitation, it leveraged technology to bridge the gap between the public servant and the taxpayer. Through this, it also tried to overcome the Devil’s quadrangle that involves trade-offs among cost, speed, quality, and service, leading to better governance and efficiency.
The major reason that this reform process could sustain was because the evolution was directed towards development outcomes. The alignment of ‘people, processes, technology, and resources’ proved a major change agent. As the narrative moved towards citizen centricity—which is one of the seven pillars of e-governance—the initiatives also started to focus more on outcomes. Another major reform introduced recently—Faceless Assessment, which is an enabler for Turant Customs—shows that CBIC is moving steadfastly on the road to development outcomes as it builds on human capital through the prism of technology. If assessed on the e-governance maturity model, it may well be positioned between stage 4 of optimisation and the final stage 5 of transformation, where deep innovations will further bring about strategic changes in governance.
Dr Kavita Bhatnagar is an IRS & currently a participant in MDI, Gurgaon, PPM programme
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
First Published: Sep 03 2024 | 6:23 PM IS
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