Fieo claims that exporters may be able to bring down the costs incurred on customs by 50 per cent and long dwell periods may become a thing of the past if all its recommendations are implemented.

The commerce ministry had asked Feio to undertake the study for streamlining the procedures for cargo handling at the two airports.

The committee finds that the average dwell time for exports is approximately 2.6 days, thanks to a cooling off period of 24 hours enforced on airlines for security reasons. This, feels the committee,can be easily brought down to less than 24 hours if measures are taken to address the security concerns. Addressing the security concerns, the committee recommends that airlines should be given the responsibility to ensure cargo security. The committee recommends that the rate structure for screening of packages should be substantially reduced so as to encourage airlines to opt for screening of cargo in larger numbers. The Government can even consider subsidising machine acquisition and help custodians to provide this service free of charge.

Though Delhi and Mumbai handle over 75 per cent of the country's air cargo traffic, the infrastructure available is inadequate. "The private sector needs to be involved in the expansion of existing facilities so as to introduce an element of competitiveness," says K K Jain, chairman of the study group.

The committee recommends the setting up of an air freight station in the vicinity of the air cargo units at Delhi and Mumbai. "We have even identified an area near theDelhi airport, right on the highway," says Edmund Jones, one of the committee members. This facility should be privately-managed by an umbrella organisation involving the airlines, the freight forwarding agents and the custom house agents, says the report. This organisation should have the mandate to screen large packages. The committee suggests that the Custom department should set up a export documentation and examination unit. "This will not only reduce the pressure on the existing cargo handling facilities at Delhi and Mumbai but is also likely to reduce the number of cases of theft/pilferage, etc."

Until a privately-managed air freight station comes up, the committee suggests that the existing common user facilities in the export cargo should be divided into four or five separate export warehouses. "In these warehouses, the airlines will bear the complete responsibility for cargo security," says Vipin Vohra, chairman, Air Cargo Agents Association of India and member of the Fieo study group.

Thecommittee is all for setting up a time frame within which electronic trading of documents through EDI will be made mandatory. For imports, the dwell time should be reduced to 7-10 days from the existing 19-22 days. A number of reasons for the unnecessary delay with possible solutions has been cited in the report.

Jain points out that the importer himself is largely responsible for the delay in clearance of consignments. Improper or incomplete filing of Bills of Entry by importers or clearing house agents also delay things. Another reason is the reluctance of importers to pay duty immediately after assessment is over. The report has suggested the importer should be fully conversant with the import requirements and procedures.

The airlines should make it mandatory for a shipper abroad to indicate the contact number of the consignee on the Airway Bill so that the importer can be intimated in advance and he can complete the required documentation on time.

Interest free period for payment of Customs Dutyafter assessment should be reduced from 7 days to 2 working days to force the importers to pay duty on time.

Inadequate and improper deployment of manpower and equipment at the custom house and other regulatory departments also cause delay in clearance.The report suggests that customs and other authorities concerned with clearance of imported cargo should work in two shifts on all days except national holidays. Green Channel facility should be expanded to allow more consignments to be cleared without examination.

To reduce the acute space shortage at airports the report has suggested certain guidelines for the Airport Authority of India. It should dispose off uncleared/unclaimed cargo immediately after 30 days with due intimation to the Customs authorities. Proper storage of goods in designated location in covered areas should be ensured.

Other recommendations include establishing friendly EDI links between Customs/AAI/Airlines/Agents with acknowledgments from Customs for IGM's received from airlines.Customs should permit immediate amendments to the IGM's. Rules and tariffs should be crystal clear to eliminate human discretion in interpretation.

Banking Division of the Department of Economic Affairs should examine in consultation with importers the reason behind the requirement of as many as three days for the release of documents for bank routed import consignments. Measures should be introduced to reduce this time to a couple of hours.Customs house agents must take cargo delivery the same day. Self handling airlines should effect transfer of international cargo to domestic carriers and vice versa round the clock. The Transshipment Permit Procedure at Delhi vis-a-vis those existing at Mumbai should be reviewed by Customs for standardisation.

Summing up the report, Jain says that the idea is to launch a two-pronged attack on the existing system -- improve efficiency and prepare it for an increase in trade volume under the forthcoming duty free WTO regime. Though the commerce ministry has assured thestudy group that its recommendations would be implemented within a two months, Jones airs the general apprehension, "No amount of reports will help if people are not ready to change their attitude."