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Digital certificate of origin system
Why is it in the news ?
- Commerce Minister launched the common digital platform for the issuance of certificates of origin and a steel import monitoring system (SIMS).
- The Minister also provided more details about the enhanced export credit insurance scheme for banks that lend working capital to exporters.
- The new export credit insurance scheme will be called ‘Nirvik'.
More in the news
- For exports to countries with which India has free trade agreements (FTA), exporters have to show a certificate that the consignment originated in India.
- With the launch of the common digital platform for the issuance of certificates of origin, now, these certificates can be obtained online and all the issuing authorities will be on the same portal.
- India was speaking to its trading partners and the countries it had FTAs with to ensure they accepted the digital certificates.
- About Export credit:
(1) At the moment, the Export Credit Guarantee Corporation (ECGC) gives a cover of 60% of the loss to banks.
(2) The new scheme will give 90% coverage of the principal and interest of the loan for pre- and post-shipment credit, and half of this will be provided in 30 days.
(3) Also, the claim inspection would be waived for up to ₹10 crore. The previous limit for document inspection was ₹1 crore.
(4) For claims higher than this amount, inspection of bank documents and records by ECGC officials will be mandatory.
Source
The Hindu.