August 26, 2020: Container Supply Chains continue to rely on manual or semiautomated processes resulting in limited cargo visibility as containers move from Container Depot (CFS/ICD) to Port and vice-versa. The original shipment information (Commercial Invoice / Packing List) which has most of the data to create subsequent documents is exchanged manually. A Forwarder / Customs Broker has to access multiple stakeholder systems viz., shipping line portals, Custodian portals, Customs portal, bank portal etc., and re-enter shipment data multiple times. This is a time and resource consuming activity as a typical shipping export transaction utilises more than 120 original documents and their subsequent copies.
Container terminal industry is posed with higher operational complexities. Staying profitable in the era of weak demand growth and fluctuating global trade flows has made communication via a container management system between Ports, Container Terminals, Shippers, Forwarders, and Importers/Exporters, a necessity.
With an increase in the volume of shipments, it has become imperative that Ports, shipping lines, CFS/ICD and Customs are linked on a common system that promises flexibility, accuracy and ‘Ease of Doing Business’. Currently, the level of automation in the industry is diverse. Most ports do not possess single window EDI for trade facilitation. This affects the efficiency and profitability of container trade in many ways. Lack of advance shipment information results in the possibility of congestion at the port gate. Absence of real-time data exchange via a single window system translates to higher inventory in the supply chain, resulting in escalated logistics costs. Moreover, the security of container trade too is compromised as there is no common portal for the CFS or customers where they can track real-time status and milestone of their containers. Lack of a common portal for exchange of information amongst supply chain holders not only affects supply chain participants, but also impacts policy formation.
A robust EDI-based container digital exchange platform – CODEX – is designed to automate and digitally streamline EXIM container movement in and out of Ports. It facilitates proper communication, information exchange, connectivity and digital processing of key business transactions, which can be facilitated between all the stakeholders at the port and the related Logistics value chain.
The IGST tax refund process is streamlined with CODEX Port Community System. The process from the electronic VGM filing to EDI uploading, to generating of the discrepancy report is digitalised. The process that usually takes 90 days to complete, takes about 3 to 7 business days with CODEX. Exporters avail of instant IGST refunds with this digital platform. The challenge of liquidity for exporters, with CODEX, finds a solution.
