Page 15 - Bonded-Warehouse-Automation

As demonstrated in the above diagrams, the bond commissionerate manages bond related
activities in traditional way. Present system has lack of transparency and scope for avoiding

responsibilities. Major disadvantages of present system are as follows:-
– Week legitimate control over the system

– Excessive use of paper (presently, ave use: daily 300 kg paper which takes to use

wood requiring around 24 trees to be cut)
– Lots of physical file handling with maximum risk

– License related work and other day to day processes (Renewal, Audit, Intra bond
transfer etc.) are very clumsy and have lots of steps to complete

– Correspondence with lien banks takes long time

– No proper controlling of Utilization Declaration (UD)
– Complex passbook management system

– No proper justification for Utilization Permission (UP)
– No proper justification for Import Entitlement/Quota

– Little synchronization in audit function
– Unaligned monitoring system over updated DEDO co-efficient

– Claim of duty & taxes for expired bonding goods take a long time and prone to

error
– Error in demand adjustment occur frequently

These problems sets the base for an initiative to automate the bonded warehouse system.
Considering the above mentioned demerits of the Present Bond System, National Board of

Revenue (NBR) committed to upgrade the bond management through Automation. Objectives of
the Bonded Warehouse Automation Project are as follows:

 Automating all activities of the Bond Commissionerates
 Getting online application and approval of all types of matters like-

 License

 UP
 UD

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