Gap Analysis on EDI Implementation in Cargo Sector and Cargo Clearance Procedures at Indian Airports: Issues and Challenges

Technology is productively being used globally to expand and upgrade trade transactions. As a result of technology modernization,  significant strides have been made in air transport trade in India which is competing with the elite group in growth of international and  domestic traffic. Air transport normally grows at a rate which is about twice the GDP growth rate. India aims to become the third-largest  aviation market by 2020 and the largest by 2030. It is already a fastest developing domestic aviation market in the fourth year in a row  with a growth rate of 18.6%. Air cargo is a significant sector in India, that is on a high-growth trajectory. This article presents gap analysis  in EDI implementation at some important airports in India handling cargo operations. It has been observed during the study that  gap between “cargo clearance vs facilitation steps taken” has reduced  and there is scope for further improvements for hassle free cargo  movement. RMS bills are mostly released by Customs using EDI. However, for exports, currently concerns are being faced like non-  payment  of customs duty through the banks in EDI system. The connections of EDI with systems of trade companions is in place but 100%  communication exchange as envisioned is yet to be completed. At certain joint venture major airports, EDI implementation amongst  Customs and Custodian is in position for Export(Import operations through Cargo Management System established by airport operators.  This system is suitable for integration with carriers, exporters/importers, cargo forwarders and customs traders. However, EDI message  exchange between entire regulatory authorities in the air cargo supply chain is not happening showing the way to old physical process at  some points, thus delaying cargo clearances. Interface is essential at the software and hardware level so as to effortlessly incorporate with  the present processes. EDI of different allied agencies are not completely inter-linked. Banking Gateways for online transfer/payment are  not available 24*7 hours at all cargo airports. The paper also proves that improvement in EDI system reduces congestion at cargo  terminals. The study establishes that reducing dwell time has improved through puts in the entire air cargo value chain. This paper  focuses on obstacles in successful execution of EDI in Indian cargo sector and recommends some vital policy mediations.