CBIC Likely To Introduce Automated System Of Publishing Daily Currency Exchange The move would help capture daily exchange rate fluctuations and help importers and exporters to precisely calculate customs duties based on daily exchange rate
By Teena Jose •
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The Central Board of Indirect Taxes and Customs (CBIC) is likely to soon introduce a system of publishing daily currency exchange rates on the integrated customs portal, replacing the existing system of notifying rates fortnightly, according to a PTI report. The move would be claimed to help capture daily exchange rate fluctuations and help importers and exporters to precisely calculate customs duties based on daily exchange rate.
Currently, CBIC manually notifies exchange rates of 22 currencies every fortnight — 1st and 3rd Thursday of a month — based on rates obtained from the State Bank of India (SBI). The rate notified comes into effect from midnight of the following day, as per the report.
"The entire process would be automated, beginning with forwarding of exchange rate data by SBI to ICEGATE. The exchange rates received from SBI every day shall be adjusted to the nearest five paise and integrated with Indian Customs EDI System (ICES) and published on Indian Customs National Trade Portal (ICEGATE) by 6:00 pm," the report quoted an official aware of the matter.
"In order to capture exchange rate fluctuations more closely, the CBIC has decided to publish exchange rates of 22 currencies on ICEGATE website on a daily basis. Stakeholder consultations are on and the system would be introduced soon," the official told PTI.
Furthermore, the report added that as per the plan, on holidays when SBI doesn't publish the rates, the prevailing rates shall apply the next day. At present, after fortnightly notification, if the exchange rate of a currency fluctuates more than ±5%, the rate for that currency is re-notified from the following day.
The new system includes a contingency plan in case of any technical snags or failures in electronic transmission, ensuring uninterrupted accessibility of exchange rates at any given time, it added.
