The Central Board of Indirect Taxes and Customs (CBIC) is set to introduce an automated system, the Exchange Rate Automation Module (ERAM), to streamline the process of currency exchange rates for export and import transactions in 22 currencies. This new system is scheduled to be launched on July 4th, replacing the manual process of notifying exchange rates through notifications. The objective is to simplify the calculation of the value of imported and exported goods based on the exchange rate, as mandated by Section 14 of the Customs Act. The automated system will make it easier for importers and exporters to access the exchange rates online, facilitating trade operations.
The ERAM system is considered a significant step towards trade facilitation as it will provide advance online publication of exchange rates for the 22 currencies involved. This will enhance transparency and efficiency in the import and export process. The exchange rates will be available on the ICEGATE website twice a month, on the evening of the 1st and 3rd Thursdays, with the rates becoming effective from midnight the next day. Users will be directed to the ICEGATE website via a link on the CBIC website, where the published exchange rates can be viewed. This system aims to provide accurate and up-to-date exchange rate information to support financial decision-making in trading, investment, and international business.
The automated system of publishing currency exchange rates involves collecting real-time or near-real-time data from various financial markets and trading platforms, including forex brokers, banks, and global financial news services. By streamlining the data collection and processing, the system ensures that users have access to timely and reliable exchange rate information. This is crucial for financial decision-making in areas such as trading, investment, and international business transactions. The automation of these processes helps to manage APIs, data aggregation, and databases efficiently, making the operation of currency exchange rates smoother and more accurate.
The Exchange Rate Automation Module (ERAM) will cover 22 currencies, including the Australian Dollar, Qatari Riyal, Bahraini Dinar, Saudi Arabian Riyal, and Canadian Dollar, among others. These currencies are commonly used in international trade and commerce, making it essential to have accurate and readily available exchange rates. The system will also include currencies such as the EURO, Swiss Franc, US Dollar, Pound Sterling, and Japanese Yen, which are widely traded in the global financial markets. By providing comprehensive coverage of these currencies, the ERAM system aims to enhance the ease of doing business for importers and exporters.
The implementation of an automated system for publishing currency exchange rates reflects the government’s commitment to promoting ease of doing business and enhancing transparency in trade operations. By providing online access to exchange rates for 22 currencies, the CBIC aims to simplify the import and export process for businesses and facilitate trade activities. The availability of accurate and up-to-date exchange rate information will enable importers and exporters to make informed financial decisions and mitigate the risks associated with currency fluctuations. Overall, the introduction of the ERAM system is expected to streamline trade operations and support the growth of India’s international trade.
