The Land Ports Authority of India (LPAI) is responsible for cross border activities around India and is controlled by the Ministry of Home Affairs (MHA). It was created in March 2012 and its main function is the power to develop, sanitize and manage the facilities for cross border movement of passengers and goods at designated points along the international borders of India.
LPAI will step up its control by taking over all Land Customs Stations around India. It will upgrade the integrated check posts (ICPs) into mini versions which will contain warehousing, weigh-bridge, parking facilities among several new services provided.
With this proposal, it becomes more controlled leading to fewer discrepancies and even malpractices such as under invoicing is avoided.
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Each mini ICP will cost less than INR 25 crore. These integrated check posts will now operate with as much freedom as airports and seaports. The customs will have a better scope of making decisions now to tighten cross border activities.
There are in total 5 ICP’s 2 near Bangladesh and Nepal,1 near the Pakistan border, 1 on Myanmar border(currently under construction) and 1 more near the Bangladesh border (currently under construction). 13 ICP’s are proposed to be developed.
A mini ICP will put into place facilities which can prevent under invoicing and other malpractices.
Statistics prove there’s plenty of unaccounted trade coming to the border countries. For example trade between India and Bangladesh is actually double the official estimates which are $7.5 billion.
This is not the first time LCS has been asked to be upgraded, the Sashastra Seema Bal (SSB) has been asking for it for a couple of years now.
Countries like Singapore, which is surrounded by countries in its borders has made exporting and importing easier by improving infrastructure and electronic equipment at the port.
China and Taiwan have made it easier for organizations to export by electronically issuing certificates of origin. This makes it faster and less complicated.
Sri Lanka made trade easier by developing a customs single window. This state of the art technology helps coordination better by reducing time wastage on submitting required documents and processing the same information as it ends up overlapping across different entities. A single electronic gateway allows trading partners to submit export, import and transit information which helps regulatory agencies better.