EDPMS or Export Data Processing and Monitoring System is an online import-export software in India launched by the RBI in 2014 to monitor all the transactions between the bank and exporters and maintain transparency and authenticity in the export-import business. The main advantages of this software are:
- Seamless recording and tracking of export-import data
- Effective handling of shipping bills
- Higher end-to-end efficiency
EDPMS – A Comprehensive Solution for Exports Management
The RBI notification regarding EDPMS (Dated May 26, 2016) states that EDPMS will have the capability of enabling banks to download the shipping bills or softex forms issued by export agencies and the bills of entry issued by ports.
The data can then be cross-checked with the data corresponding to the funds received in your bank accounts from the exporting company. Therefore, banks can track a particular export consignment efficiently. Furthermore, the software also contains a cautioning and de-cautioning list of exporters, which can be accessed by AD (Authorized Dealers) on a daily basis.
Authorized Dealers – Key Cogs in the EDPMS Machinery
Authorized Dealer banks are banks with an RBI license to primarily buy and sell foreign currencies for specific purposes. However, in terms of EDPMS, AD banks have some additional responsibilities, such as:
- To examine the requests that are required to grant EDF (Export Declaration form) waiver
- To report all the inward remittances, advance remittances, and old inward payments received for the export of products to EDPMS
- To report the electronic Foreign Inward Remittance Certificates to EDPMS
- To ensure that the advances received by exporters get utilized only for export purposes
Exporters are given three years by the AD banks to prove their record as satisfactory and be eligible to receive long-term export advances, spanning about 10 years. When an exporter receives advance payment from a particular buyer outside India, they must complete the shipments of the goods within one year.
Caution listing is the process of listing those exporters whose data is not captured by the EDPMS software. Once on the list, exporters packing credit are turned down, and the ‘non-letter of credit bills’ get retained, leading to extra cost and demurrage or holdup charges.
Shipping Bill – an Important Document in Exports Management
A Shipping Bill is an important document required by the customs authorities for the clearance of goods. It is issued by the shipping agent and contains some certificates for all the parties, including the ship’s owner, the seller, and the buyer. This bill also enables the exporters to track the status of their payments.
The Final Word
Thus, EDPMS and IDPMS software are efficient tools for the RBI as well as the companies involved in the import-export market since they have enhanced the timely monitoring of export-import data and tracking of shipping bills and matching payments. And the systems are open to change: for instance, in October 2020, the central bank discontinued the automatic caution listing of exporters from the EDPMS, with an aim to enhance the flexibility at the disposal of exporters.
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