SWIFT and e-SANCHIT for Customs Clearances

The worldwide shift towards digitisation has altered the conventional methods of documentation, especially in commerce, banking, and customs operations. Document-based systems that do not use paper, such as SWIFT (Society for Worldwide Interbank Financial Telecommunication) and e-SANCHIT (Electronic Storage and Computerised Handling of Indirect Tax Documents), are byproducts of this digital era. These sites intend to replace inefficient paper-based processes with efficient, secure, and streamlined electronic alternatives.

SWIFT allows safe, standardised messaging between banks and financial institutions worldwide and is thereby an essential tool for international capital transactions and trade finance. It cuts the inefficiencies and errors of handwritten paper documents, resulting in enhanced transparency and efficiency in financial dealings. In contrast, e-SANCHIT, being an Indian Customs CBIC solution, allows importers, exporters, and other stakeholders to electronically file customs-related documentation. The initiative is in line with the Government of India’s highest priority area of “ease of doing business” by minimising physical interaction, time saving, and hassle-free customs clearance.

Both e-SANCHIT and SWIFT aim at the benefits of digitisation, including faster processing, lower paper consumption, improved data security, and higher regulatory compliance. With increasingly more business houses adopting such technology, the dream of a fully digital and paperless setup now appears to be an achievable goal and is turning the world into a more efficient and competitive place.

What is SWIFT and E-SANCHIT in regard to Customs Clearances?

In foreign trade, it is important to have transparent and clear customs clearance procedures. SWIFT and e-SANCHIT are imperative electronic solutions that simplify this process.

SWIFT (Single Window Interface for Facilitating Trade) is a program introduced by Indian Customs, enabling traders to submit customs clearance documents electronically through a unified window. This system interfaces with other government departments involved in the clearance process, and there is no need for traders to approach each department separately. By allowing Risk Management Systems (RMS) to electronically process documents and perform checks for inconsistencies, SWIFT accelerates the clearance process, reduces delays, and reduces paperwork.

e-SANCHIT (electronic Storage and Computerized Handling of Indirect Tax Documents) is another facility of SWIFT that enables importers, exporters, and brokers to file supporting documents such as invoices, packing lists, and certificates online. These documents are now being digitised and verified by customs officers. The e-SANCHIT system considerably reduces the requirement of physical filing of documents, thereby accelerating the process of customs clearance and offering greater transparency. Both SWIFT and e-SANCHIT play a vital role in propelling India’s path towards a digital, paperless world at customs. Both facilitate

documentation, reduce clearance times, and make business transactions easier, thus streamlining cross-border trade in line with international best practices.

Applicability and Eligibility for SWIFT and E-SANCHIT

SWIFT and e-SANCHIT are the cornerstones of India’s digital customs platform, facilitating global trade by cutting time, cost, and complexity.

SWIFT

Applicability

SWIFT (Single Window Interface to Facilitate Trade) facilitates filing and clearance of documents with Partner Government Agencies (PGAs) such as FSSAI (Food Safety and Standards Authority of India), AQCS (Animal Quarantine and Certification Services), PQIS (Plant Quarantine Information System), Drug Controller, Textile Committee, and Wildlife Crime Control Bureau. SWIFT is applied at major customs locations which have implemented single-window clearance and integrated risk assessment.

Eligibility

1. Importers and exporters requiring PGA clearance can avail themselves of SWIFT.
2. Customs Brokers (CHAs) may file documents on behalf of the traders;
3. Users shall possess a valid Importer Exporter Code (IEC),
4. They must be registered with ICEGATE (Indian Customs Electronic Gateway) and hold a valid Digital Signature Certificate (DSC).

E-SANCHIT (Electronic Storage and Computerized Processing of Indirect Tax Documents)

Applicability

e-SANCHIT is utilised for uploading supporting documents required for customs clearance. It applies to shipping bills (exports) and bills of entry (imports). PGAs that require documents like test reports and certificates. It functions across all ports and locations enabled by ICEGATE in India.

Eligibility

All registered users of ICEGATE, including importers, exporters, and customs brokers. To use e-SANCHIT, you need to:

1. Have a valid IEC.
2. Have a Class 2 or Class 3 digital signature certificate.
3. Get registered on www.icegate.gov.in.
4. PGAs and customs officials can access documents using the e-SANCHIT interface for processing and verification.

Features and Importance of SWIFT

SWIFT is one of the core pieces of India’s digital customs environment, allowing for faster, paperless, and more streamlined cross-border trade.

Features of SWIFT

1. Offers a one-stop interface for regulatory clearances – SWIFT allows traders to electronically submit regulatory documents via one gateway instead of going to various government offices. It also connects with PGAs like FSSAI, Drug Controller, and Plant/Animal Quarantine.
2. Integrated Risk Management System (RMS) – SWIFT integrates with Customs’ RMS, which automates document distribution to the concerned PGAs. RMS identifies the risk and decides on physical inspection, thus doing away with manual intervention.
3. SWIFT eliminates physical file movement and follow-ups by allowing electronic communication between Customs and PGAs.
4. Document Upload through e-SANCHIT – e-SANCHIT facilitates SWIFT, where importers and exporters can upload electronically signed documents that can be accessed by the PGAs at the click of a button.
5. Less Duplication of Information – Pre-submission mutual sharing of common data fields among agencies eliminates repetition of submission.
6. Instant Status indications – ICEGATE furnishes users with immediate indications about the processing and status of documents.
7. Time Limited Decision Taking – PGAs need to process and decide within laid out timescales, enhancing accountability and accelerating clearance.

Significance of SWIFT

1. Enhances Ease of Doing Business – SWIFT rationalises clearances by multiple government agencies, thus raising India’s rank in world indexes.
2. Saves Time and Costs on Clearances – Traders gain time and resources through avoidance of physical documentation, travel, and handling inefficiencies.
3. Increases Transparency and Efficiency – Electronic monitoring of document movement reduces corruption and enhances process transparency.
4. Facilitates Make in India and Trade Facilitation Objectives – SWIFT enables import export operations, encouraging domestic production and foreign trade.
5. Green Operations – Reducing physical paperwork encourages sustainability by reducing paper consumption.
6. Enhances Inter-Agency Coordination – SWIFT integrates customs and other regulatory agencies, ensuring compliance and consistency in trade approvals.
7. Getting Ready for Global Standards – Brings India’s customs procedures in line with global best practices, including those recommended by the World Customs Organisation.

Features and Importance of E-SANCHIT

e-SANCHIT is an essential element of the digital customs infrastructure, transforming customs documentation to be quicker, more transparent, and efficient. It is supportive of SWIFT and is a key to India’s vision for modernising and digitising cross-border trade transactions.

Features of e-SANCHIT

1. Facilitation of smooth document uploads – e-SANCHIT digital document upload portal facilitates importers, exporters, and customs brokers to upload supporting documents for customs clearance electronically, like invoices, packing lists, certificates of origin, test reports, and licenses.
2. Quick access to documents – Complete integration with SWIFT and ICEGATE facilitates smooth document movement between stakeholders, PGAs, and customs.
3. Digitally Signed Documents – Upload PDF documents with digital signatures for authenticity, non-repudiation, and legal validity.
4. Document Reference Number (IRN) – The uploaded document receives an IRN (Image Reference Number) upon which it may be associated with the Bill of Entry or Shipping Bill.
5. Faster and better evaluation and verification – PGA and Customs Officers access the uploaded documents online, minimising physical presentation and human analysis.
6. Simple User Interface – Easy to use e-SANCHIt interface for upload, tracking and document management lessens procedural discrepancies.
7. Document Repository – Offers a master repository for customs-related documents, allowing traceability and archiving for audits and compliance inspections.

Importance of e-SANCHIT

1. Enables Paperless Customs Clearance – Radically reduces reliance on physical documentation, thereby allowing a fully digital clearance process.
2. Enhances Efficiency for PGAs and Customs – The electronic authentication and processing of documents by PGAs reduce manual workload and promote greater coordination between agencies.
3. Compliant with Environmental Sustainability – Encourages a green working environment with reduced paper usage and storage space.
4. Saves time and cost of transactions by avoiding the necessity of physically submitting documents to customs offices. This results in faster processing and lower compliance costs.
5. Enhances Transparency and Accountability – Paper trailed electronically and stamped reduces the risk of manipulation or loss, thus resulting in higher transparency and governance.
6. Enhances ‘Ease of Doing Business’ – e-SANCHIT enhances documentation, enhancing India’s international rankings in the ‘Trading Across Borders’ category.
7. Global Standards Compliant – Adheres to international best practices, comprising trade facilitation and electronic customs guidelines of the World Trade Organisation (WTO) and the World Customs Organisation (WCO).

Conclusion

SWIFT and e-SANCHIT, their introduction constitutes an important step in India’s modernisation towards an entirely digital and paperless customs regime. Both measures have revolutionised import and export clearance operations by replacing labor-intensive manual processing with streamlined electronic technology. The Indian Customs has improved efficiency, transparency, and accountability across the trade value chain by bringing together different Partner Government Agencies (PGAs) onto a single platform using SWIFT and facilitating electronic filing of required documents through e-SANCHIT. These platforms have not only lowered clearance times and operating costs but also enhanced compliance, traceability of documents, and environmental efficiency. Traders are no longer required to submit physical papers or take several trips to the customs offices, significantly reducing the procedural requirements. This is in line with the overall objectives of the government under policies like ‘Ease of Doing Business,’ ‘Digital India,’ and ‘Make in India.’ In addition, SWIFT and e-SANCHIT bring India into conformity with international trade facilitation standards put forth by the WTO and WCO, thus improving the global competitiveness of Indian exports. With increasing volumes of trade and advancing digitisation, these systems will remain central in promoting a wiser, swift, and open customs administration tomorrow.

Related Services

• IEC Registration Online
• DSC Registration Online
• ICEGATE Registration Online