A potential recurrence of the 2011 trade data error could affect the Commerce Ministry

This time, the problem appears to be related to possible inaccuracies in the November 2024 gold import data. Overreporting of export data occurred in 2011 as a result of double counting and miss-classifications brought A commerce ministry official said Wednesday 18 Dec that the DGCIS (Directorate General of Commercial Intelligence and Statistics) has taken up detailed examination of the gold import data and that a reconciliation will be made with the data received by CBIC (Central Board of Indirect Taxes and Customs) after noticing an unusual surge in gold imports in November of this year, which caused the country’s trade deficit to reach a record.  Due primarily to requests from festivals and weddings, the nation’s gold imports in November increased fourfold to a record high of $14.86 billion. The trade deficit, or the difference between imports and exports, reached a record $37.84 billion in November as a result of the spike in gold imports.ht on by issues with the computer program that was being updated.

Jewelers and trade experts have differing views on the issue...According to the economic research tank GTRI, there is conjecture that some imported gold might have been tallied twice. However, the Global Trade Research Initiative (GTRI) stated that gold entering the Indian border through a bill of entry filed at Customs alone is the country’s import. It further stated that movements of gold within the country, such as for use in Gift City, SEZs, or EOUs (export oriented units), should not be considered imports and should not be included in the total import data.

Seaports and airports are the two main locations for imports and exports...

The Indian Customs EDI System (ICES) is now operational at 245 major customs locations, handling nearly 98 per cent of India’s international trade in terms of import and export consignments. Small and non-EDI ports, where data collection happens manually, cover only 2 per cent of the trade. All the data then comes to the server of ICEGATE. The Indian Customs Electronic Gateway (ICEGATE) is the national portal of Indian Customs of the Central Board of Indirect Taxes and Customs (CBIC) that provides e-filing services to trade, cargo carriers and other trading partners electronically.

Through this facility, Indian Customs offers a host of services, including electronic filing of the bill of entry (import goods declaration), shipping bills (export goods declaration), and e-payment of customs duty. ICEGATE is internally linked with multiple partner agencies including the RBI, banks, the Directorate General of Foreign Trade (DGFT), and the Directorate General of Commercial Intelligence and Statistics (DGCI&S).DGCI&S, an arm of the commerce ministry, takes data from ICEGATE. Non-EDI ports’ data directly comes to the DGCI&S. Kolkata-based DGCI&S is the official organisation for the collection, compilation and dissemination of India’s trade statistics and commercial information. About 70,000 exporters and importers account for India’s 90 per cent trade.

DGCI&S receives raw data from Customs authorities at ports, airports, and land borders, detailing goods traded, their values, quantities, origin or destination countries, and Harmonized System (HS) codes.The EDI system automates data transfer from customs to DGCI&S for timely and accurate processing. DGCI&S checks the data for errors, inconsistencies, and duplication, applying validation techniques to ensure accuracy.

The data is categorised by HS codes, commodities, sectors, and trading partners, and aggregated into monthly, quarterly, and annual reports, including details on specific product categories and bilateral trade. Processed data is analysed to provide insights on trade performance, trends, and deficits or surpluses.The finalised data is published on the Ministry of Commerce website and in reports like the Monthly Statistics of Foreign Trade of India and the Foreign Trade Statistics of India. Key information is also shared with policymakers, researchers, and international organisations and made available through the DGCI&S portal.