Government of India Announces Major Trade Simplification Initiative with Introduction of Single Unified Multi-Purpose Electronic Bond
Currently, importers and exporters are required to submit separate bonds, along with security, for every transaction at each port, which is time-consuming and costly. The new SEB will allow traders to submit a single bond electronically, choosing the obligations they intend to undertake in a common format. This bond can be submitted at any port of the trader’s choice via the ICEGATE portal.
New Delhi, 17 February 2025: In a significant move to streamline trade processes and enhance transparency, the Central Board of Indirect Taxes & Customs (CBIC) under the Ministry of Finance has launched the “Ekal Anubandh” project. This initiative encourages the use of a Single All-India Multi-purpose Electronic Bond (SEB) for importers and exporters, effectively replacing the need for multiple transaction-wise bonds at different ports. This project aims to simplify administrative procedures, reduce costs, and improve the efficiency of trade operations.
Currently, importers and exporters are required to submit separate bonds, along with security, for every transaction at each port, which is time-consuming and costly. The new SEB will allow traders to submit a single bond electronically, choosing the obligations they intend to undertake in a common format. This bond can be submitted at any port of the trader’s choice via the ICEGATE portal.
Key features of the SEB include the option to include additional obligations or amounts at later stages, electronic payment of stamp duty, and electronic execution of the bond through the National E-Governance Services Limited (NeSL). This eliminates the need for notary services and allows for the affixing of electronic signatures. Additionally, the SEB integrates with electronic Bank Guarantees (e-BG) for real-time document management, ensuring greater security and transparency.
The introduction of the SEB is expected to provide significant benefits, including reduced administrative burden, lower costs, and increased efficiency in trade operations. The CBIC has also streamlined the procedure for submitting electronic Bank Guarantees and integrated the process with the ICEGATE portal.
The “Ekal Anubandh” project is part of the government’s ongoing efforts to adopt best practices and leverage information technology to create paperless and contactless trade processes. This initiative is environmentally friendly, cost-effective, and more convenient, as it eliminates the need for physical signatures and paperwork, allowing for faster approvals and fewer delays.
The CBIC encourages importers, exporters, and customs brokers to adopt the SEB and e-BG to benefit from the new system. Detailed advisories on the SEB and e-BG modules are available on the ICEGATE website, and user feedback will be incorporated during the phased implementation of the project.
For further details, importers and exporters are advised to refer to the detailed advisories issued by the ICEGATE website. The CBIC has also requested that any difficulties be brought to the notice of the Board, and has urged Chief Commissioners to sensitise officers under their jurisdiction and conduct outreach activities with relevant stakeholders.
This major initiative by the CBIC is expected to enhance efficiency, security, and transparency in trade transactions, furthering India’s commitment to improving trade facilitation metrics and simplifying trade processes.
