Introduction:

In a transformative partnership, the Central Board of Indirect Taxes and Customs (CBIC) and the Department of Post (DoP) have launched a scheme- the Hub and Spoke Model – an initiative aimed at promoting India’s exports through the postal route. This scheme harnesses the extensive postal network of 1.54 lakh post offices, using digital technology and apps and eliminates intermediaries for seamless exports via postal services.

Regulations and Guidelines:

To provide legal authority to Hub & Spoke Model:

  • Postal Bill of Export (PBE) Regulations were issued by CBIC on 9th December 2022.
  • Circulars explaining the export procedure in detail were issued to provide legal authority to the model.
  • Foreign Trade Policy 2023 supports the expansion of Dak Ghar Niryat Kendras to enhance cross-border e-commerce and empower MSMEs.

Hub and Spoke Model Overview:

  • Utilizes 28 FPOs as hubs and 1.54 lakh post offices as spoke network.
  • Exporters can file export documents electronically at the convenience of their home or office and deposit parcels at their nearest Post Office.

The process flow of the Scheme:

The process flow of the Scheme
Authorized Booking Post Offices:

CBIC and DoP have authorized 1007 Booking Post Offices across various states, ensuring comprehensive coverage.[- Circular No. 06/2023-Customs dated 01.03.2023, 20/2023-Customs dated 07.11.2023 and 27/2023-Customs dated 01.11.2023 refers.]

An overview of the functionalities offered by the PBE Automated System:

  • The Exporters can file the export documents i.e. Postal Bill of Export electronically using the link

https://dnk.cept.gov.in/customers.web.

This link will direct the user to the login page of ‘Dak Ghar Niryat Kendra –Customer Portal’

  • The Exporter will be required to register on above portal for initial login. The registration process involves OTP based authentication process and capturing of certain mandatory identifiers corresponding to the Exporter’s business profile. This is required for KYC purpose. A user ID and pass- word is provided for accessing the profile created to the user.
  • To book an article, an Exporter is required to login using his user ID and password. The Exporter can fill the required data fields of PBE Form such as description of consignment, export destination, ‘senders’ and ‘receivers’ details etc. under the ‘Article Booking’ sub menu.
  • If the Exporter chooses to utilize the services of authorized agent, the details of authorized agent shall also be provided.
  • On completion of the process, an Article ID reference number and PBE number shall be auto generated.
  • The Exporter shall print the CN 23 Form/ harmonized label corresponding to the export.
  • The portal also facilitates bulk upload of multiple consignment details and supporting documents such as licenses, certificates etc. essential for Customs clearance.
  • Once the article is booked on PBE portal, the exporter or his authorized agent has to physically deliver the article to the nearest authorized Post Office.
  • At the time of receipt of the article at authorized post offices, Officials from Department of Post shall verify the declaration, weight of the article, destination country etc. and collect necessary payment.
  • Department of post shall carry such article to the mapped FPO. At the FPO, Customs clearance shall be carried out by the Customs Officials and Let Export Order (LEO) shall be granted.
  • After LEO, Department of Post shall carry the article to the destination country.

Benefits of the Scheme:

First Mile Connectivity:

  • Connects MSMEs &   Artisans to global markets, particularly through e-commerce.

Reduced Physical Interface:

  • E-filing of declarations and parcel deposit at nearby post offices.

Enhanced Export Logistics:

  • Utilizes the vast network of post offices, reaching even the remotest parts of India.

Boost to India’s Exports:

  • Empowers MSMEs, Women’s self-help groups/Khadi and village units/Artisans and promotes e-commerce exports

The Hub and Spoke Model is a game-changing initiative that simplifies the export process, promotes small-scale Exporters, and leverages India’s extensive Postal network for global trade.

*****

(Republished with Amendment as on 18.11.2023 – Source- CBIC)

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