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Name : MIHIR KUMAR Roll No. : 3 MBA(EVE) 2010-2013 Paper No.

: SYST 28 (Internet and Telecom for Business)

Assignment on EDI in Custom House of India


Electronic Data Interchange (EDI) : is simply a set of data definitions that permit business forms, that would have been exchanged using paper in the past, to be exchanged electronically. This simple set of definitions has spurred a number of organizations to put in place an operational environment in which the exchange of electronic business forms substitutes for the exchange of paper forms. This has resulted, in some cases, in the establishment of an EDI environment, which arguably represents the most advanced state of electronic commerce today, causing some to view EDI and electronic commerce as one and the same. We view EDI only as a subset of electronic commerce, albeit a very important one. As such, EDI provides an excellent example of a working electronic commerce environment and is a good starting point for examining electronic commerce. Electronic data interchange aims at single point collection of data for use by various agencies participating in a common activity. OBJECTIVE OF EDI : The basic documents for transaction of business will be taken only once by one agency and other agencies will take the information from that agency, electronically, avoiding the need to either physically take the document from one office to another or keying in the data again and again involving the attendant problems of manual labor and errors creeping in at each stage of data entry. Remote EDI System : (RES) is a software package provided by government. Better solutions are also made by private IT companies. One of the famous products is Visual Impex. These software enable the CHAs (Custom house agents) to prepare the BE (Bill of Entry) and transmit the document to ICES (Indian Customs EDI System) over network. The BE processing status, queries and the final processed document with challan are transmitted back to CHA. BASIC STEPs OF EDI : 1. EDI Deamon process has to be started in the morning at the time of booting the system by the System Operator. 2. The process picks up the Bes from the front end system to the main server. System carries out the validation checks and negative acknowledgement is transmitted in case of error. BE No. is generated and transmitted back to CHA where no error found. 3. Queries raised by Customs Officers are transmitted to CHA. Reply is must. 4. Processed BE along with challan is transmitted back to CHA ADVANTEAGES OF EDI IN CUSTOMS : 1. Fast, Reliable, money friendly mode of work. 2. DBMS helps to easily store Bes and relevant data for long period of time. Customs wants 5 years data. 3. Doing Business Analytics on these huge amount of data is possible now

DISADVANTAGES OF EDI IN CUSTOMS : 1. Most of the time, central server in Delhi goes down causing interrupt. 2. As the Important document like BE is transferred via email attachment, there will always be some security issue

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