Trade Data Revision: Ministry of Commerce Blames SEZ Double-Counting for Errors

In a significant move towards improving data accuracy, the Ministry of Commerce and Industry has revised India’s trade data for April- November 2024. This revision follows a reconciliation exercise initiated by the Directorate General of Commercial Intelligence and Statistics (DGCI&S) to address discrepancies in the reported figures for imports of precious metals.

The Reason Behind the Revision

The provisional Quick Estimates (QE) of EXIM data for November 2024, released on 16th December 2024, showed an unusual surge in precious metals imports. Upon investigation, it was discovered that the data migration process from the Special Economic Zone (SEZ) Online System to the Indian Customs Electronic Gateway (ICEGATE) caused the figures to be counted twice: once for imports into SEZs and again for their clearance into Domestic Tariff Areas (DTA).

This dual counting arose from ongoing technical glitches in the migration process. Both SEZ Online and ICEGATE currently transmit data separately to DGCI&S, leading to inconsistencies.

Trade Data Collection: A Complex Process

India’s trade data is collated from over 500 locations, encompassing approximately 2.5 lakh daily transactions from sea ports, land ports, airports, and inland container depots. Until recently, data from over 100 SEZs was captured by SEZ Online, while other ports utilised ICEGATE. However, the shift to a unified data transmission mechanism via ICEGATE aimed to streamline this process.

Despite this, incomplete migration and technical challenges have required DGCI&S to continue receiving data from both systems. These challenges underline the complexity of maintaining accurate and timely trade statistics in a rapidly evolving digital landscape.

Revision and International Practices

Revisions to trade data are not uncommon globally. In statistical systems, initial estimates are often subject to adjustments as more accurate or delayed data becomes available. The DGCI&S conducts routine revisions to improve data quality and ensure compliance with international norms.

For the current revision, data for April to November 2024 has been updated to reflect the first phase of reconciliations. This revised information is now accessible on the DGCI&S Data Dissemination Portal.

Steps Towards Robust Data Mechanisms

A dedicated committee, comprising stakeholders from DGCI&S, DG Systems (CBIC), and SEZs, has been formed to establish a more reliable framework for publishing trade statistics. This collaboration aims to address technical challenges, prevent future discrepancies, and uphold the balance between data accuracy and timeliness.

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