Dak Ghar Niryat Kendra -- Introducing an online portal of DNK (Dakghar Niryat Kendra) for the betterment and ease in export for Small businesses ansd MSMEs. DNKs play a crucial role in simplifying the export process, especially for small and medium-sized enterprises (SMEs). Here are some key points summarizing the concept:
Initiative by Department of Posts and CBIC: DNK is an initiative jointly undertaken by the Department of Posts and the Central Board of Indirect Taxes and Customs (CBIC).
Electronic Filing of Portal Bill of Export: Small exporters can electronically file a Portal Bill of Export, making the export documentation process more efficient and digital.
Physical Parcel Presentation: After filing the necessary export documents electronically, exporters can present their parcels at the DNK for export.
Expansion of DNKs: As of now, 122 DNKs have been opened in Post Offices across India, with plans to open an additional 878 DNKs in the next two years. This expansion will make export services more accessible.
Challenges for Small Traders and MSMEs: While DNKs are being used by over 800 exporters, there are challenges in bringing small traders, artisans, and micro, small, and medium-sized enterprises (MSMEs) onto the DNK platform. Many of these entrepreneurs may lack the resources to create web portals for displaying products and accepting international e-commerce orders.
Regulatory and Compliance Challenges: Small businesses may find regulatory and e-commerce platform compliance requirements to be expensive or burdensome.
Trust Issues: International customers may find it difficult to trust web portals or small entities, which can affect their willingness to make international purchases.
High Private e-Commerce Portal Charges: Some private e-commerce portals charge high fees, up to 40% of the sale price of orders, which can be prohibitively expensive for small businesses.
Features:
Region wise AVAILABILITY
Unique Bar Code-Ease the flow for disposing the flow for disposing a consignment .
Real-Time Tracking System
Dashboard
Centralized system for the small Exporters
User/Business Profile
Integration with Navigation App
The Dak Ghar Niryat Kendra (DNK) initiative appears to be a promising effort to facilitate exports for small and medium-sized enterprises (SMEs) in India. However, there are some potential show stoppers or challenges that need to be addressed to ensure its success and broader adoption:
Lack of Digital Infrastructure: Many small traders, artisans, and MSMEs may lack the necessary digital infrastructure and skills to create and manage web portals for displaying their products and accepting international e-commerce orders. The absence of these capabilities can be a significant barrier to entry.
Regulatory and Compliance Complexity: SMEs may find it challenging to navigate the regulatory and e-commerce platform compliance requirements, which can be expensive and time-consuming. Simplifying and clarifying these regulations could encourage more participation.
Lack of Trust in Small Entities: International customers may be hesitant to trust web portals or small entities they are not familiar with, particularly when it comes to cross-border transactions. Building trust in the quality and reliability of products and services offered by SMEs is essential.
High Private E-commerce Portal Fees: The high fees charged by private e-commerce portals, which can be up to 40% of the sale price, can be prohibitively expensive for SMEs. This cost burden may discourage SMEs from using such platforms for exports.