JANUARY 20, 2025

By Rajat Dosi, Partner, RSA Legal Solutions

IN the year 2022, the Indian Government formulated the "Customs ONE" plan as part of its ambitious India@2047 vision¹ to ensure that customs clearances, both import and export, are completed within an hour of arrival at any Indian customs seaport or airport. This plan sought to address longstanding challenges in customs operations and was aimed at enhancing efficiency and transparency in customs clearances. Various initiatives have been introduced to achieve this goal, few of which are highlighted below.

24x7 Customs Clearance

- The 24x7 Customs Clearance initiative by the Indian government aims to facilitate uninterrupted customs services for imports and exports at designated customs ports. This initiative has been implemented at several customs seaports, airports, ICDs and even few courier locations, which allows for continuous customs clearance, significantly speeding up the customs processes. This welcome initiative ensures that goods can be cleared at any time, day or night.

Shift to Paperless Customs Compliances

- A lot of initiatives have been taken by the Indian Government focusing on digitizing customs regulatory processes to minimize the interaction between customs authorities and other stakeholders². This transition to a paperless system is essential for improving efficiency, reducing costs, and enhancing compliance in customs clearance operations. Few such initiatives have been highlighted below:

- ICEGATE: The Indian Customs Electronic Gateway (ICEGATE) serves as the central digital interface for customs operations, enabling electronic filing of documents, real-time status tracking, and online duty payments. This platform also enables seamless communication between customs, transporters, banks, and regulatory bodies, ensuring timely clearance of goods.

- SWIFT: The Single Window Interface for Trade (SWIFT) system allows businesses to submit standardized information through a single portal (single integrated customs electronic declaration), simplifying the regulatory process. Importers and exporters can lodge all their clearance documents through this one online portal, eliminating the need for multiple submissions to different agencies.

- E-Sanchit: E-Sanchit stands for e-Storage and Computerized Handling of Indirect Tax Documents. This is a digital platform that allows importers to submit all necessary documents electronically for customs clearance. This platform reduces the need for physical paperwork and minimizes the interface between customs authorities and other stakeholders, streamlining the entire documentation process.

- ICETRACK: ICETRACK is a mobile application that enables users to track the status of their customs documents in real-time. The app provides updates on document verification and clearance processes, facilitating better communication and transparency for businesses involved in international trade. In essence, this feature helps businesses stay informed about the progress of their shipments.

- Other Initiatives: A number of documents which are required in the customs clearance process are being generated electronically such e-LEO SB (Let Export Order), e-Gatepass, and e-OOC (Out of Charge). These are all part of efforts to reduce paperwork and improve efficiency in customs operations

Turant Customs

- Faceless Assessment: Launched as a core component of Turant Customs, faceless assessment allows customs officers to evaluate and approve shipments remotely. This system reduces physical interactions between customs officials and other stakeholders, promoting efficiency and transparency in the customs clearance process.

- Establishment of Turant Suvidha Kendras (TSKs): TSKs have been set up at all customs stations to assist stakeholders with document submissions, queries, and compliance requirements. These centers facilitate the implementation of faceless assessments and provide a point of contact for importers and exporters

- Automated Clearances: The introduction of automated systems for processing bills of entry (BoE) has been another significant step. This allows for quicker approvals based on risk assessments, further expediting the customs clearance process. In this, the customs authorities employ advanced risk management techniques to identify low-risk shipments that can be cleared quickly or rather automatically while maintaining stringent checks on high-risk consignments.

- Pre-payment Customs Compliance Verification (PCCV): This initiative aims to streamline the customs clearance process by allowing all customs formalities to be completed in advance prior to the payment of duties. This means that once compliance checks are conducted, the final clearance is allowed immediately on the payment of applicable duties. This system allows completion of customs compliances in parallel while importer takes time to make the customs duty payment. In the National Time Release Study (NTRS) 2024 it has been reported that final clearance can occur within 3 minutes after duty payment. This significant reduction in processing time enhances the overall speed at which goods can be cleared through customs.

- ICE-DASH (Indian Customs Ease of Doing Business Monitoring Dashboard): ICE-DASH is an innovative digital platform which has been launched to enhance transparency and efficiency in customs operations. ICE-DASH serves as a monitoring tool that provides real-time data on customs clearance times for import and export cargo across major customs stations in India. This is an effective tool that helps businesses compare clearance times across ports and plan their logistics accordingly.

Direct Port Delivery (DPD)

- DPD allows certain approved importers to clear their cargo directly from the customs port within 48 hours of arrival, bypassing the traditional Container Freight Station (CFS) model. This initiative is being slowly expanded to all major customs ports across India. By eliminating the need for routing the imported consignment through CFS, DPD reduces logistics costs for importers and improves supply chain efficiency.

Direct Port Entry (DPE)

- This is an initiative by the Indian government aimed at streamlining the export process by allowing factory-stuffed containers to move directly to the port terminal without intermediate handling at Container Freight Stations (CFS). This system is designed to enhance efficiency, reduce costs, and improve the overall ease of doing business in India.

Indian Customs Compliance Information Portal (CIP)

- The CIP provides free access to information on customs procedures and regulatory compliance for about 12,000 Customs Tariff Items. Users can input either the Customs Tariff Heading or a description of goods to access step-by-step procedures and compliance requirements for imports and exports.

Common Digital Platform for Certificates of Origin (CoO)

- The Indian Government has setup an online platform for issuance of Certificates of Origin certificates (CoOs). This platform provides a single access point for exporters to obtain CoOs from authorized agencies, eliminating the need for physical visits. Thus, it minimizes transaction times and costs related to CoO issuance, thereby enhancing the overall utilization of Free Trade Agreements (FTAs) benefits by Indian exporters.

Other note-worthy initiatives

- There are several other initiatives taken by the Indian Government, few of which are being mentioned below, for ready reference:

- Electronic Cargo Tracking System (ECTS) is a technology-driven solution, based on GPS technology, designed to monitor and track the movement of cargo during transit, particularly through customs borders;

- Electronic Cash Ledger (ECL) is a walled based deposit with the customs, which can be used by an assessee for real time payment of customs duties;

- Anonymised Escalation Mechanism (AEM) is an initiative, operational through the ICEGATE system, specifically designed to address grievances related to delays in the assessment of Bills of Entry under the Faceless Assessment system. The AEM allows registered users on ICEGATE, including importers and customs brokers, to submit their grievances anonymously, regarding delays in the assessment of their Bills of Entry.

- Risk Management System (RMS) is a strategic initiative which runs in the background, while allowing customs clearances. This system uses data analytics to assess the risk associated with shipments. It seeks to significantly enhance the efficiency of customs operations by optimizing the screening process for cargo. Practically, it helps customs authorities by allowing them to focus their resources on high-risk consignments while expediting the clearance of low-risk shipments.

National Time Release Study Report

Time Release Study (TRS) is a study conducted by the Indian Government which acts as a performance measurement tool that aims to present a quantitative measure of cargo release time. In the National Time Release Study (NTRS) 2024, the following improvements have been indicated in the customs clearance mechanism which clearly points to the fact that the above initiatives are leading to the desired results (charts borrowed from the said report / study):

The Indian Government's initiatives under the "Customs ONE" plan represent a significant leap towards modernizing customs operations, enhancing efficiency, and fostering a conducive environment for international trade. By implementing 24x7 customs clearance, digitizing processes, and introducing innovative systems like Turant Customs, India is poised to streamline its trade mechanisms significantly. As these initiatives continue to evolve, they not only promise to reduce delays and costs but also position India as a competitive player in global trade.

Engaging actively with these new systems will be crucial for stakeholders looking to leverage these advancements in customs operations effectively.

[The views expressed are strictly personal.]

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¹ To make India one of the world's top three economies by the year 2047

² Importers, Exporters, CHA, etc