Economy
CBIC gives trusted importers greater flexibility in customs clearance
Summary
A new CBIC regulation permits accredited importers to manage imported goods at their facilities, easing port congestion and supporting the 'trust first' approach. This initiative is limited to authorized economic operators tier II and III importers
The Central Board of Indirect Taxes and Customs (CBIC) has introduced a new facility for accredited merchants to move, store, and clear imported goods at their authorized premises instead of at ports.
The move seeks to reduce congestion at ports and give greater flexibility to importers who are authorised economic operators (AEOs).
The regulations notified on Monday take forward the government’s promise of ‘trust first, scrutinise later’ policy.
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This facility is available for those in the upper tiers of the AEO scheme—a voluntary programme that makes trade hassle-free for importers, exporters and logistics players.
The privileges AEOs get vary as per the tier of their accreditation and include quicker clearance of shipments at ports, lower inspection rate, quicker tax refunds, facility for deferred duty payment and acceptance of self-declaration of origin of goods.
Facilitating supply chain security
It also facilitates supply chain security while facilitating trade.
The norms notified on Monday by CBIC called Customs (on-arrival movement for storage and clearance at authorised importer premises) Regulations, 2025 allow importers to move consignments on their arrival to their authorised custom bonded warehouses, before customs clearance.
This reduces paperwork for merchants with tier two and tier three AEO accreditation and enables faster goods clearance while reducing congestion at ports. Their private storage facility is treated like an extension of the port, making trade easier for large importers and manufacturers.
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The notification said that the Customs automated system will grant permission for the storage of goods at the authorised premises upon their arrival and completion of certain procedures. This facility, however, will not be applicable if the goods are selected for scanning and anything suspicious is found.
The new regulation is a significant trade facilitation measure that streamlines import clearance and reduces costs, said Rajat Mohan, senior partner at AMRG & Associates, a chartered accountancy firm.
Mohan said that limiting this facility to AEO tier II and III importers creates market disparity, favouring large corporations while excluding smaller businesses.
Phased expansion essential
“A phased expansion with stricter enforcement and enhanced duty collection safeguards is essential to ensure both efficiency and revenue security," said Mohan.
Finance minister Nirmala Sitharaman had said in her 1 February budget speech that an expert committee will review all non-financial sector regulations, certifications, licenses, and permissions.
This committee is expected to make recommendations within a year. The idea is to strengthen trust-based economic governance and take transformational measures to enhance ‘ease of doing business’, especially in matters of inspections and compliances, Sitharaman said then. The government hopes that deregulation will help in attracting further investments.
