The Central Board of Indirect Taxes and Customs (CBIC) plans to step up the use of artificial intelligence (AI), machine learning (ML) and real-time analytics in Customs processes, said chairman Vivek Chaturvedi on Wednesday. This comes as it seeks to reduce compliance costs and move towards a largely digital clearance system.
“With cyclical and predictive application of technology, the ambition should be to move towards a near-touchless, near-digital experience,” Chaturvedi said at the Authorised Economic Operator (AEO) programme in New Delhi.
Greater use of technology would reduce the need for human intervention and lower transaction costs for businesses, he said.
Chaturvedi also called for a unified portal that could provide a consolidated view of businesses’ compliance history across indirect taxes. A trusted compliance record could help businesses gain easier access to facilitation measures, including the AEO programme.
The AEO programme accords trusted-trader status to businesses that meet prescribed standards on Customs compliance and supply-chain security. Eligible businesses receive various facilitation benefits, including faster cargo clearance and reduced risk-based intervention.
Chaturvedi outlined five areas that the Customs department needs to strengthen to deepen the integration of Indian businesses with developed economies. These include technology-led Customs processes, targeted support for businesses, wider mutual recognition arrangements (MRAs), greater coordination across indirect tax verticals and stronger engagement with international trade partners.
The department should adopt sector-specific outreach and a cluster-based approach to help businesses access trade facilitation measures, particularly smaller participants in the trading ecosystem, he said.
On MRAs, Chaturvedi said India needs to expand its network with developed economies while aligning its systems with international standards. India has signed such arrangements with 11 countries and discussions with more countries are under way, he said on the sidelines of the event.
MRAs allow Customs administrations to recognise each other’s authorised economic operator programmes, enabling compliant businesses to receive facilitation benefits in partner jurisdictions.
Chaturvedi also stressed the need for closer coordination among indirect tax authorities and with international trade partners to build greater trust in India’s trading ecosystem.
Meanwhile, he urged manufacturers to make greater use of the Eligible Manufacturer Importer scheme introduced in the Union Budget for 2026-27.
The scheme, which came into effect on March 1, allows eligible manufacturers to clear imported goods without paying Customs duty at the time of clearance. The duty can instead be paid on a monthly basis under the Deferred Payment of Import Duty Rules, 2016, helping businesses manage working capital.
Only around 1,000 businesses have joined the scheme so far, Chaturvedi said, adding that the department expects participation to increase.
Compliance requirements for joining the scheme have been reduced, and outreach programmes are planned to encourage wider adoption.
The Eligible Manufacturer Importer facility will be available until March 31, 2028.
