For Customs Cargo Service Providers (CCSPs), the Central Board of Indirect Taxes and Customs (CBIC) has implemented significant relaxations. Enhancing logistics infrastructure, increasing efficiency, and fostering sustainable development are all objectives of the PM Gati Shakti National Master Plan.
Circular No. 22/2024-Customs dated November 8, 2024, and Notification No. 75/2024-Customs (N.T.) issued November 7, 2024, both grant these relaxations. They deal with the easing of the storage goods insurance period and the removal of the license renewal procedure. According to the 2009 Handling of Cargo in Customs Areas Regulations, CCSPs had to provide ten days of insurance coverage for items kept in customs areas.
As a trade facilitation measure, it has been decided to shorten it to five days. By cutting costs, this would improve the organizations’ cash flow,” the Ministry of Finance stated in a statement. Additionally, CCSPs that satisfy international operational standards (AEO) will no longer have to go through the renewal process for their licenses to handle goods under the Handling of Cargo in Customs Areas Regulations, 2009, in an effort to recognize reputable and compliant business entities.
Their AEO authorization has been synchronized with their licenses. As a result, logistics operators serving as CCSPs will find it easier to do business. According to the government, these steps are intended to lessen the operational expenses and compliance requirements for CCSPs, which are essential in managing imported and exported commodities. The modifications are a component of the government’s continuous endeavors to lower the expense and burden of compliance, enhance the effectiveness of EXIM activities, and promote international trade.
