The Central Board of Indirect Taxes and Customs (CBIC) has introduced key relaxations for Customs Cargo Service Providers (CCSPs).This is in line with the PM Gati Shakti National Master Plan’s goals of improving logistics infrastructure, efficiency, and promoting sustainable development.
Central Board of Indirect Taxes and Customs (photo: official website)
The Central Board of Indirect Taxes and Customs (CBIC) has introduced key relaxations for Customs Cargo Service Providers (CCSPs).This is in line with the PM Gati Shakti National Master Plan’s goals of improving logistics infrastructure, efficiency, and promoting sustainable development.
These relaxations are provided under Notification No.75/2024-Customs (N.T.) dated November 7, 2024 and Circular No. 22/2024-Customs dated November 8, 2024. They pertain to the number of days for insurance of storage goods eased, and the Licence Renewal Process withdrawn. CCSPs were required to insure goods stored in Customs areas for a period of 10 days in terms of Handling of Cargo in Customs Areas Regulations, 2009.
“It has been decided to reduce it to 5 days as a trade facilitation measure. This will enhance the cash flow for the entities by reducing the cost,” the Ministry of Finance said in a statement. Further, in a move to acknowledge well-established and compliant business entities, CCSPs that meet international operational standards (AEO) will no longer be required to undergo the renewal process of their licenses for handling goods under the Handling of Cargo in Customs Areas Regulations, 2009.
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Their licenses have been made synchronous to their AEO authorisation. This will result in Ease of Doing Business for logistics operators working as CCSPs. The ministry said these measures aim to reduce operational costs and compliance burdens for CCSPs, that play a crucial role in handling of imported and exported goods. The changes are part of the Government’s ongoing efforts to reduce the cost and compliance burden, improve the efficiency of EXIM operations, and facilitate global trade.
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