Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Chaturvedi on Wednesday asked the customs department to accelerate the use of artificial intelligence, machine learning and real-time analytics to ease trade and lower compliance costs.
Speaking at an event here, Chaturvedi said the customs department wants to build a “unified, trusted taxpayer ecosystem” to bring greater synergy in compliance across Goods and Services Tax (GST), customs and other indirect tax systems.
The department’s ambition should be to work towards a near-touchless and digital experience, Chaturvedi said. Digital adoption will also reduce transaction costs, he added.
The CBIC chief asked the customs department to reach out to MSMEs so that small businesses can benefit from customs deferred-duty payment schemes such as the Eligible Manufacturer Importer (EMI) scheme and the Authorised Economic Operator (AEO) programme.
There is also a need for seamless inter-agency coordination across jurisdictions under the Mutual Recognition Arrangement (MRA) framework, Chaturvedi said. “The ultimate vision is a single, integrated, trusted freedom experience across all the cross-border areas,” he said.
The Indian customs department must expand its network of MRAs with other developed economies and integrate international standards, which will help India gain wider international recognition, the CBIC chief said. India has signed MRAs with 11 countries, with more in the pipeline, he said.
Chaturvedi also asked the indirect tax department to create a unified, trusted portal that rewards consistent good compliance across indirect tax requirements. This will help Indian traders gain easier acceptance as AEOs.
AEO is a voluntary compliance programme that enables Indian Customs to provide faster cargo clearance to certified businesses.
Chaturvedi called upon businesses to join the government’s EMI scheme announced in the Budget for FY27. The scheme provides a facility for deferred payment of customs duty to a new category of importers called Eligible Manufacturer Importers.
The scheme, which started on March 1, has seen around 1,000 businesses join so far, the CBIC chief said, adding that he expects more businesses to come forward.