Glitches in the customs system are throttling shipments at ports across India, and traders are paying high demurrage

Several shipments have been stuck at Indian ports due to disruptions in the customs IT system, resulting in importers having to pay high demurrage charges. According to trade reports, shipments worth Rs 3,000-5,000 crore are stuck across India.

Importers have claimed that the duty payment option in the ICEGATE system is still not working properly. Huge demurrage fees of around Rs 500-700 crore have been paid by traders/importers since April 1st.

The Customs Department had introduced a new updated IT system for customs payment by importers on April 1, including an electronic cash book payment system aimed at facilitating business transactions.

However, importers claim that they still face problems in making payments through the ICEGATE system. In response to the situation, customs authorities have started manual clearance of goods to facilitate trade.

Customs officials are conducting pan-Indian interactions with trade to address concerns and issues related to IT system malfunctions.

The government has focused on easing regulatory processes and improving trade facilitation to boost the country’s economy.

However, the current situation with the customs IT system is likely to have a negative impact on trade as importers continue to face difficulties in clearing their shipments.

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