The CBIC system ensures hassle-free imports

Importers accredited with the Central Board of Indirect Taxes and Customs (CBIC) to meet supply chain security standards accounted for almost a quarter of India’s goods imports in FY23, underscoring the increasing adoption of the system that ensures the smooth movement of goods should be in ports, according to Vivek Johri, Chairman of CBIC.

In fiscal 2023, more than a thousand companies received Authorized Economic Operators (AEOs) designations, Johri said in an update on the administration of indirect taxes published on the CBIC website. The AEO program is an important part of a framework to ensure security standards in the supply chain, which recognizes the importance of closer partnership between customs and other trade stakeholders, Johri said.

The AEO program offers accredited traders and companies certain privileges, including faster clearance of shipments at ports, lower inspection rates, faster tax refunds, the ability to defer customs payment, and acceptance of a self-declaration of origin of goods.

The idea is to make it easier for companies to trade across borders by first establishing their references through online document processing and physical verification. In addition, a number of measures have been taken to make compliance easier, such as removing the need to provide physical copies of documents for AEO applications, the update said.

“As a result of these measures, the average processing time for AEO applications has fallen from 160 days in November 2022 to 104 days in March 2023. In the last financial year, a total of 1089 entries were added to the AEO database.” Johri said in the update, adding that in April there were 5370 accredited companies and imports worth more than 1.72 trillion. “This represents about a quarter of all bills of entry filed in 2022-23,” the update reads.

India is currently in talks with other countries on mutual recognition of the AEO scheme. Mint reported Thursday that India is actively seeking deals with the United Arab Emirates, Australia, Russia, Japan and the East African Community recognizing the cherished trade privileges afforded to trusted exporters, importers and logistics players in a country that other country.

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