The Central Board of Indirect Taxes and Customs (CBIC) has rolled out a new facility enabling accredited merchants to move, store, and clear imported goods directly at their authorized premises instead of congested ports. This initiative, notified on Monday, aligns with the government’s vision of a 'trust first, scrutinize later' approach to trade facilitation.
Easing Port Congestion and Enhancing Importer Flexibility
The facility is exclusively available to importers classified under the upper tiers of the Authorized Economic Operator (AEO) scheme. This voluntary program, designed to streamline trade processes for importers, exporters, and logistics providers, offers tier-based privileges such as expedited shipment clearance, lower inspection rates, quicker tax refunds, deferred duty payment options, and acceptance of self-declaration for the origin of goods.
By allowing eligible importers to transfer goods directly to their authorized custom-bonded warehouses upon arrival, the new regulations significantly cut down paperwork and enhance supply chain efficiency. Their private storage facilities are now treated as an extension of the port, providing greater operational flexibility to large importers and manufacturers.
Customs Automation and Security Measures
As per the Customs (On-Arrival Movement for Storage and Clearance at Authorized Importer Premises) Regulations, 2025, importers will receive automated permission via the Customs system to store goods at their authorized premises after fulfilling specific procedural requirements. However, goods flagged for scanning or those with suspicious findings will be ineligible for this facility, ensuring continued vigilance against illegal trade practices.
Trade Facilitation vs. Market Disparity
Experts view this regulatory reform as a significant trade facilitation measure that streamlines import clearance and reduces logistical costs. However, some caution that restricting this facility to AEO Tier II and III importers may create market disparity, benefiting large corporations while sidelining smaller businesses.
"A phased expansion with stricter enforcement and enhanced duty collection safeguards is essential to ensure both efficiency and revenue security," said a tax expert, highlighting the need for a balanced implementation strategy.
Strengthening Trust-Based Governance
The move aligns with the government’s broader agenda to improve ease of doing business. Finance Minister Nirmala Sitharaman, in her February 1 Budget speech, announced the formation of an expert committee to review non-financial sector regulations, certifications, licenses, and permissions. The committee is expected to provide recommendations within a year, reinforcing a trust-based economic governance framework and reducing bureaucratic bottlenecks in inspections and compliance.
As India continues its push toward deregulation, policymakers anticipate that these measures will enhance trade efficiency and attract further investments, positioning the country as a more business-friendly destination in the global market.
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