In line with the Prime Minister’s Gati Shakti National Master Plan’s objectives of enhancing logistics infrastructure, efficiency, and promoting sustainable development, the Central Board of Indirect Taxes and Customs (CBIC) has introduced significant relaxations for Customs Cargo Service Providers (CCSPs).
Key relaxations outlined in Notification No.75/2024-Customs (N.T.) and Circular No. 22/2024-Customs, issued on November 7 and 8, 2024, respectively, include:
Reduced Insurance Period: Customs Cargo Service Providers (CCSPs) were previously required to insure goods stored in Customs areas for a period of 10 days under the Handling of Cargo in Customs Areas Regulations, 2009. To facilitate trade, this period has been reduced to 5 days. This change will enhance cash flow for CCSPs by reducing costs.
License Renewal Abolition: In recognition of well-established and compliant business entities that meet international operational standards (AEO), CCSPs that adhere to these standards will no longer be required to undergo the renewal process for handling goods under the aforementioned regulations. Their licenses have been synchronized with their AEO authorizations, streamlining the licensing process and simplifying operations for logistics operators.
These measures are designed to reduce operational costs and compliance burdens for CCSPs, who play a vital role in handling imported and exported goods. By implementing these changes, the Government aims to enhance logistics efficiency, reduce costs, and improve India’s position as a competitive player in global trade.
The CBIC’s efforts are expected to lead to reduced logistics costs, improved operational efficiency, and a strengthened India’s standing in the global trade arena.