Useful initiatives from CBIC to simplify trade for importers, exporters

Last week, the Central Board of Indirect and Taxes (CBIC) released its Customs Manual 2025, issued circulars regarding electronic filing and processing of Customs duty refund applications and furnishing single unified multi-purpose electronic bond to the Customs and notified the Customs (On -Arrival Movement for Storage and Clearance at Authorised Importer Premises) Regulations, 2025. The idea is to make the Customs processes easier to understand, simpler and more effective. 

The CBIC Customs Manual 2025 explains in simpler words the role of the Customs, various legal provisions and gives the gist of relevant departmental instructions till February 1 and thus acts as a useful introductory guide and practical reference book.  All importers and exporters benefit with this updated version. In its next edition, the CBIC should consider giving references to relevant case laws that have acquired finality and enhance understanding of the nuances, so as to help compliances. The CBIC should also consider publishing a similar helpful manual for the Goods and Services Tax. 

The new process of refund, which is optional till March 31, envisages filing refund application on ICEGATE, the Customs electronic portal, generation of application reference number (ARN) and on-line processes for scrutiny, communication and rectification of any deficiencies, sanction or rejection of refund claims and disbursements. The system of concurrent audit of refunds is now being replaced by post-audit. Option to request re-assessment of bill of entry is also being enabled through ICEGATE. 

Henceforth, importers will have the option of furnishing a single bond electronically, instead of furnishing separate bonds, for provisional assessment, clearances under advance authorisation, EPCG authorisation etc., warehousing and manufacture in bonded warehouses. The end-to-end digital solution now made available through ICEGATE enables electronic payment of stamp duty on the document, inclusion of additional obligations, on-line linking and verification of bank guarantee etc. The circular on this new facility gives in detail several procedures such as digital stamping, execution of bond, linking of e-bank guarantee, formats of the multi-purpose bond, bank guarantee and supplementary bond for addition of new events and bond value, list of scenarios with purpose code etc. This initiative to help the trade through the new multi-purpose bond processes is laudable but the CBIC should consider whether bonds are necessary at all when the relevant laws give the government enough powers to act against anyone in violation of the Customs or any other allied laws even in the absence of bonds. 

The new regulations notified last week give the importers of items falling under certain headings in Chapter 85 of the Customs Tariff, having recognitions as Tier-II, -III Authorised Economic Operators, the option to move the imported goods to their ‘authorised premises’ before taking a call on whether to clear them for home consumption or deposit them in bonded warehouses. Thus, in theory, the authorised importers can save on the costs of storing their goods at the container freight stations attached to the ports, airports, land Customs stations or inland container depots. How useful this option will be, in practice, is difficult to say. The new regulations will come into effect from a date to be notified by the government. 

The CBIC deserves appreciation for its initiatives  to  simplify  and digitise the import and export  processes,  improve  transparency and  adopt  the best  practices  with a view to  facilitate trade.

Email : tncrajagopalan@gmail.com