Higher onus on trade in new audit approach

Under the new scheme, transaction-based audit will be confined to a few transactions under the risk management system

The Central Board of Indirect Taxes and Customs (CBIC) is putting in place a  new audit approach, based on the experience gained over years in implementation of Post Clearance Audit (PCA). The latter is an initiative to adopt global best practices, promote a culture of voluntary compliance, reduce border controls and shift compliance checks to the post-clearance stage.

PCA was first introduced in 2005, when the Risk Management System was launched. It replaced the conventional system of concurrent audit at the time of clearance of import and export goods. By separating the