Speeding up trade: Operational gaps in cargo clearance need attention

India in recent years made notable improvements in its logistics ecosystem, driven by advancements in port infrastructure, multimodal connectivity, digital integration, and a renewed emphasis on trade facilitation. The country had climbed six spots on the World Bank’s logistics performance index, 2023, moving to 38th position globally. The jump reflects the early impact of initiatives such as the PM Gati Shakti and Unified Logistics Interface Platform. In this regard, the recently released National Time Release Study (NTRS) 2025, conducted by the Central Board of Indirect Taxes and Customs, provides granular data on how long it takes for import and export cargo to be cleared through various Indian ports. Time-bound cargo movement allows exporters, especially small and medium enterprises, to meet global timelines, reduce costs, improve trade competitiveness, and integrate with global value chains. 

Trade-facilitation reforms, including digitisation, pre-arrival processing, and the Authorised Economic Operator (Aeo) programme, are steadily reducing average release times (ARTs). According to the study, gains were seen at seaports and air-cargo complexes (ACCs), where ARTs fell significantly. Relative to 2024, Inland Container Depots (ICDs) saw marginal improvement, while Integrated Check Posts (ICPs) continued to outperform all categories, with nearly 93 per cent of imports cleared within the NTFAP (National Trade Facilitation Action Plan) benchmark of 48 hours. Exports, however, reveal a mixed picture. The ART for exports, or the duration from cargo arrival to final departure, suggests that while ACCs and ICPs meet most clearance targets, seaports and ICDs continue to lag. This is particularly worrying, given that these locations handle a substantial portion of India’s outbound trade volume. Differences in cargo type, stuffing method, and time-of-day patterns cause further variations in release time. 

  What drags performance down? The study flags delays in duty payment, frequent amendments to shipping and entry documents, and inefficient query resolution as key contributors to higher clearance times. Moreover, delays in post-regulatory logistics, especially after Customs clearance, remain a bottleneck, particularly for exports at ICDs. The presence of partner government agencies (PGA) also continues to slow clearances at major ports, with inconsistent performance and coordination.  Kolkata port, for instance, recorded the highest import clearance time across all seaports, averaging over 140 hours, due to delayed assessments, slow PGA interventions, and limited advance filing by importers. On the other hand, Mundra port emerged as a standout performer among seaports, with an average release time of just 55 hours, far below the national average, demonstrating the benefits of streamlined container handling and proactive facilitation. Logistics costs in India are estimated to be 14-18 per cent of gross domestic product, significantly higher than the global benchmark of 8 per cent. As the study rightly notes, this calls for further reforms, including automation at port gates, reduction in manual documentation, improvements in post-clearance logistics, such as faster movement from port gates, and better adoption of digital platforms by traders. For India to become a reliable export hub and an attractive destination for global manufacturing, these operational gaps need urgent attention.