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• The Central Board of Indirect Taxes and Customs (CBIC) has introduced relaxations for Customs Cargo Service Providers (CCSPs) to boost global trade.
• Key changes include a reduction in the number of days for insurance of stored goods from 10 to 5 days.
• The license renewal process for CCSPs meeting international operational standards has been withdrawn.
• These measures aim to reduce operational costs, improve efficiency, and enhance India's position in global trade.

In a significant move to boost global trade, the Central Board of Indirect Taxes and Customs (CBIC) has introduced key relaxations for Customs Cargo Service Providers (CCSPs). This initiative is aimed at promoting ease of doing business and reducing logistics costs. One of the key relaxations includes a reduction in the number of days for insurance of stored goods. Previously, CCSPs were required to insure goods stored in Customs areas for a period of 10 days as per the Handling of Cargo in Customs Areas Regulations, 2009. However, this period has now been reduced to 5 days as a trade facilitation measure. This change is expected to enhance the cash flow for the entities by reducing the cost.

License Renewal Process Withdrawn

In addition to this, the new notification has also withdrawn the Licence Renewal Process. In a move to acknowledge well-established and compliant business entities, CCSPs who meet international operational standards (AEO) will no longer be required to undergo the renewal process of their licenses for handling goods under the Handling of Cargo in Customs Areas Regulations, 2009. Their licenses have been made synchronous to their AEO authorisation. This will result in ease of doing business for logistics operators working as CCSPs.

Aiming to Reduce Operational Costs

These measures aim to reduce operational costs and compliance burdens for CCSPs, who play a crucial role in handling imported and exported goods. The changes are part of the government 's ongoing efforts to reduce the cost and compliance burden, improve the efficiency of EXIM operations, and facilitate global trade. The CBIC's efforts are expected to reduce logistics costs, improve operational efficiency, and enhance India 's position as a competitive player in global trade, in line with the PM Gati Shakti National Master Plan's goals of improving logistics infrastructure and efficiency in global trade to promote sustainable development.