CBIC introduces license and insurance relaxations for CCSPs, aiming to enhance trade and logistics efficiency.
The Central Board of Indirect Taxes and Customs (CBIC) has introduced key relaxations for Customs Cargo Service Providers (CCSPs), aligning with the PM Gati Shakti National Master Plan’s objectives to boost logistics, efficiency, and sustainable growth. Circular No. 22/2024-Customs, issued on November 8, 2024, and Notification No. 75/2024-Customs (N.T.), issued on November 7, 2024, outline these regulatory changes.
Previously, CCSPs were required to provide insurance coverage for goods stored in customs areas for ten days. The revised regulations reduce this period to five days, a move aimed at cutting operational costs and improving cash flow for CCSPs.
Further, Authorised Economic Operator (AEO)-certified CCSPs will now be exempt from license renewals under the 2009 Handling of Cargo in Customs Areas Regulations. Their AEO status will serve as an equivalent authorisation, facilitating smoother operations for reputable, compliant entities.
According to the Ministry of Finance, these measures are part of a broader strategy to reduce compliance costs and burdens on CCSPs, which play a crucial role in managing import and export goods. The government aims to streamline EXIM activities, cut operational costs, and support international trade by easing these requirements.
