CBIC Celebrates 60 years of Customs Act, 1962

· Board claims present act has stood the test of time.

[Arun Goyal, ABS News Service/14.12.2022]

Experts say Act needs a major recast, licence permit raj frame must be replaced in Ease of Doing Business Era, Integration of Sea Customs Act 1884 and Land Customs Act, 1924 in the 1962 Act was a century ago. New look in days of E-commerce, mega carriers and high speeds required.

Web of specific rules for the 161 sections to be unified..efficacy of each rule in terms of throughput to be evaluated by independent team.

Customs Act, 1962 should be integrated with Tariff Act 1975 to prepare for the future as suggested by Finance Minister in the meeting.

Reward Scheme for customs officers is seen as "mercenary“, no special incentives after Seventh Pay Commission from too to bottom salary hike not necessary for performance of duty. Officers should be recognised for throughout of cargo.

Universal high duties for all items could be replaced with a low duty regime for global supply chain with peaking for select items only.

Transaction value principle of valuation of imports and exports should not to be questioned except in fraud cases.

Over reliance on online must be substituted with manual option.. no time line for compliance procedures.. minimal late fee to be laid out..

Small value imports through cargo and baggage must be exempted.

Special headings and subheadings for modern sunrise industries like Electronics, electric vehicles, batteries, non-conventional energy, drones must be created. As suggested by Freight Forwarders Association dedicated customs areas for their speedy clearances with experienced officers must be put in place.

We have a specific heading 9801 for project imports. More such headings are required.

Integration of ministry of commerce export promotion schemes with those of customs required, common cadre of IRS and ITS proposed. As suggested by Freight Forwarders Association, dedicated export clearance Infrastructure with minimal regulation required.

Data transparency negligible.

Private ports have undermined regulatory customs oversight.

Custodians have become extortionists with demurrage income forming substantial share in total income comprising of rentals.