Government targets full automation of customs processes by April 2026

  • September 4, 2024
  • News

The government is targeting full digitization of customs processes by April 2026, integrating more departments into the Single Window Interface for Facilitating Trade (SWIFT) portal to expedite clearance procedures, according to official sources.

Revenue Secretary Sanjay Malhotra announced that the customs department was developing ‘Customs 2.0,’ a fully automated trade interface aimed at improving India’s ranking in the World Bank’s Logistics Performance Index (LPI). He further stated that the objective is to simplify business for importers and exporters while reducing trade turnaround times and the process is expected to be automated within two years, by April 2026.

Digitalizing customs processes will enable paperless trading, allowing traders to submit documents online, reducing transaction costs and turnaround times. The Central Board of Indirect Taxes and Customs (CBIC) reported a reduction in average release time for imports at nine out of 15 surveyed ports in 2024 compared to the previous year, with significant improvements also noted in export clearance times.

Currently, the SWIFT portal allows online submission of clearance documents, while ‘Turant Customs’ and ‘E-Sanchit’ streamline export approvals and document uploads, respectively. A single portal integrating these systems is expected to be operational within two years.

Jitendra Motwani, partner at Economic Laws Practice, highlighted that digitalization has streamlined operations and reduced human errors and automation will balance trade facilitation with regulatory enforcement. Experts also recommend an online module for trade facilitation schemes and the integration of customs compliance data with enterprise resource planning (ERP) systems to reduce compliance time and costs, similar to the GST system.