CBIC plans wider AI use, unified portal to ease customs compliance costs

Customs Chief Vivek Chaturvedi has called for the accelerated use of artificial intelligence and machine learning to reduce the physical interaction with trusted taxpayers. The Central Board of Indirect Taxes and Customs (CBIC) chairman outlined five pillars for the Customs department over the next decade, aiming to create a unified ecosystem for trusted taxpayers.

This would ensure consistency in compliance across GST, customs, and other indirect tax payments, bringing synergy to the indirect tax division. Chaturvedi also urged the customs department to support micro, small, and medium enterprises (MSMEs) and conduct outreach programs to help them benefit from schemes like Eligible Manufacturer Importer (EMI) and Authorised Economic Operator (AEO).

He emphasized that technology should enable a near-touchless, near-paperless experience for businesses registered as AEOs. Currently, there are over 6,000 entities with AEO certificates. The Customs department must accelerate the deployment of AI, machine learning, and real-time analytics, employing cyclical and predictive applications to reduce transaction and dwell costs.

Seamless inter-agency coordination, deep data integration, and global reciprocity of Mutual Recognition Agreements (MRAs) are also necessary. India has signed MRAs with 11 countries, and more are in the pipeline. The next decade for Customs should be characterized by deeper technology adoption, more MRAs, and a seamless trade experience.