The Government’s PM Gati Shakti master plan and the National Logistics Policy (NLP) envision a future-ready, integrated logistics ecosystem that reduces costs, increases efficiency, and boosts India’s global competitiveness. CBIC, in synergy with this vision, has been driving customs modernization and streamlining procedures to eliminate bottlenecks that once hampered trade.
The aim is ambitious: bring down India’s logistics cost—currently estimated between 9% and 14% of GDP—to levels comparable with global benchmarks by 2030. To achieve this, CBIC has launched several forward-looking initiatives to create a seamless, technology-enabled, and trustworthy customs infrastructure.
Data-driven transparency and reform
Recognizing the need for a comprehensive understanding of logistics costs and performance, CBIC is urging academia, industry, and research bodies to collaborate on data-driven assessments. This effort seeks to replace outdated, assumption-based metrics with objective indicators that can better guide reforms and infrastructure investments.
The emphasis is not just on improving perceptions (as measured by indices like the World Bank’s Logistics Performance Index) but on achieving real-world gains in cost, speed, and predictability for importers and exporters.
Digitisation and automation at the core
CBIC’s digital-first approach is central to its reform strategy. The recent launch of e-Bond and e-Bank Guarantee facilities marks a major shift away from paper-heavy procedures. Traders can now replace multiple bonds with a single, streamlined digital bond, reducing paperwork, delays, and the cost of compliance.
The introduction of ‘REGO’—Reason for Expeditious Goods Release on Arrival—is another innovation. It allows Authorized Economic Operators (AEOs) to shift imported goods directly to their own premises for customs examination, reducing dwell time at ports.
Further, risk-based uniform examination orders across ports now ensure consistent, faster, and more efficient physical inspections. Backed by I-Cells and containerscanners at key seaports and airports (24 scanners installed so far), these measures cut down on manual handling and reinforce cargo security.
Customs process standardisation and predictability
CBIC has also introduced time limits for finalising provisional assessments, a long-standing concern among businesses. The process must now be completed within two years (extendable by one year), providing greater predictability and cost efficiency for importers, particularly in sectors with complex valuation challenges.
The National Time Release Study conducted by CBIC showed measurable improvements in release times at major ports and integrated check posts, with reductions of 5–6% over the previous year. This demonstrates real progress in accelerating cargo movement and minimizing bottlenecks.
Supporting MSMEs and niche sectors
Smaller businesses often struggle with trade compliance, especially in niche sectors like e-commerce and gem & jewellery exports. CBIC has responded by digitising export clearance through the postal and courier routes and introducing simplified re-import procedures for returned goods.
These measures are designed to empower MSMEs, enabling them to access global markets with the same speed and efficiency as large exporters.
International collaboration and global alignment
CBIC is actively engaging in international cooperation, with a focus on bilateral Mutual Recognition Arrangements (MRAs) and customs data-sharing under FTAs. The latest MRA with Singapore enhances real-time collaboration and ensures faster and more secure cross-border cargo movements.
Additionally, the upcoming Customs Integrated System will unify procedures across all modes of transportation—air, sea, land—eliminating discrepancies and enabling a single-window interface for all customs operations.
Conclusion: From gatekeeper to trade enabler
Today, CBIC is no longer a passive checkpoint in the trade value chain—it is a strategic enabler, simplifying customs procedures, embracing technology, and collaborating with industry partners to shape a modern trade ecosystem.
With continued investment in automation, AI-driven risk management, and international standardization, CBIC is setting the foundation for India’s rise as a global logistics and manufacturing powerhouse.
As India aims to become a $5 trillion economy, CBIC’s efforts stand out as a model of responsive governance and proactive reform, inspiring confidence among domestic and international businesses alike.
(This article is based on Sanjay Kumar Agarwal speech delivered at the FFFAI 25th biennial convention)
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