India Inc Calls for Overhaul in Customs Duty Regime to Boost Trade

India Inc seeks significant reforms in the customs duty regime in FY27 Budget, advocating for a GST-style modification. The industry demands include rationalization of customs duties, a single-window clearance mechanism, and digitization of dispute resolutions to facilitate trade and reduce litigation.

India Inc is pushing for comprehensive changes in the customs duty regime, similar to GST, in anticipation of the FY27 Budget. Businesses are advocating for measures that promote trade facilitation and simplify dispute resolution processes.

A key demand is the rationalization of customs duty rates and the reduction of slabs. Additionally, the industry calls for a single-window clearance system for exports and imports, a definitive timeline for Authorized Economic Operator (AEO) certification, and a charter for the Directorate of Revenue Intelligence (DRI) to efficiently conduct investigations. Digitizing the litigation process and devising a scheme to release Rs 1.52 lakh crore in customs duty caught in legal battles are crucial industry expectations.

The Deloitte India Partner, Gulzar Didwania, highlighted the hindrance posed by the current multi-department clearance mechanism, advocating for a swift launch of the single-window facility. In parallel, EY India Tax Partner Saurabh Agarwal stressed the need for a Customs Dispute Resolution Scheme to manage cases up to the Tribunal level. This move, he said, should veer from complete settlement to issue-wise resolution, fostering a predictable tax environment crucial for global investors.

(With inputs from agencies.)