Major Boost for Air Cargo: CBIC Announces New Trade Facilitation Measures

In a significant move aligning with the Union Budget 2025-26, the Central Board of Indirect Taxes and Customs (CBIC) has introduced a series of trade facilitation measures targeted at upgrading infrastructure and streamlining customs procedures in the air cargo sector. These changes reflect the broader vision outlined by the Union Minister for Finance and Corporate Affairs to enhance India's logistics landscape, especially for high-value and perishable horticulture produce.

These reforms are geared towards improving the operational efficiency of air cargo logistics, reducing compliance burdens, and enhancing India's competitiveness in global trade.

Waiver of Transhipment Permit Fee: A Game-Changer for Logistics Operators

One of the most impactful measures introduced is the waiver of the transhipment permit fee, effective from 24th April 2025. Until now, logistics operators were required to pay a fee for every transhipment permit when moving imported cargo between customs areas (such as Ports, Container Freight Stations, Inland Container Depots, etc.) without duty payment under the Customs Act, 1962. This practice, though longstanding, had become cumbersome with the surge in trade volumes.

To streamline the process and enhance the ease of doing business, CBIC examined the issue and decided to completely abolish the permit fee, thereby reducing delays and administrative burden. The change has been officially notified through Notification No. 30/2025-Cus (N.T) dated 24th April 2025. Read the notification here.

Easing Cargo Movement: Temporary Removal of ULDs Now Simplified

Recognizing the growing volume and urgency in handling perishable and high-value cargo, especially in air freight, the CBIC has also introduced simplified procedures for temporary import and movement of Unit Load Devices (ULDs) beyond the designated Customs Areas.

ULDs, which are vital containers used in air cargo operations, were traditionally required to be off-loaded entirely within the air cargo complexes before customs clearance. The newly harmonized protocol now allows these ULDs to be temporarily moved outside Customs Areas under a simplified framework similar to the marine container procedures adopted at seaports since 2005.

Under this revamped approach:

• Air carriers or air console agents can now execute a Continuity Bond, assuming responsibility for the re-export of ULDs within the prescribed timeframe.

• Previously, the importers were solely responsible for the return of ULDs. They can still choose to do so, but the responsibility can now shift to logistics agents if preferred.

This procedural shift aligns India with global best practices, reducing delays and preserving the integrity of sensitive cargo like fresh produce.

Digital and Unified Bonding: Technological and Structural Advancements

Another crucial advancement comes in the form of broader digitization and unification of transhipment procedures:

• Since 2022, the All-India National Transhipment Bond facility is operational across air cargo complexes. This has helped eliminate the need for submitting separate bonds at each customs station, thus significantly simplifying transhipment logistics for airlines.

• The ICEGATE portal now facilitates online filing of transhipment applications, removing the necessity to visit customs service centers physically. This move marks a major push towards paperless and efficient customs operations.

---

Circular No. 15/2025-Customs: Detailed Guidelines and Operationalization

For comprehensive information on the operational aspects of these new measures, stakeholders are advised to refer to CBIC Circular No. 15/2025-Customs dated 25th April 2025. This circular provides detailed procedural instructions and outlines the responsibilities and compliance requirements for logistics operators, air carriers, and importers.

---

Benefits and Industry Outlook

These reforms, brought forth in line with the budgetary vision for 2025-26, aim to:

• Reduce dwell time for air cargo.

• Enhance the competitiveness of Indian exports, especially perishable agri-produce.

• Ease regulatory compliance for logistics operators and air cargo handlers.

• Foster adoption of digital processes, reducing physical documentation and manual intervention.

Industry stakeholders, including airlines, console agents, and freight forwarders, are encouraged to leverage these new facilities to boost operational efficiency and contribute to India's goal of becoming a global logistics hub.