The Delhi High Court has directed the Central Board of Indirect Taxes and Customs (CBIC) and the Commissioner of Customs to consider providing preferential treatment to start-ups and micro, small, and medium enterprises (MSMEs) facing delays in customs procedures, especially for low-value consignments.
The court highlighted the need to align customs operations with the government’s policy of promoting small businesses.
A division bench, comprising Justices Pratibha M Singh and Shail Jain, noted that under Section 110 of the Customs Act, 1962, the prescribed timelines for customs clearance are six months, which can be extended by another six months.
Such extended timelines, the court observed, could place undue burden on small businesses, particularly when the goods involved are not prohibited.
The bench suggested that the CBIC and the Commissioner of Customs explore measures such as expedited timelines, warehousing solutions, and provisional release of goods for start-ups and MSMEs dealing with low-value consignments.
The court emphasised that providing such preferential treatment would support the government’s objective of fostering entrepreneurship and small business growth.
The CBIC and the Commissioner of Customs have been asked to submit affidavits detailing their considerations and any proposed steps by October 28, 2025, the next hearing date.
This directive aims to ease the challenges small enterprises face in navigating complex customs procedures, thereby creating a more supportive business environment in India.
This move reflects the judiciary’s proactive role in encouraging a business-friendly ecosystem, particularly for emerging and small enterprises that are crucial to India’s economic growth.
By addressing procedural delays, the court seeks to enable start-ups and MSMEs to operate efficiently, contributing to innovation, employment, and overall economic development.
