The Central Board of Indirect Taxes and Customs (CBIC) is set to launch an online system for customs refunds within the next month, furthering its commitment to digitising customs procedures.
CBIC Chairman Sanjay Agarwal, in an interview with Moneycontrol, emphasised that while most customs processes have already transitioned to digital platforms, the refund process remains manual. He stated, “The process of refund is not digital, I think, but we are going to launch this online filing of refunds very soon, maybe within a month’s time.”
This initiative is part of CBIC’s broader strategy to enhance efficiency and transparency in customs operations. Previously, the CBIC introduced the ‘Turant Customs’ program, aiming for faceless, contactless, and paperless customs clearance processes. A key component of this program is the faceless assessment system, which was rolled out pan-India for all imports by October 31, 2020. This system allows customs assessments to be conducted without physical interaction between importers and customs officials, thereby reducing clearance times and promoting uniformity in assessments.
Additionally, the CBIC has been working on automating other aspects of customs operations. For instance, the board launched an automated system Exchange Rate Automation Module (ERAM) for publishing currency exchange rates on July 4, further streamlining the customs process.
The upcoming digital refund system is expected to expedite the refund process, reduce paperwork, and minimise errors, benefiting businesses by providing quicker access to funds and enhancing overall trade facilitation, he said.
Very often, high customs duties on imported inputs have inflated the cost of production leading to high prices of final products, which, ironically, have been higher than their imported substitutes, even after tariffs.
This was a pernicious legacy that needed correction. The Budget has made a significant beginning in this regard. This is visible from the large number of items on which basic customs duties (BCDs) have either been scrapped or reduced. The most notable examples are for parts and components used in manufacture of LCD/LED TVs; capital goods used for making lithium-ion batteries; textile machinery; knitted fabrics; critical minerals; telecom equipment; chemicals; food and beverages; plastic products; footwear; jewellery parts; copper, lead, tin and a number of other waste and scraps; solar modules, semiconductor devices and photovoltaic cells.
