The Central Board of Indirect Taxes and Customs (CBIC) has asked senior field officers to ensure that authorized courier agencies do not ask for too many documents from individual importers beyond what is legally mandated for ID checks, especially while importing small-value items.
CBIC chairperson Sanjay Kumar Agarwal in a newsletter posted on the tax authority’s website said the Board has noticed that some couriers were insisting on documents beyond those prescribed by the authority for ‘know your customer’ or KYC compliance.
To ease compliance for individuals importing documents, gifts, samples or low-value dutiable consignments of upto ₹50,000 including insurance and freight, the Board has clarified that in cases where the delivery address differs from the proof of identity provided for KYC, recording the delivery address at the time of delivery by the courier companies would suffice as proof of address.
“All field formations have been advised to sensitize authorized couriers under their jurisdiction to strictly adhere to the KYC provisions as laid down in the relevant circulars to ensure smooth and hassle-free clearance for individuals,” the chairperson said in the newsletter, referring to a circular issued in 2016.
That circular had specified that recording the delivery address at the time of handing over the consignment was sufficient if the document showing identity had a different address.
Experts said the clarification is a welcome step towards eliminating procedural inefficiencies and ensuring regulatory adherence.
“Many courier companies were imposing unnecessary documentation requirements beyond the prescribed norms, leading to avoidable delays and challenges for individual importers,” an tax expert said.
By reaffirming that recording the delivery address at the time of delivery suffices as proof of address, as per the circular issued on 26 April, 2016, the CBIC has reinforced its commitment to trade facilitation and ease of doing business, he said.
“This directive will help standardize processes, reduce compliance burdens, and ensure a seamless experience for importers using courier services,” he said.
The clarification comes after instances of courier companies reportedly seeking documents like electricity bill, rent agreement etc for proof of residence.
CBIC’s clarification is a welcome and necessary reform to ease trade facilitation in India, another tax expert said.
“Over the years, businesses and trade bodies have consistently highlighted excessive and inconsistent documentation requirements imposed by certain courier companies, which have led to unnecessary delays, rejections, and added costs. The primary concern has been the mismatch between delivery addresses and official identity documents, which previously required individuals to furnish additional address proof, often leading to logistical bottlenecks,” he explained.
The decision to allow courier companies to record the delivery address at the time of delivery instead of demanding extra address proof is a pragmatic solution that balances compliance with efficiency, he said.
This will significantly reduce the burden of paperwork for small importers, e-commerce buyers, and individuals receiving gifts or samples, ensuring a smoother clearance process for low-value shipments, he said.
CBIC’s directive to field formations to strictly adhere to prescribed KYC provisions will prevent arbitrary enforcement by couriers and ensure uniform compliance across the industry, he said.
