Faceless assessments have resulted in delays of export and import customs clearances in India. The Faceless, Contactless, Paperless Customs initiative was launched by The Central Board of Indirect Taxes and Customs (CBIC) to promote transparency and cut red tape. The initiative was launched for the first time in early September and the customs department aimed at implementing it across India by the end of October. However, the initial implementation is facing teething issues which defeat the very essence of the initiative.
Sharad Kumar Saraf, the President of the Federation of Indian Export Organisations (FIEO), said businesses across industries reported severe delays in export and import customs clearances in the last 15-20 days, with imports hurt more than exports. Importers said consignments are usually cleared in 48 hours, but the process could take up to five days under the new system.
Some other business owners reported that the clearance process took an even longer time. According to Saraf, the most affected industries include automotive, auto parts, chemicals, and medical equipment. Saraf said industries welcomed the initiative, but authorities need to provide customs officials with proper training.
A senior customs official responded to the issue, saying that the department had initiated a capacity building to tackle the initial teething troubles. The problems are more pronounced in New Delhi due to a labour strike at the Delhi Air Cargo. Companies said that the delays incurred additional costs, including demurrage charges and production delays.
