Our Strategy

Streamlining Customs and Central Excise Procedures

Customs and Central Excise procedures are perceived by the trade as cumbersome involving time consuming documentation, scrutiny and physical examination of goods, divergent practices and a high degree of individual discretion, resulting in impediments to the smooth movement of trade and acting against the interests of genuine importers, exporters and manufacturers. Appreciating this concern we are committed to streamlining and simplifying the procedures and setting a climate for voluntary compliance. The introduction of electronic processing of documents also entails a change in approach and re-engineering of Customs and Central Excise processes based on selectivity, risk assessment and reduced intervention.

We envisage the following measures to achieve this objective:-




Minimise pre-clearance scrutiny of import/export declarations and examination of goods.


Introduce systems assessment i.e. without any human intervention for specified commodities/identified importers and exporters.


Introduce audit-based post-clearance scrutiny for identified importers/exporters, industry groups. Combine post- clearance audit for Customs and Central Excise in respect of manufacturer-importers/exporters wherever possible.


Accept periodic declarations instead of individual declarations for each consignment for identified importers/exporters.


Introduce a system of deferred duty payment for identified assessees subject to revenue safeguards.


Minimise physical examination of goods by effectively using 'risk assessment' based targeting techniques.


Introduce a system of release of goods even where the documentation is incomplete or there has been contravention of Customs laws, subject to adequate safeguards.


Eliminate divergent practices in the application of Customs laws and procedures at different Customs stations by effective monitoring and analysis of the computerised database.


Move towards a single window clearance wherever possible.


Provide 24 hours or 'extended time' Customs clearance facility, wherever required.


Implement the provisions of International Conventions on Customs techniques (Revised Kyoto Convention).


Examine all extant procedures and eliminate those not compatible with trade facilitation.


Undertake a continual review of Customs procedures so as to be responsive to changing situations.

Central Excise

Study all the existing Central Excise procedures, and streamline and simplify them, so that the assesses are encouraged to comply voluntarily;

Evolve a new and comprehensive Central Excise law;

Adopt unified Modvat rules for inputs and capital goods.

Move towards a system of periodical payment of duties by assessees;

Replace physical checks with selective audit;

Accept records maintained under Companies Act for the purpose of administration of Central Excise laws in lieu of statutory records;

Evolve simplified schemes for refunds and rebates due to manufacturers and exporters;

Eliminate divergent practices in the application of Excise laws and procedures at different formations by effective monitoring and analysis of the computerised database.

Undertake a continual review of Excise procedures so as to be responsive to the changing situations.