CBIC Chairman Calls AI, Real-Time Analytics Crucial to Reducing Customs Costs

The Customs department should accelerate the use of artificial intelligence (AI), machine learning (ML) and real-time analytics to reduce physical interactions with trusted taxpayers and lower transaction costs for businesses, Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Chaturvedi said on Wednesday.

Speaking at an event in New Delhi, Chaturvedi outlined a long-term technology-driven vision for Customs, aimed at creating a near-touchless and near-paperless experience for businesses.

He stressed the need to build a unified and trusted taxpayer ecosystem that captures businesses' compliance across GST, Customs and other indirect taxes. Greater integration, he said, could improve coordination across the indirect tax system.

The CBIC Chairman called for faster deployment of AI, ML, real-time analytics and predictive applications to improve Customs processes and reduce transaction as well as cargo dwell costs.

He also highlighted the need to support micro, small and medium enterprises (MSMEs) through targeted outreach and handholding, enabling them to make greater use of Customs facilitation schemes.

Chaturvedi specifically referred to deferred-duty payment schemes such as the Eligible Manufacturer Importer (EMI) scheme and the Authorised Economic Operator (AEO) programme.

Technology, he said, should act as a "great enabler" for Customs, particularly in creating a near-touchless and near-digital experience for businesses holding AEO status.

More than 6,000 entities currently have AEO certificates, including importers, exporters, logistics providers, custodians, terminal operators, customs brokers and warehouse operators.

The AEO programme is a voluntary compliance initiative under which Customs works with supply-chain stakeholders to strengthen cargo security while facilitating legitimate trade.

Chaturvedi also called for seamless coordination among government agencies, deeper data integration and wider global reciprocity through Mutual Recognition Agreements (MRAs) to further streamline cross-border trade.