Government Weighs Options to Protect Traders as Clearance of Cargoes Achieves 24-Hour Target

Government Initiates Consultations to Mitigate Impact of West Asia Conflict on Indian Trade

The Government of India has begun consultations with industry stakeholders to minimize the impact of the ongoing conflict in West Asia on Indian importers and exporters. The primary objective is to maintain predictability in cargo movement, reduce avoidable delays, and ensure seamless documentation and payment processes.

Key Measures Under Consideration

• 24-Hour Cargo Clearance: The government is exploring the possibility of ensuring that cargo clearance is completed within 24 hours for compliant importers, requiring coordination among Customs, DGFT, and GSTN to avoid repetitive documentation processes.
• Institutionalizing Risk-Based Assessments: For low-risk consignments, the government is considering introducing uniform, risk-based assessments across major ports, with strict adherence to the Risk Management System (RMS)-facilitated processing.
• Review of RoDTEP Scheme: The government is open to reviewing the restrictions imposed on the RoDTEP scheme, which capped benefits at 50 percent, to ease working capital constraints for high-value engineering and electronics exports.
• Fastrack Advance Ruling: Experts suggest fast-tracking advance rulings on the classification and valuation of goods to achieve clarity in a time-bound manner.
• ICEGATE Portal Upgrades: The government is encouraged to ensure the uninterrupted functioning of the ICEGATE portal and real-time resolution for technical glitches, as well as utilize AI capabilities to reduce manual assessments for low-risk consignments.

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Industry Expert Insights

• Sivakumar Ramjee, Executive Director- Indirect Tax, Nangia Global: "The recently announced 50% value cap on RoDTEP benefits for certain sectors may be reviewed or rationalized to ease working capital constraints, especially for high-value engineering and electronics exports."
• Vimal Pruthi, Tax Partner, EY India: "Timely cargo evacuation is required to prevent congestion and extended dwell time, maintaining continuity of import-export logistics, protecting MSMEs, and ensuring essential imports are not adversely affected."
• Ashish Mitra, Counsel, Economic Laws Practice: "A consistent view on issues of classification should be adopted, and different interpretations should be avoided across the ports, even in cases which are accepted in the past."
• Ikesh Nagpal, Lead-Indirect Tax, AKM Global: "Procedural flexibility in export authorizations, coordinated engagement with banks and insurers, and the possibility of enhanced credit lines to help exporters manage working capital pressures are practical measures that can provide immediate relief."