The Finance Ministry on Tuesday allowed Public Sector Undertaking (PSUs) to get their import cleared first and pay the import duty within 14 days.

“This measure is expected to result in speedier clearance of the good imported by the PSUs, thereby helping them in their activities,” a statement issued by Central Board of Indirect Taxes and Custom (CBIC) said. The inclusion of PSUs, both of the Centre and States, in the scheme of deferred payment of Custom duty would require these importers to register with the CBIC on the basis of a recommendation letter from a Joint Secretary level officer of their administrative Ministry/Department.

The board also informed that as an additional facilitation exercise, it has done away with the earlier requirement of the approved AEOs (Authorised Economic Operators) having to intimate every Customs Port of their entitlement to avail the facility of deferred payment of Customs duties. This would now be handled centrally, which is expected to ease the compliance requirement for the eligible importers. This will also apply to the approved PSUs.

The scheme of deferred payment of Customs duties was first introduced in November 2016, for importers recognised by the CBIC as AEOs. These importers are approved by the Customs on the basis of certain compliance parameters such as proper maintenance of records, secure internal controls, and a good track record of legal compliance. The approved AEOs, numbering 244 at present, are given the facility of clearing their imported goods immediately and paying the admissible Customs duties thereon subsequently.

The facility of deferred payment of Customs duties is a part of CBIC’s ongoing next generational reform ‘Turant Customs’ which envisages a Faceless, Contactless and Paperless Customs environment. The objective is to enhance the ease of doing business and bring in more efficiency and improvement in turnaround time, ultimately leading to a reduction in the time and costs associated with the Customs clearance processes

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