Customs clearance to get tech boost, may now take 12 minutes from 12 hours earlier

Representative image

Automated facilities could drastically slash the time taken for Customs' clearance at Indian ports, a move that is set to further improve India’s standing on the Ease of Doing Business Index, reports Business Standard.

Mumbai’s Nhava Sheva port takes 82 hours to import, of this Customs takes up 12 hours. The government is considering blockchain, machine learning and artificial technology (AI) to reduce this clearance time to 12 minutes, the report said.

Touted as a 'futuristic reform' which would allow perceived risk-free release of consignments, the machine clearance would initially be implemented for select 3,800 importers accredited with the Customs Department under the authorised economic operator (AEO) scheme and who meet the risk criteria -- a good compliance history, a government official told the paper.

AEO programme is a trade facilitation scheme and currently offers members reduced examination and inspection, and acceptance of pre-arrival import declarations. Such accredited members make up 40 percent of import volumes.

The department also plans to use image scanners for cargo that does not pass initial machine clearance and keep the data as intelligence for future reference. This will be executed via blockchain technology, the official added.

The government is also considering electronic seal (e-seal) at the factory level, wherein each container would be read from factories to ports. This will make the profile of exporters and consignment, allowing for automated clearance, another official said.

All of this would also eliminate physical documentation and allow reallocation of workforce.