AI, Real-Time Analytics Can Help Cut Customs Transaction Costs: CBIC Chairman
CBIC Chairman Vivek Chaturvedi called for wider use of AI, machine learning and real-time analytics to reduce physical interfaces and transaction costs in Customs
The Customs department should expand its use of artificial intelligence (AI), machine learning (ML) and real-time analytics to reduce physical interaction 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 on September 16, Chaturvedi outlined a long-term technology-driven vision for Customs, with the aim of providing businesses with a near-touchless and near-paperless experience.
He said Customs should accelerate the deployment of AI, ML, real-time analytics and predictive applications. Greater use of technology, he said, could help reduce transaction costs as well as cargo dwell costs for businesses.
Chaturvedi also called for the creation of a unified and trusted taxpayer ecosystem that captures consistent compliance across GST, Customs and other indirect taxes. Such integration could improve coordination across the indirect tax system.
The CBIC chairman stressed that technology should act as an enabler for Customs, particularly in creating a near-touchless and near-digital experience for businesses holding Authorised Economic Operator (AEO) status.
The department also plans to strengthen support for micro, small and medium enterprises (MSMEs). Chaturvedi called for outreach and handholding to help MSMEs make greater use of Customs facilitation measures, including deferred-duty payment schemes such as the Eligible Manufacturer Importer (EMI) and AEO programmes.
More than 6,000 entities currently hold AEO certificates, covering importers, exporters, logistics providers, custodians and terminal operators, customs brokers and warehouse operators. The AEO programme is a voluntary compliance initiative through which Customs works with supply-chain stakeholders to strengthen cargo security while facilitating legitimate trade.
Chaturvedi further highlighted the need for seamless coordination among government agencies, deeper data integration and wider international reciprocity through Mutual Recognition Agreements.