The Central Board of Indirect Taxes and Customs (CBIC) in India has announced reforms aimed at simplifying the air cargo movement of perishable goods. These changes are designed to expedite the process and reduce costs for farmers, exporters, and logistics companies.
In alignment with the 2025-26 Union Budget's objectives to modernize customs procedures, the reforms focus on facilitating the transport of high-value, time-sensitive products such as grapes, mangoes, onions, and processed foods through Indian airports.
Effective from April 24, 2025, CBIC has eliminated the fee for transshipment permits, as stated in Notification No. 30/2025-Customs (N.T.). This move is expected to alleviate procedural delays and reduce costs associated with inter-terminal cargo movements. The industry anticipates time and cost savings, particularly for logistics operators managing large cargo volumes.
Previously, cargo movement between ports or customs stations required a special permit with an associated fee, which has now been abolished. This change allows companies to move goods more freely, providing time and cost efficiencies for those handling large volumes.
Addressing the air cargo sector's concerns, CBIC has also introduced a harmonized process for the temporary import of Unit Load Devices (ULDs) outside the Customs area. This change mirrors marine container protocols and allows air carriers or console agents to assume re-export responsibilities through a Continuity Bond, a responsibility previously held by importers. This reform aligns Indian customs practices with global logistics standards, benefiting time-sensitive cargo like perishables and pharmaceuticals.
Operational since 2022, the All-India National Transshipment Bond system is now being promoted for broader adoption. This facility removes the need for airlines to submit multiple bonds at various Customs locations, simplifying compliance for frequent import cargo movements.
CBIC has digitized the transshipment application process via ICEGATE, the Indian Customs EDI gateway, eliminating the need for physical visits to service centers. This advancement marks a step toward a paperless customs environment.
India's fruit and vegetable exports have seen steady growth, with exports rising over 5% to $3.39 billion in the first 11 months of the financial year 2024-25. With substantial production figures, India has the potential to expand its presence in global agricultural trade.
Source: Rural Voice