The Nhava Sheva branch of Mumbai Customs has written to the top 500 importers and exporters of the city asking them to opt for a programme under which customs will “trust the stakeholders and perform less or no inspections on goods imported or exported” by firms that pass the necessary eligibility criteria set by the agency.
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According to a letter sent by the chief commissioner of customs on October 21 to several firms, the programme called Authorized Economic Operator (AEO) will be extended to firms that have “demonstrated strong internal control systems and compliance” with customs laws.
“This benefits the importer as consignments are cleared expeditiously. This would translate into direct reduction of transaction costs. AEO would also be extended the facility of Direct Port Delivery, which would ensure direct movement of goods from wharf to warehouse and vice versa from the importer/exporter,” said the letter accessed by (The Indian Express).
Some of the firms which have been told to apply for the programme include Reliance Jio Infocomm, Skoda Auto, BMW India, Tata Motors and LG, among others.
“The new programme for import/export stakeholders is in line with the Trusted Clients norm in global trade,” said the letter.
“It is pertinent to mention that Nhava Sheva customs is already clearing 80% import cargo under self assessment, mostly without physical intervention by customs. DPD facility along with AEO status shall further guarantee delivery to the manufacturer’s premises at the shortest time possible,” said the letter issued by the Chief Commissioner of Customs, John Joseph.