Government to fully automate customs processes by April 2026

The aim is to simplify business processes for importers and exporters and reduce trade turnaround times. The customs department has been working on a fully automated trade interface system called ‘Customs 2.0’ as part of the government’s effort to boost its ranking in the World Bank’s Logistics Performance Index (LPI).

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The Indian government is set to fully digitalize the customs process by April 2026, with plans to bring more departments onto the Single Window Interface for Facilitating Trade (SWIFT) portal to speed up clearance procedures. 

Revenue Secretary Sanjay Malhotra stated earlier this year, that the development of a fully automated trade interface system, ‘Customs 2.0,’ is underway to enhance India’s ranking in the World Bank’s Logistics Performance Index (LPI), where the country slipped to 47th place in 2023 from 40th in 2018.

“Our current ranking underscores a significant opportunity for improvement,” Revenue Secretary noted.

He added, “All payments, all interfaces with trade need to be automated so that everything is available at the click of a button.”

The digitalization of customs aims to establish a paperless trading environment, enabling traders to submit clearance documents online, which helps lower transaction costs and turnaround times. These advancements have already led to reduced average release times at several ports; nine out of 15 ports surveyed reported shorter release times for imports in 2024 compared to the previous year. The time required for regulatory clearance of cargo has also significantly decreased at inland container depots and air cargo complexes.

Currently, the customs process utilizes multiple digital platforms: SWIFT for the online submission of clearance documents, ‘Turant Customs’ to streamline export approvals, ‘E-Sanchit’ for the digital upload of supporting documents, and ‘ULIP’ to connect various logistics systems. The government plans to unify these platforms into a single portal, expected to be operational within two years.

Experts commend these digitalization efforts for reducing human errors and inefficiencies. They also suggest further improvements, such as creating a module for online compliance with trade facilitation schemes. For instance, automating the bond-to-bond transfer process for Manufacture and Other Operations in Warehouse (MOOWR) units could allow exporters to close bonds online at the port of entry post-export, removing the need for manual processing. Additionally, there is a need for a comprehensive digital portal to manage licenses required under the Export Promotion Capital Goods (EPCG) scheme, which would help manufacturers track their license validity more efficiently.