CBIC notifies Phased Implementation of Electronic Cash Ledger in Customs w.e.f 1st April

The Central Board of Indirect Taxes and Customs (CBIC) has notified the phased implementation of Electronic Cash Ledger (ECL) in the Customs w.e.f 1st April via issuing Circular.

The Circular Stated, “The Electronic Cash Ledger (ECL) functionality is envisaged in Section 51A of the Customs Act, 1962. It provides enabling provision whereby the importer, exporter or any person liable to pay duty, fees etc., under the Customs Act, has to make a non-interest bearing deposit with the Government for the purpose of payment. The Customs (Electronic Cash Ledger) Regulations, 2022 (ECLR) notified vide No. 20/2022-Customs (N.T) dt. 30.03.2022 govern the manner of operationalization of ECL and related aspects. The statutory provision came into force on 01.06.2022.”

Pending development of IT infrastructure and necessary integration with authorized banks, RBI and Pr.CCA (CBIC), all the deposits classes were exempted till 31.03.2023, vide notification no. 47/2022-Customs (NT) dt. 31.05.2022, as amended, from provisions of section 51A. Considering the present state of development and integration, and on basis confirmation from RBI, Pr.CCA and DG Systems, Board has decided to enable ECL in phases from 01.04.2023.

In the first phase from 01.04.2023 till 30.04.2023, the exemption to deposit from the provisions of section 51A shall be restricted to the following vide Notification No.18/2023-Customs (NT) dated 30.03.2023, namely, –

I. Deposits with respect to Goods imported or exported in Customs stations where Customs Automated System is not in place;

II. Deposits with respect to Accompanied baggage;

III. Deposits with respect to Goods imported or exported at International Courier Terminals;

IV. Deposits, other than those used for making electronic payment of:

a. any duty of customs, including cesses and surcharges levied as duties of customs;

b. integrated tax;

c. Goods and Service Tax Compensation Cess;

d. interest, penalty, fees or any other amount payable under the Act, or Customs Tariff Act, 1975.

In second phase, from 01.05.2023, the exemptions cited above would continue, except for the deposits with respect to goods imported or exported at International Courier Terminals. (refer notification no. 19/2023-Customs (NT) dt. 30.03.2023 amending 19/2022-Customs (NT) dt. 30.03.2022). In other words, payments relating to Courier shipments would be required to be done through ECL from 01.05.2023 onwards.

Since item 3.1 IV above refers to the term “electronic”, the payment made through TR-6 challan for various purposes through authorized bank counter at the Customs locations would be exempted from the provisions of section 51A, till such activity is also migrated to the ECL in the subsequent phases.

The phased introduction of ECL is aimed at leveraging technology and reforming the payment process, inter-alia related to clearance of goods as the deposit may be held in ECL by the Trade for making subsequent transaction-wise payments of various types. This has potential to easing compliance in numerous ways.

After the introduction of second phase, subsequently the following functionalities shall be developed in ECL

Registration for availing ECL:

Deposits under ECL provision requires the person to be registered at ICEGATE portal and to create ECL Account. In addition to importers/exporters (IECs), the customs brokers, couriers who are making payments on behalf of the importers/exporters are also enabled in ECL. Similarly, the importers who are assigned Unique Identification Number (UIN) under GST are also enabled in ECL. The detailed advisory for registration and the creation of ECL Account will be available on the said portal.

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