Importers complaint of Customs IT System Glitches

Several shipments have been held up at Indian ports due to errors in the customs IT system, resulting in importers paying significant demurrage charges. According to trade statistics, goods of Rs 3,000-5,000 crore are stranded across India.

Importers claim that the ICEGATE system’s duty payment option is still not working properly. Since April 1, trade/importers have paid heavy demurrage charges totaling around Rs 500-700 crore.

On April 1, the customs department inaugurated a new updated IT system for importers to pay duty, including an electronic cash ledger payment system, to ensure convenience of doing business.

Importers, on the other hand, allege that they are still having difficulties making payments through the ICEGATE system. In reaction to the crisis, customs officials have begun manual clearance of products in order to expedite trade.

Customs officials are meeting with trade representatives across India to resolve concerns and issues connected to IT system malfunctions.

To strengthen the country’s economy, the administration has been working on simplifying regulatory processes and boosting trade facilitation.

However, the current state of the customs IT system is likely to have a negative impact on trade, as importers continue to struggle with clearing their shipments.