Interview | ‘Simplification of processes to help faster turnaround for businesses’: Vivek Chaturvedi

CBIC chairman Vivek Chaturvedi is confident about meeting Budget targets and details number of reform measures that have been announced to shore up approvals using technology. Excerpts:
A number of reform measures have been announced on the Customs side in the Budget. What is the strategy behind this?■ The FM, in her budget announcement, said, the focus is definitely on Customs, primarily on two parts. One is a lot of Customs duty exemptions on goods and the second is simplification of processes and trying to ease certain pain points which could lead to bottlenecks, which could lead to faster dwell time of cargo, ease of congestion, quicker turnaround time for businesses. Both sets of measures also complement each other.

Now on the rates part, it’s been a very carefully calibrated and nuanced approach that we have taken. It’s not really a rationalisation whole hog if you look at it. It’s been very specific. We’ve looked at our energy security. We’ve done away with Customs duties for setting up nuclear power plants. We have provided exemption for import of monazite which is a critical rare earth and goes into manufacture of magnets for electric vehicles. There are several measures that have been announced.

For ease of living, we have done reforms on baggage rules that will help people who travel abroad, tourists. Since 2016 baggage rules have not been amended. There was a 10-year hiatus.

There is a lot of emphasis on using technology to speed up approvals. What are the next steps?
■ We already have a strong IT backbone. What is currently the state of play is that it’s dispersed. We are trying to create one integrated system. There is a two year time frame for this. The expression of interests are out and we hope to have vendors appointed soon. The idea, to have an integrated application and it will lead to a better user experience, faster turnaround time, and more agility. If I need to assess a risk, why should I have a half an hour window for assessing a risk? The risk assessment should be instantaneous. We are trying to do. Once we are able to further strengthen the IT backbone, we will also be in a position to also roll out more and more agile services to our stakeholders.

Are you confident of meeting the Budget targets on the Customs duty receipts for FY27?
■ We have been very conservative in our estimates. The targets will be met.

How do you see GST revenues after rate rationalisation?
■ Look, if you look at the collection figures that came on Sunday, they are more or less comparable, slightly more than the figures of Jan 25. And Jan 25 was prior to the rationalisation. With this sort of developments on the supply side and the way revenues are, if not in immediate terms, gradually things will pick up and ultimately we should have resilience of the economy and growth of GDP taking care of revenue buoyancy.