Union Budget 2026: Customs reforms to speed up approvals with use of tech, AI

NEW DELHI: Government on Sunday unveiled a string of steps for Customs and central excise, measures that will help in simplifying the tariff structure, support domestic manufacturing, and promote export competitiveness against the backdrop of global trade tensions.

Steps were also taken to promote ease of living with FM Nirmala Sitharaman proposing to reduce the tariff rate on all dutiable goods imported for personal use from 20% to 10%.




To help accelerate the country’s role and share in global trade, the FM proposed several measures for Custom processes to have minimal intervention for smoother and faster movement of goods and greater certainty to trade.

Regular importers with trusted long standing supply chains would be recognised in the risk system so that need for verification of their cargo every time can be minimised.

Sitharaman also said that export cargo using electronic sealing will be provided through clearance from the factory premises to the ship.

For import of goods which do not need any compliance, filing of bill of entry by a trusted importer and arrival of goods will automatically notify Customs for completing clearance approvals. “This will enable goods to be released immediately on arrival,” said Sitharaman.

The Customs warehousing framework would be transformed into a warehouse operator-centric system with self declarations, electronic tracking and risk based audit. “These reforms will move away from the current system of officer dependent approvals and reduce transaction delays and compliance costs,” said Sitharaman.

Approval for cargo clearance from various govt agencies would be seamlessly processed through a single and interconnected digital window by the end of the fiscal year. Sitharaman said a Customs-integrated system would be rolled out in two years as a single, integrated and scalable platform for all Customs processes.