“Streamlining Import Duty Payments: The ECL Initiative”

Introduction:

In a bid to modernize and streamline import duty payments, the Indian government has introduced the Electronic Cash Ledger (ECL) as the designated mode of payment for goods imported through International Courier terminals, effective from March 01, 2024.

Implementation Timeline:

The journey towards adopting ECL began with its implementation for import duties on cargo processed through Electronic Data Interchange (EDI) at Seaports, Airports, Inland Container Depots (ICDs), and Land Customs Stations (LCSs) from April 01, 2023. Subsequently, the scope was extended to cover International Courier Terminal locations.

Payment Flexibility:

With the introduction of ECL, the Express Industry gains the flexibility to make import duty payments through multiple banks, leveraging internet banking and NEFT/RTGS transactions from their preferred bank.

Trade Assistance:

To ensure a smooth transition for stakeholders, the Directorate General of Systems, Central Board of Indirect Taxes and Customs (CBIC), conducted registration melas and webinars from October to December 2023. These initiatives aimed to familiarize the trade community with the new payment system before its official launch for the Express Cargo Industry.

Pilot Phase Success:

A pilot phase commenced on January 15, 2024, and was gradually expanded to encompass key locations such as Delhi, Bengaluru, and Mumbai, along with all other International Courier Terminal locations. The pilot phase has been running successfully since February 12, 2024, demonstrating the efficacy of the system without encountering any operational glitches.

Enhancing Ease of Doing Business:

The adoption of ECL as the preferred mode of payment for import duties is expected to enhance the ease of doing business for the trade community. By providing a streamlined and technologically advanced payment mechanism, the government aims to facilitate smoother trade operations and promote efficiency in the import process.