Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Chaturvedi on Wednesday, 16 September 2026, called on the Customs department to significantly scale up its use of artificial intelligence (AI), machine learning (ML), and real-time analytics to reduce physical interaction with trusted taxpayers and lower transaction costs for businesses. Speaking at an event in New Delhi, Chaturvedi outlined a forward-looking vision centred on a near-touchless, near-paperless Customs experience.

The Technology-Driven Vision

Chaturvedi stressed that the department must accelerate deployment of AI, ML, and both cyclical and predictive analytics applications. The overarching goal, he said, is to build a unified ecosystem that recognises trusted taxpayers consistently across GST, Customs, and other indirect taxes — creating deeper synergy within India's broader indirect tax architecture.

Technology, he argued, should serve as a 'great enabler', particularly for businesses holding Authorised Economic Operator (AEO) status, where a near-digital experience should become the standard rather than the exception.

AEO Programme and the Trusted Taxpayer Ecosystem

The AEO programme is a voluntary compliance initiative under which Customs collaborates closely with supply-chain stakeholders to strengthen cargo security while facilitating legitimate trade. There are currently more than 6,000 entities with AEO certificates — covering importers, exporters, logistics providers, custodians, terminal operators, Customs brokers, and warehouse operators.

Chaturvedi underlined that greater technology adoption would directly lower cargo dwell costs and overall transaction costs for businesses operating within this ecosystem. Notably, reducing dwell time has been a persistent challenge for Indian trade facilitation, with industry bodies long flagging it as a drag on export competitiveness.

MSME Support and Facilitation Schemes

The CBIC chief also highlighted the need for greater support to micro, small and medium enterprises (MSMEs), calling for targeted outreach programmes to help them benefit from existing Customs facilitation schemes. He specifically mentioned deferred-duty payment schemes such as the Eligible Manufacturer Importer (EMI) programme and the AEO programme, urging the department to 'handhold' MSMEs through these mechanisms.

This comes amid broader government efforts to ease the compliance burden on smaller businesses, which often lack the administrative capacity to navigate complex Customs procedures independently.

Coordination, Data Integration and Global Agreements

Beyond domestic reforms, Chaturvedi also stressed the importance of seamless coordination among government agencies, deeper data integration across departments, and wider global reciprocity through Mutual Recognition Agreements (MRAs). Expanding MRAs would allow Indian AEO-certified entities to receive reciprocal facilitation from partner countries' Customs administrations — a key lever for boosting export ease.

What This Means for Indian Trade

India has been pushing to improve its trade facilitation rankings, and a technology-first Customs architecture aligns with commitments under the WTO Trade Facilitation Agreement. With global supply chains reconfiguring and India positioning itself as a manufacturing and export hub, reducing Customs friction is increasingly a strategic — not merely administrative — priority. The CBIC's next steps in rolling out AI-led tools and expanding the AEO ecosystem will be closely watched by industry and trade bodies.