As expectations build ahead of the Union Budget for FY27, India Inc is calling for a GST-style overhaul of the customs duty regime to boost trade facilitation, reduce disputes, and enhance ease of doing business.

Key industry demands include rationalisation of customs duty rates, pruning of duty slabs, and the rollout of a true single-window clearance system for exports and imports. Businesses are also seeking definitive timelines for the issuance of Authorised Economic Operator (AEO) certification and a formal charter to govern investigations conducted by the Directorate of Revenue Intelligence (DRI).

A major concern highlighted by industry experts is the fragmented clearance process, which currently requires importers and exporters to approach multiple government departments and ministries.

Deloitte India Partner Gulzar Didwania said this complexity acts as a major barrier to trade.

"That is becoming a big hindrance in doing trade. While I am ready to comply with all these things, but at least I should know that this is the department where I should go.

"Customs already has a provision under the Customs Act, which empowers them to act as a single window for all these import-export related licensing requirements. We want this facility to be launched as soon as possible, so that it actually achieves the real, true spirit of single window clearance," Didwania said.

Industry players are also pressing for time-bound approvals under the AEO scheme. Entities with AEO certification benefit from trade facilitation support from foreign customs administrations, improving their global trade efficiency.

In addition, the industry is seeking a framework similar to the guidelines issued for the Directorate General of GST Intelligence (DGGI) to bring greater transparency and predictability to DRI investigations, Didwania added.

On dispute resolution, experts emphasised the need to digitise the entire litigation process and introduce a mechanism to unlock revenue stuck in customs disputes. As of March 2024, a total of 38,014 cases involving customs duty of Rs 1.52 lakh crore remain under litigation.

EY India Tax Partner Saurabh Agarwal said tax certainty is critical to achieving India’s ambition of becoming a USD 5 trillion economy.

"Crucially, the architecture of this scheme must shift away from the "complete settlement of a pending litigation" approach to adopting an 'issue-wise' or 'year-wise' settlement mechanism. Such a pragmatic move would not only unlock stuck revenue but also foster a predictable tax environment essential for global investors," Agarwal said.

He noted that while schemes such as Sabka Vishwas and Vivad se Vishwas successfully reduced disputes in excise, service tax and income tax, the absence of a similar framework for customs remains a key gap in the ease-of-doing-business agenda.

Echoing similar views, KPMG Partner and National Head, Indirect Tax, Abhishek Jain said that amid global uncertainty and ongoing tariff wars, the industry is looking to Budget 2026 for stronger policy support for Make in India.

Expectations include rationalisation of customs duties on key raw materials to improve manufacturing competitiveness, simplification of duty slabs to reduce compliance friction, and a one-time window to resolve legacy disputes.

Currently, customs duty follows an eight-slab structure, with industry stakeholders pushing for a reduction to five or six slabs.

"Faster closure of related-party valuation approvals for importers with maybe post-clearance risk-based audits instead of the current tedious process is seen as a practical step towards improving ease of doing business and supply-chain efficiency," Jain said.