CBIC Introduces Automated Out of Charge Process for AEO T2 and T3 Clients [Read Circular]

The Central Board of Indirect Taxes & Customs ( CBIC ), under the Ministry of Finance, issued Circular No. 01/2025-Customs, dated January 1, 2025, to announce the introduction of the "Automated Out of Charge" (Auto-OOC) system. This new system is specifically designed for Authorized Economic Operators (AEOs) in Tier 2 (T2) and Tier 3 (T3) categories.

The Central Board of Indirect Taxes & Customs (CBIC) is working to simplify trade processes more transparently and aligned with modern practices. These efforts have improved several areas of trade facilitation. CBIC is launching an Automated Out of Charge (Auto-OOC) system to ensure better compliance and ease the workload on businesses. This system is designed for Authorized Economic Operators (AEOs) in Tier 2 (T2) and Tier 3 (T3) and will be used in cases where Container Control Register (CCR) verification is not required.

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Eligibility for Auto-OOC: In the first phase, Bills of Entry (BEs) for AEO T2 and T3 clients will qualify for Auto-OOC if they meet the following conditions:

• The BE is not selected for examination, scanning, or any No-Objection Certificate (NoC) from Participating Government Agencies (PGAs).
• The assessment of the BE has been completed.
• The BE is authenticated via a One-Time Password (OTP) for cases involving duty deferment.

Risk-Based Automation: The Auto-OOC system will operate on a risk-based approach but customs officers retain the authority to override this automation if intelligence or specific information warrants placing a “HOLD” on the process.

Implementation Date: The Auto-OOC facility will be implemented from January 1, 2025. This move is expected to further streamline trade operations, reduce the overall time required for processing shipments (dwell time), and promote smoother transactions.

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Stakeholder Communication: The CBIC has requested wide publicity of this initiative through Trade Notices and Public Notices. All relevant stakeholders within the jurisdiction are to be informed about the changes. Any challenges faced by stakeholders during the transition should be promptly reported to the CBIC for resolution.

To Read the full text of the Circular CLICK HERE

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