CBIC notifies phase-wise implementation of Electronic Cash Ledger (ECL) in Customs w.e.f 1st April, 2023

Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 18/2023 and Circular No. 09/2023 to provide for phased wise implementation of Electronic Cash Ledger (ECL) functionality in Customs. ECL functionality provides the importer, exporter or any person liable to pay duty, fees etc., under the Customs Act, to make a non-interest bearing deposit with the Government. All the deposits classes were exempted till 31st March, 2023.

Key Highlights of the Circular are:

1. In the first phase from 1st April, 2023 till 30th April, 2023, the exemption to deposit shall be restricted to the following, namely, –
   1. Deposits with respect to Goods imported or exported in Customs stations where Customs Automated System is not in place;
   2. Deposits with respect to Accompanied baggage;
   3. Deposits with respect to Goods imported or exported at International Courier Terminals;
   4. Deposits other than those used for making electronic payment of-
      1. any duty of customs, including cesses and surcharges levied as duties of customs;
      2. Integrated tax;
      3. Goods and Service Tax Compensation Cess;
      4. interest, penalty, fees or any other amount payable under the Act, or Customs Tariff Act, 1975.
2. In second phase from 1st May, 2023, the exemptions cited above would continue, except for the deposits with respect to goods imported or exported at International Courier Terminals. In other words, payments relating to Courier shipments would be required to be done through ECL from 1st May, 2023 onwards.
3. After introduction of second phase, subsequently the following functionalities shall be developed in ECL.
   1. Registration for availing ECL: Deposits under ECL provision requires the person to be registered at ICEGATE portal and to create ECL Account. In addition to importers/exporters (IECs), the customs brokers, couriers who are making payments on behalf of the importers/exporters are also enabled in ECL. Similarly, the importers who are assigned Unique Identification Number (UIN) under GST are also enabled in ECL.
   2. Deposit to ECL: A deposit challan may be generated at said portal for a sum chosen by the person, and deposit made in ECL using the authorised payment modes. The amount deposited shall be visible on the ECL maintained on the said portal.
   3. Payment of liabilities using ECL: The payment using the deposit available in ECL may be made by selecting the payment challan generated at ICES/ECCS or other application, with ECL as a mode of payment. A functionality to make payment without first depositing into ECL is also provided, that allows user to select the payment challan and choose amongst internet banking/NEFT/RTGS options and complete the payment process. In such situation, at the back-end, a deposit challan for the same amount will be generated on the portal, deposited in ECL and debited from ECL as payment. In case, there is a rejection of payment challan at the application end, the payment can be re-initiated from the ECL by log into the portal.
   4. Refund of balance in ECL: In case refund is applied for balance of deposits in ECL, the amount applied for will no longer be available for use and refund decided and thereafter credited to the bank account of the person registered on customs automated system.

Source: Central Board of Indirect taxes and Customs (CBIC)