CBIC Introduces Auto-Approval for Incentive Bank Account and IFSC Code Registration to Streamline Customs Processes

The Government of India, through the Ministry of Finance and the Central Board of Indirect Taxes and Customs (CBIC), has introduced a significant update to enhance the efficiency of customs procedures. Circular No. 24/2025-Customs, dated October 7, 2025, outlines a new mechanism for the auto-approval of incentive bank account and IFSC code registration requests across all customs locations. This initiative is set to simplify processes for exporters and improve their overall experience with customs operations.

Key Highlights of the Circular

Auto-Approval Mechanism:
- Exporters can now benefit from an automated system that approves requests for registering the same incentive bank account and IFSC code for an Importer Exporter Code (IEC) across multiple customs locations.
- If the combination of bank account and IFSC code has already been approved at one customs location, the system will automatically approve it at other locations without manual intervention.
Existing Workflow Unchanged:
- The submission process for requests remains the same. However, in cases eligible for auto-approval, the system will directly grant approval without routing the request to the Port officer for manual processing.
Integration with PFMS:
- Once the system approves the request, it will continue to flow to the Public Financial Management System (PFMS) for validation, ensuring compliance with the existing process.
Enhanced Efficiency:
- This initiative is expected to significantly reduce processing times, streamline operations, and provide a seamless experience for exporters dealing with IGST refunds and drawback purposes.

Background and Benefits

Previously, exporters had to apply for AD code and IFSC registration for incentive bank accounts at each port where they intended to transact. Manual approval processes often led to delays, even though mechanisms were in place to expedite applications submitted before 2 PM. With the introduction of auto-approval, exporters can now enjoy faster processing times, reduced administrative burden, and improved operational efficiency.

This move aligns with CBIC’s commitment to leveraging technology to simplify customs procedures and enhance trade facilitation. By automating repetitive tasks, the customs department can focus on more critical aspects of trade regulation and compliance.

What Exporters Need to Know

Exporters should continue submitting their requests through the ICEGATE portal as per the existing workflow.
Auto-approval will apply only to cases where the same bank account and IFSC code combination has already been approved at one customs location.
Any issues or difficulties encountered during the process can be reported to the CBIC for resolution.

Conclusion

The auto-approval mechanism for incentive bank account and IFSC code registration is a welcome step towards modernizing customs procedures in India. By reducing manual intervention and leveraging technology, the CBIC is ensuring faster processing, greater transparency, and improved ease of doing business for exporters. This initiative is yet another milestone in India’s journey toward becoming a global trade hub.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: CBIC, Ministry of Finance, Govt. of India

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