In exercise of the powers conferred by clauses (b) and (c) of subsection (1) of section 7 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes and Customs hereby makes the following further amendments

## Policy Analysis Report: Customs Notification No. 86/2022 **1. Executive Summary:** This report analyzes Customs Notification No. 86/2022, issued by the Ministry of Finance, Department of Revenue, which amends Notification No. 63/1994-Customs N.T. The amendment specifically pertains to customs procedures related to trade with Bangladesh, modifying the entry for Phulbari. It broadens the allowed trade routes to include not only a road connecting Phulbari and Bangla Bandhu, but also a pipeline connecting Numaligarh Refinery Ltd. in India to Parbatipur in Bangladesh. The core purpose of this amendment is to facilitate trade and infrastructure development between India and Bangladesh by enabling the use of pipelines for transporting goods. **2. Introduction:** This report aims to provide a comprehensive overview of Customs Notification No. 86/2022 based solely on the provided policy text. The analysis will focus on the changes introduced by this notification, their likely rationale, and potential impact on relevant stakeholders. **3. Policy Overview:** * This notification is an amendment to the original policy: Notification No. 63/1994-Customs N.T. * **Core Objective(s):** Based on the text, the core objective of this *amendment* is to update and expand the designated routes for trade between India and Bangladesh, specifically concerning the Phulbari entry point. The amendment allows for the inclusion of a pipeline, indicating a desire to facilitate the transportation of goods via this infrastructure. **4. Background and Rationale:** This notification is an amendment and expands the allowed routes under the Phulbari entry point. The amendment introduces the Numaligarh Refinery Ltd. pipeline, likely indicating a growing need to transport goods, specifically those related to the refinery, via pipeline. This change may reflect an effort to improve the efficiency of trade or accommodate new infrastructure developments between the two countries. **5. Key Provisions / Changes:** This notification introduces a change to the entry for Phulbari under the serial number relating to Bangladesh within Notification No. 63/1994-Customs N.T. * **Specific Part Changed:** The entry in column 4 of the TABLE in Notification No. 63/1994-Customs N.T., against serial number 2 (Bangladesh) and item 13 (Phulbari) is being altered. * **New Rule/Provision:** The original entry in column 4 is replaced with the following: * "a Road connecting Phulbari in India and Bangla Bandhu in Bangladesh." * "b The pipeline of Ms Numaligarh Refinery Ltd. connecting NRL Siliguri Marketing Terminal in India to Parbatipur in Bangladesh." * **Difference/Effect of Change:** The change adds a pipeline route to the existing road route for the Phulbari entry point. This effectively expands the methods and types of goods that can be traded through this designated point, potentially facilitating the movement of goods transported via pipeline. **6. Target Audience and Stakeholders:** Based on the text, the stakeholders directly affected by this amendment include: * Businesses involved in trade between India and Bangladesh, particularly those utilizing or planning to utilize the Phulbari entry point. * Numaligarh Refinery Ltd. (NRL) and related entities involved in the pipeline operation and the transportation of goods through it. * Customs officials responsible for regulating trade and implementing customs procedures at the Phulbari entry point. * Entities operating in Bangla Bandhu in Bangladesh and Parbatipur in Bangladesh, including any counterparties to NRL. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Central Board of Indirect Taxes and Customs (CBIC) is the responsible body for issuing this notification and, presumably, overseeing its implementation. Local customs officials would be responsible for applying the new provisions at the Phulbari entry point. * **Timelines/Procedures:** The notification is effective from the date of its issuance, September 30, 2022. Specific procedures for customs clearance related to the pipeline are not detailed in the provided text but would likely be established by the CBIC and implemented by local customs officials. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to: * Facilitate the transportation of goods via the NRL pipeline, potentially increasing trade volume between India and Bangladesh. * Improve the efficiency of trade operations by providing an additional mode of transport. * Support infrastructure development and economic cooperation between the two countries. * The impact will likely be seen in streamlined customs procedures for pipeline-transported goods and potential growth in related trade volumes. **9. Conclusion:** Customs Notification No. 86/2022 represents a targeted amendment to existing customs regulations, specifically expanding the allowed trade routes through the Phulbari entry point to include a pipeline. This change reflects an effort to modernize trade infrastructure, facilitate increased trade volume, and support economic collaboration between India and Bangladesh. The amendment primarily affects businesses involved in cross-border trade through Phulbari, particularly those utilizing the NRL pipeline, and necessitates adjustments to existing customs procedures to accommodate this new trade route.

Key Entities Referenced