Decoding CAAR: Insights, Challenges, and Pathways for Reforms

This study critically evaluates Customs Authority for Advance Rulings (CAAR) in meeting its statutory mandates, particularly its adherence to the 90-day timeline for issuing rulings, the binding nature of its decisions, and its operational efficiency. Employing a mixed-methods approach, the research integrates qualitative insights from stakeholder interviews with quantitative analysis of advance rulings issued between January 2021 and August 2024. Comparative and institutional analyses benchmark CAAR’s performance against global best practices from jurisdictions such as the United States, Canada, and Australia. Findings reveal significant progress in decentralisation and stakeholder satisfaction compared to its predecessor, the Authority for Advance Rulings (AAR). However, systemic inefficiencies persist, including delays caused by reliance on port commissioners for inputs, uneven workload distribution across benches, and limited nationwide applicability of rulings. Drawing on international models, the study proposes actionable reforms to enhance CAAR’s efficiency and alignment with global standards. Recommendations include establishing in-house technical expertise to reduce dependence on external inputs, adopting nationwide applicability of rulings, extending their validity period, and leveraging AI-driven tools for case management and drafting. Enhancing transparency through detailed public disclosures and implementing robust performance monitoring frameworks are also emphasised. By addressing identified gaps, CAAR can better serve domestic traders. The findings provide a foundation for reform to ensure CAAR’s long-term relevance and effectiveness.