India, Mercosur Sign Protocol To Allow Electronic Certificates Of Origin For Paperless Trade

New Delhi, Sep 15 (KNN) India and Southern Common Market (Mercosur) have signed an additional protocol to allow electronic Certificates of Origin (CoO) under their preferential trade agreement, paving the way for paperless trade and faster customs procedures between the two sides.

The move will give electronically issued CoOs the same legal validity as paper certificates and is expected to reduce transaction costs and processing time associated with their issuance and verification.

Digitalisation Of Trade Documentation

A Certificate of Origin is required by importers to establish that goods originate from an eligible FTA partner and qualify for preferential tariff concessions, reported PTI.

Under the protocol, electronic CoOs will be issued and digitally signed in accordance with the respective domestic laws of India and Mercosur members.

The Commerce Ministry said the move would modernise customs procedures and improve the efficiency of preferential trade under the existing India-Mercosur Preferential Trade Agreement (PTA).

PTA Covers Over 900 Tariff Lines

Mercosur comprises Brazil, Argentina, Bolivia, Uruguay and Paraguay. The India-Mercosur PTA came into effect on June 1, 2009.

The agreement provides preferential tariff concessions on 450 tariff lines or product categories by India and 452 tariff lines by Mercosur.

The protocol will come into force after India and the Mercosur parties complete their respective internal procedures and notify each other.

It was signed by Commerce Secretary Rajesh Agarwal, Ambassador of Uruguay to India Alberto Guani and Ambassador of Paraguay to India Fleming Raul Duarte Ramos.

(KNN Bureau)