Govt Initiates Customs Pacts To Facilitate Cross-Border Trade

New Delhi, Dec 18 (KNN) India is poised to finalise trade facilitation agreements with five additional key partners, which is scheduled for finalisation within the next three months, reported Mint.

These agreements will grant exporters and importers valuable port and customs advantages, including simplified inspections, expedited tax refunds, and postponed duty payments, applicable to almost half of India's external trade volume, as reported by Mint.

The Central Board of Indirect Taxes and Customs (CBIC) is prepared to sign such agreements with Australia and Russia in the near future, followed by deals with Japan, South Africa and the eight-nation East African Community by March, as communicated by a knowledgeable source told Mint.

Presently, India has five existing customs agreements, established with the United States (US), the United Arab Emirates (UAE), South Korea, Hong Kong, and Taiwan.

The new agreements will establish mutual recognition between India's highly regarded Authorised Economic Operator (AEO) program and its corresponding programs in the partner countries, as noted by the aforementioned individual under anonymity.

Under these bilateral agreements, the accreditation programs, granting customs privileges to trusted merchants and logistics operators in each partner country, will be mutually recognised.

This will not only empower Indian exporters and importers to acquire privileges in the partner country but also afford their clients in that nation the opportunity to enjoy analogous benefits, even if they are not formally affiliated with their respective home country's accreditation.

(KNN Bureau)