New Delhi: India is actively seeking agreements with the United Arab Emirates, Australia, Russia, Japan and the East African Community under which esteemed trade privileges granted to trusted exporters, importers and logistics players in one country are recognized by the other country. said a person who was briefed on the development.
New Delhi: India is actively seeking agreements with the United Arab Emirates, Australia, Russia, Japan and the East African Community under which esteemed trade privileges granted to trusted exporters, importers and logistics players in one country are recognized by the other country. said a person who was briefed on the development.
Entering into these so-called Mutual Recognition Arrangements (MRAs) as part of a key measure to simplify business operations called the Authorized Economic Operators (AEO) program has several benefits for India.
Entering into these so-called Mutual Recognition Arrangements (MRAs) as part of a key measure to simplify business operations called the Authorized Economic Operators (AEO) program has several benefits for India.
The privileges accredited traders and companies receive under the Indian AEO scheme – faster clearance of shipments at ports, lower inspection rate, quicker tax refunds, the option of deferred customs payment and accepting a self-declaration of origin of goods – are available to them while in the country sign an MRA with India. In addition, partners of AEO-accredited Indian exporters in other countries also benefit from these advantages.
The privileges accredited traders and companies receive under the Indian AEO scheme – faster clearance of shipments at ports, lower inspection rate, quicker tax refunds, the option of deferred customs payment and accepting a self-declaration of origin of goods – are available to them while in the country sign an MRA with India. In addition, partners of AEO-accredited Indian exporters in other countries also benefit from these advantages.
The negotiations on MRAs would be conducted separately from trade talks, which are mainly about tariffs, said the person quoted above. Talks with the United Arab Emirates and Australia are at an advanced stage, the person said. The East African Community includes Burundi, DR Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda. The Central Board of Indirect Taxes and Customs (CBIC) now grants almost 5,600 trading participants – importers, exporters and logisticians – the status of AEO providers, customs brokers and warehouse operators – as they comply with supply chain standards and security norms. MRAs allow partner countries to reciprocate the privileges that the other country offers to the companies it accredits. The signing of MRAs is expected to provide a major boost to cross-border trade for participating nations as trade is an integral part of economic recovery. The AEO program is also at the heart of India’s efforts to make cross-border trade easier to do business with. AEO status is granted to companies based on full online processing of documents and physical inspection of the premises.
The negotiations on MRAs would be conducted separately from trade talks, which are mainly about tariffs, said the person quoted above. Talks with the United Arab Emirates and Australia are at an advanced stage, the person said. The East African Community includes Burundi, DR Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda. The Central Board of Indirect Taxes and Customs (CBIC) now grants almost 5,600 trading participants – importers, exporters and logisticians – the status of AEO providers, customs brokers and warehouse operators – as they comply with supply chain standards and security norms. MRAs allow partner countries to reciprocate the privileges that the other country offers to the companies it accredits. The signing of MRAs is expected to provide a major boost to cross-border trade for participating nations as trade is an integral part of economic recovery. The AEO program is also at the heart of India’s efforts to make cross-border trade easier to do business with. AEO status is granted to companies based on full online processing of documents and physical inspection of the premises.
Experts called the move to sign more MRAs a huge trade facilitation measure that will give Indian exporters a competitive advantage in other markets by reducing their time in ports. “The AEO scheme has significantly helped India’s foreign trade and extending the MRA to many more countries would further enhance India’s trade competitiveness,” said MS Mani, Partner at Deloitte India. “When a company from another country falls under its AEO. Its trading partner in India will also get the privileges due to the mutual recognition agreement even if the Indian company does not fall under the Indian AEO program,” said the first person quoted above the condition of anonymity.
Experts called the move to sign more MRAs a huge trade facilitation measure that will give Indian exporters a competitive advantage in other markets by reducing their time in ports. “The AEO scheme has significantly helped India’s foreign trade and extending the MRA to many more countries would further enhance India’s trade competitiveness,” said MS Mani, Partner at Deloitte India. “When a company from another country falls under its AEO. Its trading partner in India will also get the privileges due to the mutual recognition agreement even if the Indian company does not fall under the Indian AEO program,” said the first person quoted above the condition of anonymity.
The foundation of the AEO program is trust, the person explained. An email sent Tuesday to the Treasury Department spokesman seeking comments on the story went unanswered at the time of publication.
The foundation of the AEO program is trust, the person explained. An email sent Tuesday to the Treasury Department spokesman seeking comments on the story went unanswered at the time of publication.
