India eyeing customs pact with Japan, S Africa, more nations, says CBIC head
This story was originally published at 15:53 IST on 28 November 2024
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NEW DELHI – Central Board of Indirect Taxes and Customs Chairman Sanjay Kumar Agarwal said that India is actively pursuing negotiations to sign mutual recognition agreements with multiple nations, including Japan and South Africa. Under the agreement, the two countries will issue mutual recognition agreement licences to trusted companies and conglomerates to carry out bilateral trade. These identified companies get preference at the time of customs clearance and other regulatory leeway.
There are at least 30 nations with whom we are looking to sign mutual recognition agreements, Agarwal said addressing the Global Authorised Economic Operator Conference. India is also in advanced stages of discussion with the eight-nation East African Community and New Zealand, Agarwal said.
Informist had exclusively reported on Apr. 8 that India was negotiating to sign mutual recognition agreements with these four trade partners.
A senior finance ministry official told Informist that the customs agreement with Japan and South Africa will likely be signed within the next six months. Once these two agreements are signed, India will sign the pacts with the East African Community and New Zealand, the official said.
Informist had also reported that India was looking to sign a similar deal with Russia in October. Agarwal Thursday said that India's latest mutual recognition agreement was signed with Russia, making it the eighth partner nation to have a cross-border trade facilitation deal with New Delhi. This cross-border trade facilitation for customs clearance is different from a free trade agreement.
The seven other nations with whom India has an agreement are the US, the United Arab Emirates, South Korea, Hong Kong, Taiwan, Singapore, and Australia.
The benefits that accredited merchants and companies get under these schemes include priority customs processing, lower inspection rates, and acceptance of self-declaration of origin of goods, which is a vital certificate for cross-border trade. The push for these agreements is in line with the government's thrust on expanding its footprint in global trade and diversifying its trade partners. End
Reported by Priyasmita Dutta
Edited by Akul Nishant AKhoury
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