India, Russia explore trade facilitation deal for quicker port clearance

livemint.com:

Mint last week that India and the UAE have concluded a mutual recognition agreement of the AEO programme and that India is in discussions with the Russian Federation for a mutual recognition agreement or MRA. Signing MRAs is a key element of India’s efforts to step up ease of doing business in international trade. Revenue secretary Sanjay Malhotra told Mint on Saturday that simplification of taxation and facilitation of tax payers will remain a priority for the government.

“Reducing the dwell time (of consignments) in ports, both for imports and exports is a priority. Reducing the compliance burden is also a priority," Malhotra said. MRAs are believed to give a major fillip to trade and step up opportunities for the industry in both the participating nations.

Once an MRA is signed, the privileges that accredited merchants and businesses get under India’s AEO scheme will be available to them in the country signing an MRA with India. These include quicker clearance of shipments at ports, lower inspection rate, quicker tax refunds, facility for deferred duty payment and acceptance of self-declaration of origin of goods. The AEO-accredited Indian exporters’ partners in other countries will also get these benefits.

So far, India has given the status of AEO to close to 5,600 trade participants—importers, exporters, logistics providers, custom brokers and warehouse operators--as they are compliant with supply chain standards and security norms. An email sent to the finance ministry spokesperson on Tuesday morning seeking comments for the story remained unanswered. During the pandemic, India had simplified cross-border trade procedures to reduce paper work and the physical interface between merchants and officers.