India Actively Pursuing Mutual Recognition Agreements for Trade Facilitation
India is actively pursuing negotiations to sign mutual recognition agreements (MRAs) with multiple nations, including Japan and South Africa, according to Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal. These agreements will allow trusted companies and conglomerates to receive preferential treatment during customs clearance and other regulatory processes.
Agarwal, speaking at the Global Authorised Economic Operator Conference, stated that India is looking to sign MRAs with at least 30 nations. Discussions are also in advanced stages with the eight-nation East African Community and New Zealand.
A senior Finance Ministry official had previously indicated that the customs agreements with Japan and South Africa could be signed within the next six months. Following these, India plans to sign pacts with the East African Community and New Zealand.
India recently signed an MRA with Russia, making it the eighth partner nation with a cross-border trade facilitation deal with India. Other nations with existing MRAs include the US, the United Arab Emirates, South Korea, Hong Kong, Taiwan, Singapore, and Australia.
These agreements offer accredited merchants and companies several benefits, including priority customs processing, lower inspection rates, and acceptance of self-declaration of origin of goods. This is crucial for facilitating smooth cross-border trade.
The push for these agreements aligns with the government's focus on expanding its global trade footprint and diversifying its trade partners.