India, Japan to recognise AEO schemes

  • The agreement was signed on the sidelines of a meeting of the World Customs Organisation (WCO) Customs Co-operation Council meeting.

Gireesh Chandra Prasad
First Published24 Jun 2023, 09:42 PM IST
File image. (BLOOMBERG)
File image. (BLOOMBERG)

New Delhi: India and Japan have agreed on a blueprint to mutually recognise the trade facilitation schemes offered by each of the nations in a bid to support businesses in both the countries and to facilitate bilateral trade.

The Central Board of Indirect Taxes and Customs (CBIC) said on Saturday that it signed a joint action plan with the customs authorities in Japan at a meeting in Brussels. The action plan lays out the "roadmap for entering into a Mutual Recognition Arrangement (MRA) for authorised economic operators (AEOs) of both countries in the near future," CBIC said in a social media post.

The agreement was signed on the sidelines of a meeting of the World Customs Organisation (WCO) Customs Co-operation Council meeting.

"The MRA has the potential for giving India-Japan trade a major fillip" and for enhancement of opportunities for the industry at both ends, said CBIC.

Mint reported on 8 June that India is actively seeking to strike deals with the UAE, Australia, Russia, Japan and the East African Community under which highly valued trade privileges given to trusted exporters, importers and logistics players in one country will be honoured by the other country.

AEO is a key scheme meant to facilitate ease of doing business. Entering into these mutual recognition agreements (MRAs) has several benefits for India.

The privileges that accredited merchants and businesses get under India’s AEO scheme -- 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 -- will be available to them in the country signing an MRA with India. Besides, AEO-accredited Indian exporters’ partners in other countries will also get these benefits.

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.

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First Published:24 Jun 2023, 09:42 PM IST
HomeEconomyIndia, Japan to recognise AEO schemes

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