India, Japan to agree on AEO schemes

India and Japan have recently concluded an agreement that establishes a framework for the mutual recognition of trade facilitation measures implemented by both countries. The primary objective of this arrangement is to strengthen the business environment in both nations.

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India and Japan have reached an agreement outlining a plan to reciprocally acknowledge the trade facilitation initiatives provided by each country. This arrangement aims to bolster businesses in both nations and streamline bilateral trade processes.

In Brussels, the Central Board of Indirect Taxes and Customs (CBIC) announced its collaboration with Japanese customs authorities. This significant development emphasizes their commitment to cooperation and outlines a strategic roadmap for future endeavours.

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.

During the Customs Co-operation Council meeting of the World Customs Organisation (WCO), the agreement was formalized on the sidelines. The Central Board of Indirect Taxes and Customs (CBIC) expressed its optimism about the Memorandum of Understanding (MRA), acknowledging its potential to significantly boost India-Japan trade.

CBIC further emphasized that this agreement would create enhanced opportunities for the industry in both countries. According to Mint’s report on June 8, India is actively engaged in negotiations with the UAE, Australia, Russia, Japan, and the East African Community to establish similar agreements. These agreements aim to ensure that esteemed trade privileges granted to trusted exporters, importers, and logistics players in one country are recognized and honoured by the other country.

The Authorized Economic Operator (AEO) program plays a pivotal role in promoting business simplicity. By engaging in mutual recognition agreements (MRAs), India can reap numerous advantages. These agreements offer several benefits to India in terms of facilitating ease of doing business.