india-advances-global-trade-with-aeo-mra-expansion

India aims to become the world’s most efficient and trusted trade hub by increasing the participation of authorised economic operators (AEOs), expanding integrated free zones, and implementing innovative policies, Revenue Secretary Sanjay Malhotra said on Friday.

 

In his valedictory address at the Global AEO Conference, Malhotra said India seeks to establish new benchmarks in trade facilitation and global connectivity. He emphasised that technology and trust are central to the country’s revenue strategy and highlighted the importance of expanding the Mutual Recognition Agreement (MRA) programme to include more regional and bilateral partners.

 

“India is adopting technology in both direct and indirect tax administration, with most services now available online, including appeals, refunds, and payments,” Malhotra said. “We generate billions of bills of entry and shipping bills annually, and doing this without technology is not possible. Our goal is to make all ports automated.”

 

Currently, 17 out of India’s 20 major ports are fully automated, with the aim of making all services at every port online and electronic.

 

The AEO programme has been a key component of India’s trust-based strategy. Since its inception in 2011 and subsequent strengthening in 2016, nearly 6,000 entities have been recognised under the programme, and 37 per cent of bills of entry are processed through AEO-approved entities.

 

Malhotra assured India’s support in helping develop robust AEO programmes in countries with less capability, stressing that the AEO programme aids in reorganising and re-engineering tax systems based on trust.

 

The AEO programme, under the World Customs Organisation’s (WCO) SAFE Framework of Standards, is a voluntary compliance initiative designed to enhance cargo security and streamline customs processes through cooperation with key stakeholders in the global supply chain, including importers, exporters, logistics providers, customs brokers, and warehouse operators.

 

India has also signed Joint Action Plans (JAP) with several countries, including Uganda, the East African Community, South Africa, Japan, Bahrain, Singapore, New Zealand, the UK, Belarus, and BRICS nations, to establish MRAs. A joint action plan with Brazil was signed during the conference to finalise an MRA.