India Aims to Become World's Most Efficient, Trusted Trade Hub, Says Revenue Secy

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

"We aim to set new benchmarks in trade facilitation and global connectivity," Malhotra said while delivering the valedictory address at the Global AEO Conference here.

He further said technology and trust are two pillars of the revenue department and underscored the importance of expansion of Mutual Recognition Agreement (MRA) programme to include more regional and bilateral partners.

India has been adopting technology both in direct and indirect tax administration, he said, adding that most of the services are online including appeals, refunds and payments.

"We actually generate billions and billions of bills of entry and shipping bills every year. To be able to do this without the help of technology is not possible," he said, adding, India aims to make all its ports automated.

Similarly, he said, "It is now our endeavour to be able to make all services at all ports and at all times, online and electronic." Of 20 major ports, 17 are fully automated, he said.

Expanding the AEO programme in the last few years has been part of the trust-based strategy.

About 6,000 entities have been recognised under this AEO programme and 37 per cent of bills of entries are through these entities.

He assured India's support in developing a robust AEO programme in countries with less capabilities and emphasised that AEO helps in re-organising and re-engineering tax system that relies on trust-based strategies.

AEO is a programme under the aegis of the World Customs Organisation (WCO) SAFE Framework of Standards to secure and facilitate Global Trade.

AEO is a voluntary compliance programme which enables Indian Customs to enhance and streamline cargo security through close cooperation with the principal stakeholders of the international supply chain viz. importers, exporters, logistics providers, custodians or terminal operators, custom brokers and warehouse operators.

Indian AEO programme started in 2011 and was strengthened in 2016. It is implemented by Directorate of International Customs of  CBIC.

By this agreement, AEO status of the MRA partner's AEO programme is recognised by each other and trade facilitation is extended reciprocally.

India has also signed Joint Action Plans (JAP) to conclude an MRA with Uganda, East African Community, South Africa, Japan, Bahrain, Singapore, New Zealand, the UK, Belarus and BRICS. Joint action plan with Brazil was signed during the conference to enter into an MRA.