India’s Vision to Become the World’s Most Trusted Trade Hub
India aspires to establish itself as the world’s most efficient and trusted trade hub, focusing on enhanced trade facilitation, expanded adoption of the Authorised Economic Operator (AEO) programme, and the integration of innovative policies, according to Revenue Secretary Sanjay Malhotra. Speaking at the Global AEO Conference, Malhotra outlined key initiatives aimed at achieving this vision.
Key Highlights from the Address
- Trade Facilitation Goals
India’s vision emphasizes setting new benchmarks in global trade connectivity by expanding participation in the AEO programme and automating port operations.
Of 20 major ports, 17 are already fully automated, with efforts underway to make all ports fully electronic and operational 24/7.
- Technology and Trust as Pillars
The Revenue Department has adopted a technology-driven, trust-based approach in tax and trade administration.
Services like appeals, refunds, and payments are now primarily conducted online, improving efficiency and transparency.
- Expansion of AEO Programme
Over 6,000 entities are recognized under India’s AEO programme, handling approximately 37% of bills of entry.
The AEO framework, under the World Customs Organization (WCO) SAFE Framework of Standards, ensures streamlined cargo security through partnerships with key stakeholders in the supply chain.
- Mutual Recognition Agreements (MRAs)
India is actively expanding its MRA programme, which fosters reciprocal recognition of AEO status between countries to facilitate global trade.
Joint Action Plans (JAPs) have been signed with several nations, including Uganda, Japan, Singapore, the UK, and BRICS countries, with a recent agreement signed with Brazil.
- Global Support for AEO Implementation
India pledged support to countries with less capacity to develop robust AEO programmes, highlighting its leadership role in international trade facilitation.
About the AEO Programme
Launched: 2011, strengthened in 2016.
Administered by: Directorate of International Customs under CBIC.
Objective: Enhance cargo security and streamline trade processes through collaboration with supply chain stakeholders, including importers, exporters, logistics providers, and customs brokers.
Benefits: Faster clearance times, reduced costs, and improved trade efficiency for compliant entities.
Conclusion
India’s proactive initiatives in trade facilitation, technological adoption, and trust-based strategies underscore its ambition to become a global leader in trade. By strengthening the AEO programme, enhancing automation, and fostering international collaboration, India is well-positioned to redefine global trade standards.
