The Indian government has been making various optimistic moves and policies toward enhancing its trade wi of the world.
The mutual clearance agreement will benefit the traders from the Eastern African Community (EAC) from quick clearance of their goods and fewer costs of running their business. EAC is an inter-governmental body composed of six countries: Uganda, Rwanda, Tanzania, Burundi and Kenya. A joint action plan between the two countries- EAC and India has been signed to facilitate faster clearance times for authorized traders.
The mutual recognition agreement (MRA) will benefit companies under the authorized economic operator’s programme run by the EAC partner states under the coordination of the EAC secretariat since 2008. Because of MRA, the goods imported from India can now bypass tight security checks at the port.
The MRA between EAC and India not only saves the trading costs and time but is also set to foster growth in sustainable trade between the two trade partners while eliminating non-tariff barriers and enhancing cooperation between the customs administration of EAC and India.
The timely MRA will enable the facilitation of EAC traders under the AEO programme while in India and vice versa, enabling fast clearance of their goods; as a result, savings in costs and time.
Currently, 135 AEOs under the EAC regional AEO programme are eligible for facilitation in any part of EAC where they are conducting business.
AEO is a preferential customs clearing programme that allows authorized customs clients to have quick clearance on their consignments. The goods are not subject to physical examination, except for random or risk-based interventions, thus saving time and costs.
The AEO concept is obtained from the World Customs Organization as an instrument that the WCO Council adopted in 2005 to enhance the facilitation and security of global trade. It works on the principle of trust, compliance and partnership whereby economic operators that exhibit compliance with supply chain security standards of the customs are recognized as low-risk clients with whom the customs department enters into the partnership agreement.