NEW DELHI : The Government is moving fast to operationalize two deals signed with the US and the UAE for making trade easier and also to boost the number of exporters and allied service providers who can benefit from them, according to two officials.

The move involves giving full effect to the mutual recognition of a key trade facilitation scheme for authorized economic operators (AEOs) in India and their equivalent in the two partner-countries and to expand the coverage of beneficiaries. The mutual recognition agreements (MRAs) signed with the US and the UAE are being run on a pilot basis.

An AEO tag is given to trusted merchants and other entities involved in international trade. So far, India has given the status of AEO to around 5,680 importers, exporters, logistics providers, custom brokers and warehouse operators who are compliant with supply chain standards and security norms.

The US has a similar programme, called Customs-Trade Partnership Against Terrorism (C-TPAT) which is managed by the US Customs and Border Protection (CBP) department.

Once the deals are operationalized, customers of Indian businesses in those two nations will also get a host of trade privileges including priority customs processing, lower inspection rate and acceptance of self-declaration of ‘origin of goods’.

Accredited merchants in those countries will get similar privileges at Indian ports.

Merchants with AEO tag in certain categories also get privileges like an option for deferred customs duty payments under a ‘clear consignment now, pay later’ facility.

Over 700 Indian AEO businesses export to the US and would be beneficiaries of the mutual recognition of the schemes, said the first of the two officials quoted above, who spoke on condition of anonymity.

“Under the AEO programme which started in India in 2011 and revamped in 2016, we have made a lot of progress last year. In 2022-23, we have added more than 1,000 new AEOs. This year also, we want to maintain the same tempo and we want to surpass last year’s track record,” said the second official cited above, Naveen Kumar Jain, principal commissioner, directorate of international customs (DIC) in the finance ministry.

The DIC is the nodal agency for the AEO programme.

To get accreditation as an AEO, all documentation can be filed online. At present, the DIC is reaching out to the trading community to mobilize greater participation in the AEO programme and to complete the formalities of reciprocal arrangements under the mutual recognition agreements.

India signed the MRA with the US in late 2021 and with the UAE in June this year.

India’s mutual recognition deal with South Korea is already operational. Mint reported on 18 July that India is exploring such a deal with Russia.

The move to implement these deals guaranteeing superfast clearances at ports comes in the context of a slowdown in merchandise exports amid a global demand slowdown.

India’s merchandise exports contracted by 22% in June compared to the same month a year ago, to $32.97 billion, as per official figures.