India-Australia Mutual Recognition Arrangement Boosts Trade Facilitation

August 17, 2023

The Cabinet, led by Prime Minister Narendra Modi, has given the green light for the signing and ratification of the Mutual Recognition Arrangement (MRA) between India’s Central Board of Indirect Taxes and Customs (CBIC) and Australia’s Department of Home Affairs, incorporating the Australian Border Force. The MRA aims to offer reciprocal benefits to accredited exporters from both countries, streamlining customs clearance procedures.

This step aligns with the World Customs Organisation’s SAFE Framework of Standards, enhancing global trade security and efficiency. The agreement will bolster the trade relationship between India and Australia by enabling mutual recognition of the Australian Trusted Trader Program and India’s Authorized Economic Operator Program, benefiting exporters from both nations.

What is the purpose of the Mutual Recognition Arrangement (MRA) between India and Australia?

The MRA aims to provide accredited exporters from both countries with reciprocal benefits, simplifying customs clearance procedures and enhancing trade efficiency.

How does the MRA align with the SAFE Framework of Standards?

The MRA is consistent with the World Customs Organisation’s SAFE Framework of Standards, emphasizing security and facilitation in global trade. It contributes to securing supply chains while promoting trade facilitation.

What is the significance of mutual recognition of Authorized Economic Operators?

Mutual recognition of Authorized Economic Operators is a crucial element in trade facilitation. It promotes secure and efficient global trade while ensuring higher facilitation levels for trusted traders.

How will the MRA impact India-Australia trade relations?

The MRA will foster a stronger trade relationship between India and Australia by enhancing trade facilitation and benefiting exporters from both countries through streamlined customs procedures.

When does the Mutual Recognition Arrangement come into effect?

The Mutual Recognition of the Australian Trusted Trader Program in Australia and the Authorized Economic Operator Program in India will come into force from the date of signing by authorized representatives of both countries.

How was the text of the proposed MRA finalized?

The text of the proposed Mutual Recognition Arrangement has been finalized with the agreement of the Customs Administrations of both India and Australia, ensuring consensus on its terms and conditions.

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