India Hosts Global AEO Conference in New Delhi
The Central Board of Indirect Taxes and Customs (CBIC) recently hosted a significant two-day conference on the Authorised Economic Operator (AEO) program in New Delhi. This event took place on November 28 and 29, 2024, in collaboration with the World Bank. The conference brought together representatives from 18 trade partner countries, private sector stakeholders, and international organizations. The aim was to enhance global trade partnerships and discuss the future of the AEO program.
Key Participants and Highlights
The conference featured prominent figures in the field of customs and trade. Shri Sanjay Kumar Agarwal, Chairman of CBIC, led the event alongside other members of the board. Shri Sanjay Malhotra, Secretary of the Department of Revenue, Ministry of Finance, delivered the valedictory address on the second day. His speech emphasized the government’s two-pillar approach to tax administration, focusing on trust and technology. He also highlighted the importance of expanding the Mutual Recognition Agreement (MRA) program to include more regional and bilateral partners.
The event was attended by representatives from various countries, including Russia, Australia, Thailand, and Brazil. These participants engaged in discussions about the benefits of the AEO program and how it can help streamline trade processes. Shri Surjit Bhujbal, a member of CBIC, noted the progress made by India’s AEO program and its positive impact on the private sector. The conference also included a summary of key takeaways by Shri Satya Prasad Sahu from the World Bank.
The Role of AEO in Global Trade
The AEO program is a crucial initiative under the World Customs Organization (WCO) SAFE Framework of Standards. It aims to secure and facilitate global trade by enhancing cooperation between customs authorities and stakeholders in the international supply chain. The program is voluntary and allows Indian Customs to improve cargo security through collaboration with importers, exporters, logistics providers, and other key players.
India’s AEO program began in 2011 and was strengthened in 2016. It has seen significant growth, with 5,947 AEO entities certified as of October 31, 2024. The program operates on a three-tier system, which includes an additional tier for logistical operators. This structure allows for a more streamlined approach to trade facilitation and security.
Future Directions and International Cooperation
During the conference, Shri Malhotra assured participants of India’s commitment to developing robust AEO programs in countries with less capability. He emphasized that the AEO framework helps reorganize and re-engineer tax systems based on trust. The discussions also focused on the importance of MRAs, which allow for mutual recognition of AEO status between countries. India has already signed MRAs with several nations, including South Korea, the USA, and Australia.
The conference served as a platform for stakeholders to redefine the future of global trade partnerships. Mr. Hoon Sahib Soh from the World Bank highlighted India’s dedication to building resilient trade relationships. He called on all participants to work together to position India as a leader in the interconnected trade ecosystem. The event concluded with a commitment to continue fostering international cooperation and best practices in trade facilitation.
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