Taiwan and India Sign an Arrangement for Mutual Recognition of AEO to Facilitate Bilateral Trade
The Mutual Recognition Arrangement (MRA) of Authorized Economic Operator (AEO) between Taiwan and India was signed in Taipei on December 18, 2018. Through the Arrangement, the Customs Authorities of Taiwan and India are able to mutually recognize the AEOs validated by each other. Exporters and importers awarded AEO status in Taiwan and India can enjoy the same level of facilitation for their goods at both borders.
The Arrangement was signed by Representative Tien, Chung-Kwang of Taipei Economic and Cultural Center in India and Director General Sirdharan Madhusudhanan of India Taipei Association, and witnessed by Deputy Minister Wu, Tzu-Hsin of Ministry of Finance. Other attendees at the signing ceremony include Deputy Director General Chen, Shan-Ju of Taiwan Customs Administration and representatives from certain trade-related agencies.
Taiwan Customs Administration indicates that the inking of this Arrangement symbolizes a significant milestone for customs cooperation between Taiwan and India. Currently, India is the 16th largest trading partner of Taiwan, and the trade volume between Taiwan and India in 2017 amounts to US$6.4 billion. As the MRA will effectively facilitate bilateral trade, which in turn can bring substantial economic benefits to both sides, it is expected the MRA will reinforce the close cooperaiton between both customs administrations, as well as the strong economic ties between Taiwan and India.
This Arrangement is the third MRA India has signed since its implementation of Indian AEO Program in July 2012. On the other hand, Taiwan Customs has implemented its AEO program since December 2009 and there have been 722 AEOs granted as of today, including 366 General AEOs and 356 Security and Safety AEOs, together accounting for 46% of Taiwan’s total trade. In addition, through continuous efforts, Taiwan Customs has already signed AEO MRAs with the United States, Singapore, Israel, Korea, Australia and Japan. It is particularly noteworthy that, the AEO MRA with India, following that with Australia, is the second of its kind Taiwan has signed with countries included in its New Southbound Policy. This clearly demonstrates steady progress in the implementation of that Policy has been made in the filed of Customs affairs.