The Central Board of Indirect Taxes and Customs (CBIC) organized a two-day global India Authorised Economic Operator (AEO) programme in collaboration with the World Bank on 28th and 29th November 2024, in New Delhi. The event featured participation from government officials, trade partners, international organizations, and private sector representatives.
Key Speakers and Participants
- Shri Sanjay Kumar Agarwal, Chairman, CBIC, inaugurated the AEO Dialogue, alongside members of CBIC.
- Shri Sanjay Malhotra, Secretary, Department of Revenue, Ministry of Finance, delivered the valedictory address.
- Shri Surjit Bhujbal, Member (Customs), CBIC, highlighted India’s progress in the AEO programme.
- Shri Satya Prasad Sahu, World Bank, summarized the key takeaways from the conference.
- International representatives from 18 countries, including Russia, Australia, Thailand, Brazil, and Egypt, attended the programme.
Shri Sanjay Malhotra’s Address on Trust and Technology in Tax Administration
In his speech, Shri Sanjay Malhotra emphasized the two-pillar approach of the Government on tax administration — trust and technology. He underscored the importance of expanding the Mutual Recognition Agreement (MRA) programme to include more regional and bilateral partners. Shri Malhotra also assured India’s support in developing a robust AEO programme in countries with less capacity, highlighting the role of AEO in re-engineering tax systems based on trust-based strategies.
Progress of India’s AEO Programme
- Shri Surjit Bhujbal acknowledged the significant progress made in India’s AEO programme, particularly in benefiting the private sector.
- The AEO programme, launched in 2011 and strengthened in 2016, aims to enhance cargo security through cooperation with key stakeholders in the international supply chain.
- As of 31st October 2024, India has 5,947 AEO entities, with a three-tier system including an additional tier for logistical operators.
India’s Role in Global Trade and Partnerships
- Shri Agarwal emphasized India’s improvement in the World Bank logistics performance index, with the AEO programme playing a central role in this progress. He described AEO as part of India’s global effort to secure trade, in line with the philosophy of Vasudhaiva Kutumbakam (the world is one family).
- Mr. Hoon Sahib Soh, Head of South Asia Macroeconomics, Trade & Investment at the World Bank, praised the AEO programme as a testament to India’s dedication to building resilient and trusted trade partnerships.
The Role of Mutual Recognition Agreements (MRAs)
- India has signed MRAs with several countries, including South Korea, the USA, the UAE, and Australia. These agreements recognize the AEO status of each partner’s programme, facilitating trade by extending mutual trade benefits.
- India is in the process of finalizing Joint Action Plans (JAP) for MRAs with Uganda, the East African Community, Japan, Singapore, and others. A Joint Action Plan with Brazil was signed during the conference to formalize an MRA.
Panel Discussions and Key Deliberations
The conference also featured panel discussions on several critical topics:
- The journey of India’s AEO programme.
- The benefits of AEO for MSMEs.
- Risk management strategies.
- Gender dimensions of trade facilitation.
- Supply chain resilience.
- Best practices and engagements with international participants.
AEO Programme Overview
The AEO programme is a voluntary compliance initiative under the World Customs Organization’s (WCO) SAFE Framework of Standards, designed to secure and facilitate global trade. It enhances cargo security through close cooperation with stakeholders in the supply chain, including importers, exporters, logistics providers, and customs brokers.
Multiple-Choice Questions (MCQs):
1. What was the primary focus of the Global India AEO programme held on 28th-29th November 2024?
A. Financial sector growth
B. Trade facilitation and AEO partnerships
C. Technological advancements in customs
D. Domestic tax reforms
Answer: B. Trade facilitation and AEO partnerships
2. Who delivered the valedictory address at the conference?
A. Shri Surjit Bhujbal
B. Shri Sanjay Kumar Agarwal
C. Shri Sanjay Malhotra
D. Shri Satya Prasad Sahu
Answer: C. Shri Sanjay Malhotra
3. What was emphasized as a key component of the Government’s tax administration approach?
A. Technology
B. Trust and technology
C. Automation
D. E-commerce regulations
Answer: B. Trust and technology
4. As of 31st October 2024, how many AEO entities were there in India?
A. 1,000
B. 3,000
C. 5,947
D. 7,500
Answer: C. 5,947
5. Which country’s AEO programme was highlighted in a Joint Action Plan with India during the conference?
A. Brazil
B. Russia
C. USA
D. Australia
Answer: A. Brazil