Goods imported from India can now bypass tight security checks at the port after the Asian country and the East African Community (EAC) entered into a Mutual Recognition Agreement (MRA).
The MRA will benefit companies under the Authorised Economic Operators (AEO) Programme run by the EAC Partner States and coordinated by the EAC Secretariat since 2008.
Goods imported from India can now bypass tight security checks at the port after the Asian country and the East African Community (EAC) entered into a Mutual Recognition Agreement (MRA).
The MRA will benefit companies under the Authorised Economic Operators (AEO) Programme run by the EAC Partner States and coordinated by the EAC Secretariat since 2008.
AEO is a preferential customs clearing programme that allows trusted customs clients to enjoy quick clearance on their consignments as the goods are not subjected to physical examination, except for random or risk-based interventions, hence saving on time and cost.
Speaking at the signing ceremony, the EAC Director-General for Customs and Trade Kenneth Bagamuhunda said the MRA, once finalised and implemented, would have a big impact on the flow and growth of trade between East Africa and India.
“We are aware that the path to an MRA is usually lengthy and tedious. The signing of this joint action Plan signals an important milestone in this journey that we have started, and we are delighted to undertake it,’’ said Mr Bagamuhunda.
The AEO concept is derived from the World Customs Organisation (WCO) SAFE Framework of Standards, an instrument that was adopted by the WCO Council in 2005 to enhance facilitation and security of global trade.
It works on the principle of compliance, trust and partnership whereby, economic operators that demonstrate compliance with customs supply chain security standards, are recognised as low-risk clients with whom customs enter into a partnership arrangement.
The Chairman of the India Central Board of Indirect Taxes and Customs Ajit Kumar, emphasised the crucial role of having in place a robust, safe and largely digitised system, on one hand, and a pool of trusted and validated trading entities on the other.
The selection of India as an MRA partner follows the fairly steady trade between the EAC and India between 2014 and 2018—before Covid-19 disruptions— which cumulatively amounted to over $30 billion.
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