To streamline customs procedures as well as promote bilateral trade and economic cooperation, Russia and India have signed a mutual recognition agreement (MRA) of authorised economic operators (AEOs).

The first deputy head of the Russian Federal Customs Service, Ruslan Davydov, and the chairman of the Central Board of Indirect Taxes and Customs (CBIC), Sanjay Kumar Agarwal, have signed a mutual recognition agreement of authorized economic operators (AEOs) to enhance security and customs trade between the two countries.

By recognising each other's AEOs, Russia and India will simplify customs procedures and expedite the movement of goods, thus creating a more efficient and smooth trading environment.

"AEO agreement is a major trade facilitation boost for Indian importers and exporters", the CBIC posted on its official account on X.

This partnership aims to increase trade volumes and create greater opportunities for growth and investment.

By employing a segmentation strategy, customs authorities of both countries can allocate resources effectively, prioritising oversight on businesses that are deemed less compliant or higher risk.

Under the agreement, the most diligent companies in foreign economic activities will be given AEO status, which will allow them to enjoy benefits such as expedited customs clearance that will in turn enhance their competitiveness on the global market.

(With Agency Inputs)