Trade Talks

Overview The India-ASEAN Trade Agreement is a significant trade pact between India and the Association of Southeast Asian Nations (ASEAN). It aims to promote economic cooperation and reduce trade barriers between the two regions. Recently, there have been some noteworthy developments regarding the review of this agreement. India and ASEAN are expected to formally launch the review exercise for the free trade agreement (FTA) in November. The review process will focus on eliminating barriers and addressing concerns about the misuse of the trade pact. The negotiations are expected to be concluded by 2025. This review is crucial as it aims to enhance and diversify trade while addressing the current irregularity in bilateral trade. India’s trade deficit with ASEAN has been a matter of concern, and this review aims to address this issue. The widening trade deficit between India and ASEAN has raised questions about the effectiveness of the existing trade agreement. The review will also

Introduction The United Kingdom's recent introduction of the Developing Countries Trading System (DCTS) marks a significant shift in its trade policies. The move aims to revamp the country's trading relationship with developing nations, including India. However, because of this change, Indian goods worth $960 million are set to lose their concessional duty access to the UK market. This article delves into the implications of the DCTS on Indian exporters, analyzing the challenges they face and the potential strategies they can adopt to mitigate the impact. Understanding the Developing Countries Trading System (DCTS) The DCTS is a novel trade preference scheme introduced by the UK after its departure from the European Union. As part of its independent trade policy, the UK seeks to reconfigure its relationships with developing nations by implementing this new system. The DCTS aims to provide preferential market access to a carefully selected group of countries with the greates

If you are directly or indirectly connected with the global supply chain, then you must have heard the buzzword ‘AEO.’ It is an accreditation awarded by the Indian Customs not just to the importer-exporters but also to the Logistics Operators, Customs House Agents (CHAs), Freight Forwarders, Terminal Operators, etc. Assuming that you are well informed about the AEO status and its importance, in this article we will see how AEO status is significant in actual practice, and what the positives and negatives are if you are thinking to apply for the AEO status. In past years, I had an opportunity to hand-hold to the importer-exporters to get the AEO accreditation. I have summarized the facts in a Q&A format. But before that let us investigate India’s current AEO accreditation scenario. Who can apply for AEO status? Any business entity that is part of the international supply chain; involved in the cross-border movement of goods and required to fulfill obligations under the Customs law i

On April 1st, 2023, the DGFT (Directorate General of Foreign Trade) announced a new Foreign Trade Policy, which came into force on the same date. The earlier Foreign Trade Policy 2015-20 was supposed to be valid up to March 31st, 2020. However, it extended up to March 31st, 2023 because of various scenarios like, the COVID-19 pandemic, etc. If we compare India’s merchandise export and service export in FY 2016 (at the beginning of Foreign Trade Policy 2025-20), it was USD 435 billion. It is expected that the export may grow up to USD 760 billion by the end of FY 2023, which is almost 75% growth. Here, being an exporter, you can judge that the export business has good potential in near future. Export has a direct relation to key economic factors like demand and supply. This means Indian goods and services have ample demand in the world market and the only question remains seizing the opportunity at right time. In short, companies that are in the export business have an opportunity to fl

In last month’s Cross-border Trade Val-bytes, we understood Cross-border Trade Valuation for exported goods and for imported goods in a nutshell. I hope my previous article helps you to understand the significance of valuation in international trade. In this month’s article, we will focus on the valuation of exported goods in a more comprehensive manner. Determination of Export Value: The value of the export goods shall be based on the transaction value of goods of like kind and quality exported at or about the same time to other buyers in the same destination country of importation or in another destination country of importation adjusted. While determining the value of export goods several factors are taken into consideration like commercial levels, quality levels, differences in composition, quality, and design between the goods to be assessed and the goods with which they are being compared, differences in domestic freight, and insurance charges depending on the place of exportatio

In last month’s Cross-border Trade Val-bytes, we saw an introduction to Cross-border Trade Valuation. I hope my previous introductory article helps you to understand the significance of valuation in international trade. In this month’s article, we will try to boil down the valuation in a more comprehensive manner. Valuation is broadly defined into two parts in the form of rules namely: Customs Valuation (Determination of Value of Exported Goods) Rules, 2007 The value of the export goods shall be based on the transaction value of goods of like kind and quality exported at or about the same time to other buyers in the same destination country of importation or in another destination country of importation adjusted. While determining the value of export goods several factors are taken into consideration like commercial levels, quality levels, differences in composition, quality, and design between the goods to be assessed and the goods with which they are being compared, differences in do