India, Saudi Arabia discuss agreement on tax enforcement and trade facilitation
NEW DELHI : India, Saudi Arabia Explore Ways To Help Each Other Enforce Customs Law Under Mutual Assistance Agreement, Says Weekly Update From Central Indirect Tax And Customs Council (CBIC).
The idea is to extend administrative assistance in law enforcement as well as to facilitate cross-border trade through the exchange of data between the customs authorities of the two countries. The two sides are considering an agreement on customs cooperation to expand the scope of bilateral customs relations as well as deepen them, the CBIC said in the update posted on its website.
CBIC President Ajit Kumar and Saudi Arabian Ambassador Saud Al Sati had discussions last Thursday, CBIC said.
India has explored agreements with other countries on information exchange as well as mutual administrative assistance as part of efforts to improve tax compliance enforcement. Data exchange will also help to process shipments quickly and release them with minimum hassle for traders.
Last month, CBIC and US Customs and Border Protection agreed to extend their facilities to exporters from their respective territories who met certain compliance criteria. This was part of a mutual recognition agreement by the two agencies of the Authorized Economic Operator (AEO) program, a regime that grants certain privileges to actors in international trade who are accredited by the authorities on the basis of their background. Their privileges include greater confidence in their statements by authorities, as well as faster tax refunds and expedited dispute resolution.
CBIC focuses on trade facilitation to improve the ease of doing business, as cross-border trade is a key part of India’s economic recovery strategy.
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