ABF Commissioner Michael Outram APM and India’s Central Board of Indirect Taxes and Customs Chairman, Sanjay Jumar Agarwal, signing the MRA on 18 April. Photo: Australian Border Force.
Australia has signed its 10th Mutual Recognition Arrangement (MRA), with India, recognising one of the fastest growing economies in the world as an Authorised Economic Operator (AEO).
MRAs allow customs administrations to streamline border processing of goods. When such an arrangement is made between customs administrations with equivalent AEO programs – such as India – they become an AEO MRA.
These arrangements are a component under the Australian Trusted Trader (ATT) program, which seeks to reduce red tape for its members at the border, improve certainty in export markets, and expedite the flow of their cargo in and out of Australia so there’s faster access to market.
While membership to the ATT program is free to Australian businesses, they must demonstrate a secure supply chain and high levels of trade compliance.
The AEO arrangement with India is expected to bring an estimated $588 million growth of trade in the Australian market over the coming decade. It’s also expected to strengthen supply chain security and provide diversified markets for Australian traders.
ABF Commissioner Michael Outram PSM signed the AEO MRA with India’s Central Board of Indirect Taxes and Customs Chairman, Sanjay Kumar Agarwal.
The commissioner said it was integral for Australia to continue furthering its relationships with fellow customs administrations within the Asia Pacific.
“I am proud to sign the Australia-India MRA, which recognises and further strengthens customs-to-customs connections with one of our key regional partners and Australia’s sixth largest trading partner,” commissioner Outram said.
“It is through collaboration and engagement that we can continue to thrive as a region and build our connections throughout the Asia Pacific and indeed the globe.”
Since 2016 the Australian Border Force (ABF) has signed nine other AEO MRAs, which include five of Australia’s top ten two-way trading partners. According to the Department of Foreign Affairs & Trade, they have supported faster access to international markets with a combined total of $429 billion in two-way trade.
The ABF’s other AEO MRAs are with the customs administrations of Canada, the People’s Republic of China, Hong Kong SAR, Japan, the Republic of Korea, New Zealand, Singapore, Taiwan and Thailand.
