India and UAE explore virtual trade corridor to speed up freight

The move aims to reduce customs clearance costs and time and speed up bilateral trade. It will complement the comprehensive bilateral free trade agreement India and the UAE signed last year, which immediately removed duties on 90% of the value of India’s exports, covering sectors such as gems and jewellery, textiles, leather and engineered products.

The move aims to reduce customs clearance costs and time and speed up bilateral trade. It will complement the comprehensive bilateral free trade agreement India and the UAE signed last year, which immediately removed duties on 90% of the value of India’s exports, covering sectors such as gems and jewellery, textiles, leather and engineered products.

According to the proposal of the virtual trade corridor, the customs authorities of the two countries will explore the possibility of obtaining pre-arrival information on the movement of goods, which, in addition to facilitating the pre-clearance of goods, can significantly speed up the cross-validation of information.

According to the proposal of the virtual trade corridor, the customs authorities of the two countries will explore the possibility of obtaining pre-arrival information on the movement of goods, which, in addition to facilitating the pre-clearance of goods, can significantly speed up the cross-validation of information.

The two countries estimate that non-oil trade will reach $100 billion in the five years following the implementation of the free trade agreement on May 1, 2022. It will explore whether customs clearance can be done online…especially for very important hubs like Dubai and Abu Dhabi that connect India to the rest of the world. If the paperwork and approvals for these shipments can be done in India, then they will reach the UAE soon…so this is something that is being considered by both parties,” Sunjay Sudhir, India’s ambassador to the UAE, told Mint.

The two countries estimate that non-oil trade will reach $100 billion in the five years following the implementation of the free trade agreement on May 1, 2022. It will explore whether customs clearance can be done online…especially for very important hubs like Dubai and Abu Dhabi that connect India to the rest of the world. If the paperwork and approvals for these shipments can be done in India, then they will reach the UAE soon…so this is something that is being considered by both parties,” Sunjay Sudhir, India’s ambassador to the UAE, told Mint.

The UAE signed an agreement with Kuwait last year to create a virtual trade corridor.

The UAE signed an agreement with Kuwait last year to create a virtual trade corridor.

Bilateral non-oil trade between India and the UAE rose 4.8 percent to $35.66 billion during the April-December period of the current financial year.

Bilateral non-oil trade between India and the UAE rose 4.8 percent to $35.66 billion during the April-December period of the current financial year.

During the April-December period, New Delhi’s exports to Abu Dhabi amounted to US$23.3 billion, up 16.4%. During the same period, imports from the UAE amounted to US$40.7 billion, a year-on-year increase of 24.6%.

During the April-December period, New Delhi’s exports to Abu Dhabi amounted to US$23.3 billion, up 16.4%. During the same period, imports from the UAE amounted to US$40.7 billion, a year-on-year increase of 24.6%.

“This area of ​​cooperation is currently being explored by the relevant authorities of both countries to agree on mutually beneficial ways of implementing it,” said a spokesman for the Ministry of Commerce and Industry. During the meeting of the India-UAE High-Level Joint Working Group on Investment last October, the two sides decided to explore the establishment of Efficient, all-in-one single window solutions and virtual trade corridors to reduce trade time and costs.

“This area of ​​cooperation is currently being explored by the relevant authorities of both countries to agree on mutually beneficial ways of implementing it,” said a spokesman for the Ministry of Commerce and Industry. During the meeting of the India-UAE High-Level Joint Working Group on Investment last October, the two sides decided to explore the establishment of Efficient, all-in-one single window solutions and virtual trade corridors to reduce trade time and costs.

Inquiries emailed to the UAE Ministry of Economy remained unanswered by press time.

Inquiries emailed to the UAE Ministry of Economy remained unanswered by press time.

“Online pre-arrival document checks by customs and related agencies will reduce delays and benefit exporters on both sides. In addition, if we can remove the value limit for exports via express mode, currently in ¥500,000, which will help our exporters,” said ICRIER professor Arpita Mukherjee. Last year, the union budget allowed gems and jewelry to go through the courier mode.

“Online pre-arrival document checks by customs and related agencies will reduce delays and benefit exporters on both sides. In addition, if we can remove the value limit for exports via express mode, currently in ¥500,000, which will help our exporters,” said ICRIER professor Arpita Mukherjee. Last year, the union budget allowed gems and jewelry to go through the courier mode.

Relevant agencies such as the Food Safety and Standards Authority of India (FSSAI) can review documents before shipments arrive and raise issues if they are incomplete/incorrect, she added. “Exporters and their customs clearance agencies can then resubmit the corrected documents. This will speed up the process, which is required for perishable goods such as food,” Mukherjee said.

Relevant agencies such as the Food Safety and Standards Authority of India (FSSAI) can review documents before shipments arrive and raise issues if they are incomplete/incorrect, she added. “Exporters and their customs clearance agencies can then resubmit the corrected documents. This will speed up the process, which is required for perishable goods such as food,” Mukherjee said.

Ajay Sahai, director-general and chief executive officer of the Federation of Indian Export Organizations (FEO), said other major markets in India should also consider such measures to boost exports. “This is a very welcome initiative that will provide a seamless flow of goods on both sides, helping trade to grow smoothly. This innovative measure needs to be extended to other countries, especially our main export destinations, so that exports can proceed quickly. Clearance on both sides,” Sahai said.

Ajay Sahai, director-general and chief executive officer of the Federation of Indian Export Organizations (FEO), said other major markets in India should also consider such measures to boost exports. “This is a very welcome initiative that will provide a seamless flow of goods on both sides, helping trade to grow smoothly. This innovative measure needs to be extended to other countries, especially our main export destinations, so that exports can proceed quickly. Clearance on both sides,” Sahai said.