India to Have Trade Tie up with Taiwan.

Chennai, Dec 17 (PTI) India has begun steps to foster a trade agreement with Taiwan on the model of international customs document ATA carnet.

A top Indian official said the country is holding talks with the Taiwanese to establish a business set up on lines of ATA carnet that will facilitate temporarily import and export of goods without payment of normally applicable duties and taxes by March 2012.

"We are going to have a separate agreement with them (Taiwan). So that under the same conditions (with that of ATA carnet), we can send and receive goods," M Satish Kumar Reddy, Director (International Customs), Central Board of Excise and Customs said.

India is expecting the new set up to be operational by first quarter (of next year) possibly by March 2012, he said.

However, he said the talks in this regard were not done between the two governments but between two associations.

"It is not done as India and Taiwan. It is done in the name of an association. India-Taipei Association. Taipei Economic Association here. It is done between these two associations. In effect, it will be between the two governments," he said.

Since, Taiwan is strong in electronics, semi-conductors sectors, those sectors will be benefited, once it becomes operational, he said.

ATA Carnet is an international uniform customs document issued in 71 countries and it permits duty free temporary admission of goods into these countries without payment of duty and other customs formalities.

Source : news.in.msn.com