| Date: |
18-02-2016 |
| Subject: |
Ratification of WTO's TFA a significant step, says Commerce Minister Nirmala Sitharaman |
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NEW DELHI: Commerce Minister Nirmala Sitharaman today described the Cabinet's decision to ratify WTO's trade facilitation agreement (TFA) as a "very significant step" and said the government has already taken several steps to fulfil its obligation on the pact.
"It is a very significant step and I am glad that the government has taken this step today," she told reporters here.
The minister said in the last two Union Budgets, the government has already made several commitments towards improving systems within India for trade facilitation.
The major provisions under the agreement that India is already implementing includes publication of relevant trade-related information such as trade procedures and forms; system of administrative appeal/review; facility of electronic payment; allowing release of goods on bank guarantee in cases of delay in assessment; and freedom of transit.
However, she said, there are important areas where India will require "legal changes" and that includes inward and outward processing to facilitate re-import and re-export of goods for repair, reconditioning; and release of goods before payment of duty will have to be allowed on a guarantee/surety in all cases of imports where the duty is not determined prior to or upon arrival, or as rapidly as possible after arrival.
"We have asked for time (to implement certain provisions) which require further investment and also technology and other things or which require legislative amendments...we have asked for five years," Sitharaman said adding the Customs Act largely needs changes to implement the pact.
Other important provisions that India would need to adopt are more enquiry points, special facilitation measures for perishable goods, and single window.
Further talking about the TFA, the Commerce and Industry Minister said the pact largely deals with improving the way trade is carried out between countries and greater sharing of information.
"Going by the nature of the agreement, particularly using the special and differential treatment section (under the WTO), India has chosen to have some of the activities that it has to do in order to fulfil the obligations...we have very clearly asked for more time," she said.
"What this will mean moving forward will be that we will now deposit with the WTO our ratification formally," she added.
She said the committee which will be formed will get into the details of the obligations which India has to fulfil to implement the pact.
The Cabinet today approved WTO's Trade Facilitation Agreement and decided to set up a national committee for overseeing the implementation of the TFA which aims to smoothen the flow of commerce globally.
Source : economictimes.indiatimes.com
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