India a step closer to granting recognition to Taiwan as a trade partner

Chennai:
India is a step closer to granting recognition to Taiwan as a trading partner by having a bilateral agreement on Carnet-like mechanism to facilitate temporary movement of goods between India and Taiwan by beginning of first quarter.

Director (International Customs) Central Board of Excise and Customs, department of revenue, M Satish Kumar Reddy told Express that, “Discussions are on and since Taiwan is not recognized and is not a member of the World Customs Organisation we are going to have a separate agreement with Taiwan on lines with the international customs document ATA carnet that will facilitate temporarily import and export of goods without payment of normally applicable duties and taxes.”

“Soon the export and import of goods under Carnet  between India and Taiwan ix expected to become a reality by March 2012,” said Reddy on the sidelines of Workshop on ‘ATA Carnet’ organized by Federation of Indian Chambers of Commerce and Industry here on Friday.

The deal is not pursued between India and Taiwan. It is done under India-Taipei Association here. In effect, it will be between the two governments, he said.

“Since there are some diplomatic issues, we have to use the diplomatic channels, because Taiwan is not considered a country by India,” Reddy said.

This would boost trade in electronics and semi conductors sectors once the deal becomes operational, he said.

ATA Carnet is an international customs document that simplifies customs procedures for the temporary importation of various types of goods. Interestingly, its awareness among Indian businessmen is low.

According to figures provided by S Vijaylakshmi, senior assistant director of FICCI, which is the national issuing and guaranteeing association, the government has issued 76 carnets in 2004 and this year 432 carnets have been issued. “While the rise is seven times more, the figures pale when compared to European nations who issue thousands of carnets every year,” she added.