Postal services of India, US ink agreement for Electronic Exchange of Customs Data

India’s Department of Posts and the United States Postal Service have entered into an agreement for Electronic Exchange of Customs data related to postal shipments exchanged between the two countries.

The agreement will make it possible to transmit and receive electronic data of international postal items prior to their physical arrival at the destination and would enable customs clearance of postal items in advance in line with the evolving global postal framework.

It aims to facilitate ‘ease of exports’ for small and large exporters through postal channels. This will also improve the performance of postal services in terms of reliability, visibility and security.

USA is the top export destination for India which is also reflected in exchange of goods through postal channel. In 2019, around 20 per cent of outbound EMS and 30 per cent of letters and small packets transmitted by India Post were destined to USA whereas 60 per cent of the parcels received by India Post were originated from USA.

Exchange of Electronic Advance Data (EAD) as per the agreement will be a key driver towards promoting mutual trade with emphasis on the exports from different parts of India to USA through postal channel considering that USA is a major destination of MSME products, gems and jewellery, pharmaceuticals and other products from India.

This will fulfil a major demand of export industry to expedite customs clearances of export items.