India Post, US Postal Service sign agreement to facilitate ease of exports

In a bid to ease exports, the Department of Posts and the United States Postal Service on Tuesday, October 27, signed an agreement for the electronic exchange of customs data related to postal shipments between India and the US. The agreement was signed by the Department of Posts Deputy Director-General Prannoy Sharma (international relations and global business) and US Postal Service's Global Business Managing Director Robert H Raines Jr. an official statement said.

Agreement to ease exports

The main aim behind the agreement is to facilitate 'ease of exports' for small and large exporters through postal channels from different parts of the country, the statement said while adding that it will contribute towards making India an export hub for the world. According to the agreement, the Exchange of Electronic Advance Data (EAD) will be the key driver towards promoting mutual trade with emphasis on exports from different parts of the country to the US through the postal channel.

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"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. This will also improve the performance of postal services in terms of reliability, visibility and security," the statement said.

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US top export destination for India

The United States is the top export destination for India, With around 17 percent share, which is also reflected in the exchange of goods through postal channels, the statement said. Adding further it said that in 2019 around 20 percent of outbound EMS (Express Mail Service) and 30 percent of letters and small packets transmitted by India Post were destined to the USA. Whereas 60 percent of the parcels received by India Post originated from the USA. The agreement further stated that the US is a major destination of MSME products, jewellery and gems, pharmaceuticals and other local products from India.

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(With PTI inputs)