India Post and United States Postal Services signed agreement for Electronic Exchange of Data

Context

Department of Posts, Government of India (India Post) and United States Postal Service (USPS) have entered into an agreement for the electronic exchange of customs data related to postal shipments exchanged between both the countries.

Highlights

• The primary purpose to be fulfilled by this agreement is to promote 'ease of exports' for small and large exporters through postal channels from various parts of the country and to help make India an export hub for the world.
• 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 will enable customs clearance of postal items in advance in line with the emerging global postal framework.
• This will also enhance the performance of postal services in terms of reliability, visibility and security.
• USA is the top export destination for India (~17%) which is also reflected in exchange of goods through postal channel. USA is followed by UAE and China.
• Exchange of Electronic Advance Data (EAD) as per the Agreement will be a key driver for the promotion of mutual trade with a focus on exports from different parts of India to the USA via the postal channel, provided that the USA is a major destination for MSME products, Gems & Jewellery, Pharmaceuticals and other local products from India. This will meet the high demand of the export industry to expedite customs clearance of export items.