Source: The post is based on the article “India, UAE explore virtual trade corridor to fast-track shipments” published in Indian Express on 23rd February 2023
What is the News?
India and the UAE are exploring creating a virtual trade corridor to facilitate quicker clearance of shipments.
Note: In 2022, UAE has signed an agreement with Kuwait to set up a virtual trade corridor.
What is a Virtual Trade Corridor planned between India and UAE?
The Virtual Trade Corridor is aimed at cutting the cost and time for customs clearance and speeding up bilateral trade.
Under the corridor proposal, the customs authorities of the two countries will explore the possibility of accessing pre-arrival information for cargo movement. It will make cross-validation of information significantly faster, besides facilitating pre-clearance of goods.
This will complement the bilateral comprehensive free trade agreement signed between India and the UAE in 2022. It immediately eliminated duties on 90% of India’s exports in value terms and covered sectors like gems and jewelry, textiles, leather, and engineering goods.
Benefits: Pre-arrival online document checks by Customs and allied agencies will reduce delays and benefit exporters on both sides.
– Further, it will provide a seamless flow of cargo on both sides, helping trade to grow without hiccups.