The first paragraph:
Indian Postal Service, commonly known as India Post, recently made a significant agreement with the United States Postal Service. The primary goal of this agreement is to expedite the customs process for both small and large international exports. This will be achieved through electronic data exchange prior to the physical arrival of items, improving efficiency and reliability.
Objective of the Agreement
The key objective that drove this bilateral agreement is the facilitation of ‘ease of exports’. India aims to make it simpler for exporters in varying scales, from small businesses to large corporations, to send their goods abroad using postal channels. The ultimate goal is to improve the overall trade scenario in the country by eliminating unnecessary hurdles.
Features of the Agreement
A prominent feature of the agreement is the use of Electronic Advance Data (EAD). This will be used for facilitating the transmission of international postal items’ data before they arrive at the destination. In turn, this will allow the customs clearance of these items well in advance, aligning Indian procedures with the evolving global postal framework.
Such a setup is expected to bolster mutual trade, with particular emphasis on exports.
A Closer Look at Trade Between India and USA
The USA is India’s top export destination, making up approximately 17% of India’s total exports. This is reflected in the exchange of goods via postal channels between the two nations. In 2019, around 20% of India’s international Express Mail Service (EMS) items and 30% of letters and small packets were destined for the USA. Conversely, about 60% of parcels received by India Post originated from the USA.
Benefits of the Agreement
The agreement is set to meet a crucial demand of the export industry – faster customs clearances of exported items. This is expected to boost India’s reputation as an export hub for the world. Additionally, its implementation is expected to enhance the performance of postal services in terms of reliability, visibility, and security.
About India Post
India Post, officially known as the Department of Posts (DoP), is a government-operated postal system under the Ministry of Communications. With over 155,531 post offices, it has the most extensive postal network globally.
Functions of India Post
India Post is responsible for delivering mail, accepting deposits under Small Savings Schemes, providing life insurance coverage under Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI), and offering retail services such as bill collection, form sales, among other things. It also serves as an agent for the Government of India in fulfilling other services for citizens, including wage disbursement under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and old-age pension payments.
Source: PIB
