India and Mercosur will accept electronic Certificates of Origin, potentially reducing documentation costs and processing time for electronics exporters and importers claiming preferential tariffs.
India and Mercosur have signed an agreement to accept electronic Certificates of Origin (CoOs), giving electronics manufacturers, component suppliers, exporters, and importers a potentially faster way to process preferential trade documentation with the five-member South American bloc.
The move is aimed at facilitating paperless trade and modernising customs procedures. Importers use Certificates of Origin to prove that products originate from an FTA/PTA partner and qualify for applicable duty concessions.
Under the protocol, electronic CoOs will have the same legal validity and identical value as paper certificates. They must be issued and electronically signed in accordance with the respective domestic legislation of India and Mercosur parties.
The Commerce Ministry said, “India and Mercosur signed the first additional protocol to the India-Mercosur Preferential Trade Agreement (PTA) to facilitate acceptance of electronic Certificates of Origin, marking an important step towards facilitating paperless trade and modernising customs procedures.”
The government expects the move to reduce transaction costs and processing time for issuing and verifying CoOs while improving the efficiency of preferential trade.
Mercosur comprises Brazil, Argentina, Bolivia, Uruguay, and Paraguay. Its PTA with India, effective since 1 June 2009, covers preferential tariff concessions on 450 tariff lines by India and 452 by Mercosur.
The protocol will take effect after both sides complete internal procedures and notify each other. It was signed by Commerce Secretary Rajesh Agarwal, Uruguay Ambassador Alberto Guani, and Paraguay Ambassador Fleming Raul Duarte Ramos.
