India Post and United States Postal Service (USPS) Signs Agreement for Electronic Exchange of Customs Data related to Postal Shipments Exchanged between the Two Countries

The Agreement Aims to Facilitate ‘Ease of Exports’ for Small and Large Exporters through Postal Channels

Department of Posts, Government of India (India Post) and United States Postal Service (USPS) have entered into an agreement for Electronic Exchange of Customs data related to postal shipments exchanged between the two countries on 27 Oct. 2020. 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.

Photo Source: PTI

USA is the top export destination for India (~17%) which is also reflected in exchange of goods through postal channel. In 2019, around 20% of outbound EMS and 30% of Letters & Small Packets transmitted by India Post were destined to USA whereas 60% of the Parcels received by India Post were originated from USA. Exchange of Electronic Advance Data (EAD) as per the Agreement will be a key driver towards promoting mutual trade with emphasis on the exports from different parts of India to USA through postal channel considering that USA is a major destination of MSME products, Gems &Jewelry, Pharmaceuticals and other local products from India. This will fulfill a major demand of export industry to expedite customs clearances of export items.

The primary objective that will be served by this agreement is to facilitate ‘ease of exports’ for small and large exporters through postal channels from different parts of the country and will contribute towards making India an Export Hub for the world.

The agreement was signed by Mr. Prannoy Sharma, Deputy Director General (International Relations & Global Business), Department of Posts, Government of India and Mr. Robert H. Raines Jr., Managing Director, Global Business of United States Postal Service.