Customs representatives from both sides met last week to introduce clearer plans and audit mechanisms to meet international trade standards, and relax seafood certification standards, as well as genetically modified Agri agricultural products and processed foods, ET also learned.
These two projects face the biggest rejection from both sides, which is a matter of debate between the two countries.
The two countries can also relax tariffs and permits in the US Foreign Trade Zone (FTZ) system, which is equivalent to India’s special economic zone.
Officials said that despite some specific views discussed, their detailed observations may be discussed when Commerce Minister Piyush Goyal will travel to us later this month.
A senior official told ET. “Last week, the U.S. team was here to learn about the customary process before the trade agreement, and both sides discussed simplifying the process of two projects. One was fresh fruit and processed food, followed by seafood,” officials added. India is pushing for a declaration format that says these products are not genetically modified foods.
The U.S. hopes to provide a similar certification for Indian seafood, saying that under the permitted restrictions of U.S. food safety regulations, Indian chemicals may reduce the rejection of consignment goods.
“To a large extent, the framework of mutually recognized agreements between the two countries will remain unchanged. However, both sides will adjust customs audits and inspections.”
Last month, ET reported that both sides were also imposing separate customs duties on the upcoming alcohol consumption.
The United States is promoting a separate category for alcoholic beverages with alcohol content between 14-18%, importing many of these beverages under that category. Currently, India allows beverages with alcohol content of no more than 8% in the low-alcoholic beverage category. The U.S. peers either want to increase it to 18%, or have separate categories.
