Korea and India Pledge Closer Cooperation in Customs Affairs to Facilitate Bilateral Trade
Key Takeaways
- •The KCS and India's CBIC formalized a cooperation agreement during a meeting in New Delhi aimed at strengthening bilateral customs coordination.
- •Korean officials presented specific cases of customs difficulties encountered by Korean companies operating in or exporting to India.
- •The two countries discussed expanding cooperation through joint training programs for customs personnel from both sides.
- •South Korea and India have maintained a comprehensive economic partnership framework under CEPA since 2010, with agreed upgrades in 2018.
- •Major Korean manufacturers including Samsung, LG, Hyundai, and Kia rely on efficient customs procedures to maintain supply-chain reliability and cost competitiveness in India.
The Korea Customs Service (KCS) announced Wednesday that it has reached an agreement with India's Central Board of Indirect Taxes and Customs (CBIC) to strengthen bilateral cooperation on customs matters and facilitate smoother trade between the two nations.
The agreement was formalized during a meeting held in New Delhi on Tuesday, Indian time, between KCS officials and their Indian counterparts. The Korean delegation asked the Indian government to provide support for streamlined customs clearance procedures for Korean businesses operating in and exporting to India.
During the session, the KCS presented specific cases in which Korean firms based in India have encountered customs-related difficulties. The two sides also discussed avenues for expanded bilateral cooperation, including joint training programs for customs personnel.
Han Min, director general for international affairs at the KCS, and Vivek Chaturvedi, chairman of India's CBIC, led their respective delegations in the talks.
"With India being a major partner in the Asia-Pacific region, the two countries intend to bolster cooperation down the road to address hurdles facing Korean firms seeking to export to India," Han said in a release.
South Korea and India have maintained a comprehensive economic partnership since the implementation of the Korea–India Comprehensive Economic Partnership Agreement (CEPA) in 2010, which has served as the foundational trade framework between the two countries. The two governments agreed in 2018 to upgrade CEPA terms, reflecting efforts to expand market access and address imbalances that had limited the agreement's impact on bilateral trade growth.
India is one of South Korea's key trading partners in the Asia-Pacific region, and major Korean manufacturers including Samsung, LG, Hyundai, and Kia have established significant production and sales operations in the Indian market. For these companies, efficient customs clearance is a practical determinant of supply-chain reliability and cost competitiveness. Streamlined customs procedures are seen as an important factor in reducing costs and delays for cross-border commerce, and the new cooperation framework is expected to focus on resolving operational bottlenecks identified by Korean firms on the ground.
