GS Paper II

News Excerpt:

Recently, India and South Korea have launched the India-Korea Electronic Origin Data Exchange System (EODES).

About EODES:

• EODES shortens the transmission lead time and assures Preferential Certificate of Origin (PCO) authenticity, thus reducing the goods’ time-to-market through faster Customs clearance.
• It is aimed at facilitating the smooth implementation of the India-Korea Comprehensive Economic Partnership Agreement (CEPA) by way of electronic exchange of origin information between the two customs administrations in respect of the goods traded under the CEPA. 
• The data fields in a Certificate of Origin (CoO) shall be electronically shared by the exporting customs administration with the importing customs, as soon as the certificate is issued. This would facilitate faster clearance of imported goods.

India-Korea Comprehensive Economic Partnership Agreement (CEPA): 

The India-Korea CEPA played a major role in enhancing trade between the two countries. The annual bilateral trade reached $21.5 billion in 2018. India-Korea CEPA became operational in January 2010.

• Features of India-Korea CEPA:

• Both nations reduced or eliminated the customs duty on originating goods of the other nation.
• One nation can request the other nation about the possibility of accelerating the reduction or elimination of customs duty.
• Goods covered under the CEPA shall be eligible for preferential treatment provided they satisfy certain rules of origin.
• Neither of the nations shall maintain or adopt any non-tariff measures on the import or export of goods destined for the other country in the agreement except for the rights and obligations under the WTO agreement.
• Measures that create unnecessary obstacles to trade in goods between both countries should not be prepared, adopted, or applied by any of the countries.
• In case a country decides to impose an anti-dumping duty, then it shall impose a duty less than the margin of dumping if such lesser duty is sufficient to remove the injury to the domestic industry.

• Benefits of India-Korea CEPA:

• By establishing a cooperative framework, it liberalized and facilitated trade in goods and services between both countries.
• It expanded the horizons of investments.
• It created a more favorable environment for trade and businesses while promoting conditions of fair competition in the free trade area.
• It established transparent rules that govern investment and trade between both parties.
• It improved the competitiveness and efficiency of the manufacturing and service sectors of both nations and opened new doors for a higher level of trade and investment. 

The soft launching of the EODES will hopefully mark a major milestone in the flourishing bilateral relations between India and South Korea.