Abu Dhabi Customs and Indian Tax Authority Forge Cooperation Agreement

Abu Dhabi Customs and India's Central Board of Indirect Taxes and Customs signed a cooperation agreement to create a digital trade corridor between the two countries. The partnership aims to streamline cross-border commerce through data sharing and automation, building on the existing UAE-India Comprehensive Economic Partnership Agreement.

The signing took place during the Abu Dhabi Investment Forum in Mumbai, with senior officials from both sides present. Rashid Lahej Al Mansoori from Abu Dhabi Customs and Shri Vimal Kumar Srivastava from Mumbai Customs Zone II formalized the agreement, witnessed by Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi's Department of Economic Development, and UAE Ambassador to India Dr. Abdulnasser Jamal Al Shaali.

The digital trade corridor represents a significant step toward modernizing how the UAE and India handle bilateral trade. Instead of relying on traditional paper-based processes, both countries will develop shared technical frameworks that allow real-time data exchange between their customs systems.

This matters because UAE-India trade has grown substantially since their economic partnership agreement took effect. The UAE is India's third-largest trading partner, with bilateral trade exceeding $85 billion annually. But processing shipments between the countries still involves multiple manual steps that create delays and increase costs for businesses.

The pilot project will test automated systems that can verify shipments, process documentation, and clear goods faster. Both sides plan to work with private sector partners to build scalable technology that other countries could eventually adopt.

For traders and logistics companies, this could mean shorter wait times at ports and reduced paperwork. The system aims to increase transparency in customs processes while maintaining security standards that both governments require.

The timing aligns with broader digitization efforts across the Gulf region. The UAE has been pushing to become a global trade hub, and India has been modernizing its customs infrastructure to handle growing export volumes.

If the pilot succeeds, both countries indicated they plan to expand the digital corridor concept to create a long-term model for trusted trade routes. This could influence how other nations approach cross-border commerce digitization, particularly in regions where trade volumes are growing rapidly but infrastructure hasn't kept pace.