India and the countries of the Southern Common Market (MERCOSUR) have signed the first additional protocol to the Preferential Trade Agreement. The document provides for the recognition of electronic certificates of origin for goods on an equal basis with paper documents. This was reported by
IANS, a TV BRICS partner.
According to the protocol, electronic certificates of origin will have the same legal validity as paper documents. They must be issued and signed electronically by authorised bodies and officials in accordance with the national legislation of the parties.
The transition to digital documents is expected to reduce processing time and costs associated with issuing and verifying certificates, as well as simplify trade procedures between India and MERCOSUR.
The Preferential Trade Agreement between the parties was signed in 2004 and entered into force in 2009. It provides for tariff reductions on 450 product categories by India and on 452 categories by MERCOSUR.