Cabinet Secretary to head National Committee on Trade Facilitation

NEW DELHI: The government has decided to appoint Cabinet Secretary as the head of the National Committee on Trade Facilitation, changing its earlier decision of making commerce secretary and revenue secretary jointly chair it.

On February 17, the Union Cabinet approved India's proposal for notification of its commitments under the Trade Facilitation Agreement (TFA) of the World Trade Organization ( WTO) and the constitution of this committee wherein the decision of joint chairs was made public.

However, it was in the minutes of the Cabinet meeting that this change was made.

"Since there will be inter-ministerial issues between commerce department and finance ministry in implementing the agreement, the government has decided that Cabinet secretary will chair it," said an official privy to the development.

Another official said that with the change, the other two secretaries will become members of the committee.

"We will form the terms of reference for the committee after taking suggestions from industry associations and border states," the official said and added that India will notify its ratification to the WTO in a few days.

The commerce department also plans to take on board the suggestions of big states like Maharashtra as a lot of trade takes place at the Nhava Sheva port.

The trade facilitation agreement, which is part of the WTO's Bali ministerial package of 2013, contains provisions for expediting the movement, release and clearance of goods, including goods in transit.

It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It will come into force after it is formally accepted by two-thirds of the WTO membership.