The Hindu Business Line : `Govt to sign more customs cooperation pacts'

THE Government would in the coming days sign customs-cooperation agreements with a number of key countries including China, Singapore, Thailand, Canada and Australia, the Union Finance Minister, Mr P. Chidambaram, said here on Tuesday.

Speaking at the Investiture Ceremony of the officers of the Customs, Central Excise and the Narcotics Board, the Finance Minister said that the Government would insist on trade facilitation clause in these agreements.

He highlighted that the Government had recently signed Customs Co-operation Agreements with the US, the European Union and South Korea.

The Finance Minister also underscored the need for change in the role of the customs department, with greater accent on trade facilitation. Mr Chidambaram said there was an urgent need to increase the flow of trade and held that the trade facilitation needs to be stepped up at the ports and airports.

Mr Chidambaram said that the role of the customs department would be transformed eventually from one involved in revenue collection to that of tracking down illegitimate activities including trade in arms, money laundering and drug trafficking.

On the proposed State-level value-added tax (VAT) regime, he said that the Government wants to ultimately move towards goods and services tax (GST). Describing this as a long-term goal, Mr Chidambaram said the Government was keen on effective implementation of the VAT, which is to be introduced from April 1, 2005.

He said that the use of the latest technologies would also help the merger of the State-level VAT and excise duties into GST in the long run. Mr Chidambaram also said that it is not for him to set a deadline for the introduction of GST.

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