Singapore-India Sign Mutual Recognition Arrangement of Authorised Economic Operator Programmes – to Expedite Customs Clearance for Certified Companies

Introduction

On 20 May 2025, Singapore and India signed a Mutual Recognition Arrangement (“MRA“) of Authorised Economic Operator (“AEO“) programmes (“Singapore-India MRA“), marking a key milestone in the facilitation of bilateral trade between both countries.

The AEO programme in each country is a voluntary certification for companies involved in the international movement of goods to certify companies which are a trusted partner for customs authorities. The Singapore-India MRA means that the national AEO supply chain security programmes in each country is recognised and accepted by the other country. The Singapore-India MRA will therefore enable certified AEO companies in both countries to benefit from expedited customs clearance, with reduced documentation checks and cargo inspections when exporting goods bilaterally.

This Update delves into greater detail on the key benefits and implications of the Singapore-India MRA for businesses.

Singapore’s MRAs of AEO Programmes

Singapore’s STP and STP-Plus Programmes to Enhance Global Supply Chain Security and Trade 

The Singapore Customs local AEO programme is the Secure Trade Partnership (“STP“) programme, which is a voluntary certification programme consistent with the World Customs Organisation’s framework to secure and facilitate global trade. The STP programme is open to all supply chain stakeholders directly involved in the international movement of goods (including importers, exporters, manufacturers, freight forwarders, warehouse operators, transporters and terminal operators). The STP programme includes:

1. Supply chain security: Encourages certified companies to adopt robust security measures using a risk-based approach in their trading operations to improve global supply chain security. By participating in the STP programme, a company demonstrates its commitment to adopt and implement appropriate security measures and its willingness in keeping its supply chain secure;
2. Flexibility and customisation: Allows flexibility and customisation of security measures based on the company’s business model and its role in the international supply chain; and
3. Greater recognition: Ensures that the company is recognised as a trusted partner of Singapore Customs and will partner Singapore Customs to enhance the security of the global supply chain.

Further, companies with higher security measures in place will be eligible for the Singapore Customs’ Secure Trade Partnership-Plus (“STP-Plus“) programme. To date, 84 companies are certified by Singapore Customs under its STP-Plus programme and enjoy the following benefits:

1. Greater visibility and efficiency: STP-Plus companies will benefit from increased visibility of goods in the supply chain, reduction in pilferages and greater efficiency in their supply chain management;
2. Fewer inspections: Their cargo will be less likely to be inspected locally;
3. Greater recognition: They will be recognised as lower risk companies (i.e. their branding will be enhanced), and as known consignors under the Regulated Air Cargo Agent Regime;
4. Greater convenience: A single point of contact from Singapore Customs will be provided to STP-Plus Companies; and
5. Greater trade facilitation: They will receive additional trade facilitation through the various MRAs or mutual recognition arrangements signed with Singapore Customs’ partners (more on this below).

Singapore’s Expanding Framework of MRAs of AEO Programmes to Enhance Mutual Recognition 

To multiple the benefit of its national AEO programme, Singapore Customs has entered into various MRAs with other customs administrations of each country’s respective national AEO programme. Notably, Singapore Customs is the first Southeast Asian customs administration to enter into such MRAs.

To date, Singapore Customs has signed the regional Association of Southeast Asian Nations (ASEAN) AEO MRA (“AAMRA“), as well as various MRAs with its counterpart customs administrations in the following 13 countries: Canada, Republic of Korea, Japan; People’s Republic of China (“PRC“), Chinese Taipei, Hong Kong, the United States (“US“), Australia, Thailand, New Zealand, the United Kingdom, Malaysia and India.

An MRA with a partner means that Singapore’s security requirements and validation process of its national AEO programme is consistent with the partner’s equivalent national AEO programme, and Singapore Customs’ certificaiton will be recognised by the MRA partner. Hence, an STP or STP-Plus certified company in Singapore will enjoy the trade facilitation benefits in the other country.

The Singapore-India MRA

Against the backdrop of Singapore’s total trade with India, which averaged S$30.5 billion annually between 2022 and 2024, the Singapore-India MRA is particularly significant because:

1. Supply chain security recognition: It recognises the compatibility of both countries’ respective supply chain security regimes; and
2. Greater trade integration: It signals improved mutual trade efficiency and regional economic integration between trusted trade partners, as well as the facilitation of legitimate trade and customs cooperation at the highest standards.

Further, the Singapore-India MRA is expected to present numerous benefits to companies certified under Singapore Customs’ AEO programme and India’s AEO programme. For example:

1. Expedited clearance: The Singapore-India MRA enables such certified companies to benefit from more expedited and predictable customs clearance, with reduced documentation checks and cargo inspections, when exporting goods bilaterally. This would apply even in the event of trade disruptions.
2. Simplified procedures: Certified companies will also be recognised as low-risk and can benefit from simplified customs procedures for bilateral exports.
3. Greater facilitation: The cargo of certified companies will enjoy a higher level of facilitation during clearance, both domestically and overseas.
4. Priority treatment: Such cargo will also receive priority treatment if it has been selected for inspection.
5. Costs savings: In the round, certified companies are likely to see lower operational costs, enhanced supply chain security, and a stronger competitive advantage overall.

To take full advantage of the Singapore-India MRA, traders in Singapore should ensure that your business is AEO-certified and follow these practical steps:

1. For Exports:
   • Declare your AEO code in TradeNet import and/or export permit declarations. This allows the customs authority to identify your shipment as eligible for expedited treatment.
   • If you are a STP-Plus company exporting to India, provide your AEO code to your Indian importer so they can include it in their import declarations.

2. For Imports:
   • Obtain your Indian business partner’s AEO code and declare it in your TradeNet import permit declarations.
   • If you are a STP-Plus company importing from an Indian AEO exporter, declare both your own AEO code and your business partner’s AEO code in your TradeNet permit declarations.
   • Note that the Singapore AEO code declared in the Customs Clearance Permit should belong to the importer, exporter or freight forwarder for that shipment. Freight forwarders providing only permit declaration services should not declare their AEO code.

Concluding Words

The Singapore-India MRA presents significant costs, operational and strategic advantages, especially for businesses already engaged, or looking to engage, in cross-border trade between Singapore and India.

Especially in the light of escalating global trade tensions between the USA and the PRC and the consequent uncertainties that these present, businesses should ensure that they stay updated and, if not already AEO-certified, consider applying for the STP or STP-Plus programme to unlock the further benefits provided by the MRAs to better facilitate regional trade and enjoy the costs savings arising from such arrangements.

As practical next steps to leverage the Singapore-India MRA, traders in Singapore should therefore review your current supply chain security practices and consider AEO certification if you are not already certified, update your internal processes to ensure AEO codes are correctly declared in all relevant customs documentation, and engage in communication with your Indian business partners to coordinate the use of AEO codes for bilateral shipments.

For further information or tailored advice on how your business can benefit from the Singapore-India MRA or other MRAs and/or become a certified AEO under Singapore Customs’ STP or STP-Plus programmes, please reach out to our Team members set out on this page.