Context: Recently, Chairman of the Central Board of Indirect Taxes & Customs (CBIC), officially introduced the India-Korea Electronic Origin Data Exchange System (EODES)  for faster clearance of imported goods.

About EODES 

• It is aimed at facilitating the smooth implementation of the India-Korea Comprehensive Economic Partnership Agreement (CEPA) by way of electronic exchange of origin information between the two customs administrations in respect of the goods traded under the CEPA.

• The data fields in a Certificate of Origin (CoO) shall be electronically shared by the exporting customs administration with the importing customs, as soon as the certificate is issued.

• This would facilitate faster clearance of imported goods.

• The success of the EODES project shall serve as a global template in the field of international Customs cooperation.

India-Korea Comprehensive Economic Partnership Agreement (CEPA)

• The India-Korea CEPA played a major role in enhancing trade between the two countries. The annual bilateral trade reached $21.5 billion in 2018. India-Korea CEPA became operational in January 2010.

Features of India-Korea CEPA

• Both nations reduced or eliminated the customs duty on originating goods of the other nation.

• One nation can request the other nation about the possibility of accelerating the reduction or elimination of customs duty.

• Goods covered under the CEPA shall be eligible for preferential treatment provided they satisfy certain rules of origin.

• Neither of the nations shall maintain or adopt any non-tariff measures on the import or export of goods destined for the other country in the agreement except for the rights and obligations under the WTO agreement.

• Measures that create unnecessary obstacles to trade in goods between both countries should not be prepared, adopted, or applied by any of the countries.

• In case a country decides to impose an anti-dumping duty, then it shall impose a duty less than the margin of dumping if such lesser duty is sufficient to remove the injury to the domestic industry.

Benefits of India-Korea CEPA

• By establishing a cooperative framework, it liberalized and facilitated trade in goods and services between both countries.

• It expanded the horizons of investments.

• It created a more favorable environment for trade and businesses while promoting conditions of fair competition in the free trade area.

• It established transparent rules that govern investment and trade between both parties.

• It improved the competitiveness and efficiency of the manufacturing and service sectors of both nations and opened new doors for a higher level of trade and investment. 

• The soft launching of the EODES will hopefully mark a major milestone in the flourishing bilateral relations between India and South Korea.

India-Republic of Korea Bilateral Relations 

• Diplomatic relations: They established diplomatic relations on 10 December 1973.

• Both countries formed a “Strategic Partnership” in 2010, which was elevated to “Special Strategic Partnership” in 2015 during the State Visit of Prime Minister Narendra Modi to Seoul. 

• India’s Role in Korean War: India played an important role in the Korean peninsula after Korea’s independence in 1945.

• Former Indian diplomat Shri K P S Menon was the Chairman of the 9-member UN Commission set up in 1947 to hold elections in Korea. 

• India sent an Army medical unit – the 60th Parachute Field Ambulance comprising 627 medical personnel during the Korean War as part of the UN Command, and treated about 220,000 patients.

• High-Level Exchanges: PM Narendra Modi paid a State Visit to ROK from 18-19 May 2015, during which bilateral relationship was upgraded to ‘Special Strategic Partnership.

• Economic Relations: Trade and economic relations gathered momentum following the implementation of CEPA in 2010.

• India and ROK launched an initiative ‘Korea Plus’ to promote and facilitate Korean investments in India.

• Bilateral trade in 2022 reached record levels of US$ 27.8 billion.

• India’s import volume stands at US$ 18.8 billion, while the export volume is US$ 9 billion. 

• Major items of India’s exports to Korea are mineral fuels/oil distillates (mainly naphtha), cereals, iron and steel. 

• Korea’s main export items are automobile parts, telecommunication equipment, hot rolled iron products, petroleum refined products, base lubricating oils, mechanical appliances, electrical machinery & parts and iron and steel products.

• Defence Relations:  The Defence Ministers of ROK and India have been interacting regularly since 2015.

• Service level talks across the three arms of the military are held annually.

• A Roadmap for Defence Industries Cooperation was signed between the two countries in September 2019.

• Cultural Relations:  An Indian Cultural Centre (renamed later as Swami Vivekananda Culture Centre (SVCC)) was established on July 1, 2011 as a cultural wing of the Embassy of India, Seoul.

• SARANG, the festival of India in Korea has been organised every year by the Embassy since 2015, to showcase India’s diverse art and music in various regions of ROK. 

• Nobel Laureate Rabindranath Tagore composed a short but evocative poem titled– ‘Lamp of the East’ – in 1929 about Korea’s glorious past and its promising bright future, which is fondly remembered by the Koreans and finds mention in Korean school textbooks.

• Indian Community: The total number of Indian nationals living in ROK is estimated to be around 15,000.

• A large number of Indian scholars are pursuing post-graduate and Ph.D programmes, mostly in pure sciences. 

• During the past few years, many professionals mainly in the areas of IT, shipping and automobile have come to ROK.

• They are working mostly with companies like Samsung, LG, Hyundai TATA Daewoo, TCS, Coupang etc.