Regarding the UN Framework Convention on international tax cooperation, it was mutually agreed that overlap between the different tracks should be avoided.

Thomas led a mission of the Directorate General for Taxation and Customs Union (DG TAXUD) officials early this month to New Delhi. His visit’s focus was on the EU Carbon Border Adjustment Mechanism (CBAM).

The CBAM is the EU's tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.

CBAM will apply in its definitive regime from 2026, while the current transitional phase lasts between 2023 and 2025. A gradual introduction of the CBAM from 2026 to 2034 will be aligned with the phase-out of the allocation of free allowances under the EU Emissions Trading System (ETS) acting as a driver for EU companies to decarbonise their production faster.

Thomas welcomed India’s plans to decarbonise its economy, underlining the shared commitment to collaborate with India in the latter’s decarbonisation efforts, a release from the Delegation of the European Union (EU) to India and Bhutan said.

The EU and India have a long-standing Customs Cooperation (CCMAA Agreement) since 2004. Thomas focussed on the latest challenges of customs: cross-border e-commerce and designer drug precursors. India agreed to reinforce the bilateral ties on this.

Ongoing negotiations for an EU-India free trade agreement include an upgrade of this customs cooperation.

Meanwhile, the Federation of European Business in India (FEBI), the official Chamber of EU businesses in India, held its first annual general meeting in New Delhi recently, formalising the board of directors with 14 elected members and confirmed key office bearers.

Rémi Maillard, president and managing director of Airbus in India and South Asia, will lead FEBI as its first president, with Sanjay Tiwari, public affairs advisor to Maersk India Pvt. Ltd., and Oscar Esteban president of Indo-Spanish Chamber of Commerce elected as vice president and treasurer respectively.

Fibre2Fashion News Desk (DS)