The Department of Posts and United States Postal Service on Tuesday signed an agreement for electronic exchange of customs data related to postal shipments between the two countries, an official statement said.

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The agreement was signed by Department of Posts Deputy Director General (international relations and global business) Prannoy Sharma and United States Postal Service's Global Business Managing Director Robert H Raines Jr.

"The agreement will make it possible to transmit and receive electronic data of international postal items prior to their physical arrival at the destination and would enable customs clearance of postal items in advance in line with the evolving global postal framework. This will also improve the performance of postal services in terms of reliability, visibility and security," the statement said.

The US is the top export destination for India, with around 17 per cent share, which is also reflected in exchange of goods through postal channels.

"In 2019, around 20 per cent of outbound EMS (Express Mail Service) and 30 per cent of letters and small packets transmitted by India Post were destined to the USA whereas 60 per cent of the parcels received by India Post originated from the USA," the statement said.

The primary objective that will be served by this agreement is to facilitate 'ease of exports' for small and large exporters through postal channels from different parts of the country and will contribute towards making India an export hub for the world, it added.

Exchange of Electronic Advance Data (EAD) as per the agreement will be a key driver towards promoting mutual trade with emphasis on the exports from different parts of India to the US through the postal channel.

The US is a major destination of MSME products, gems and jewellery, pharmaceuticals and other local products from India, the statement said.