AUTHORIZED ECONOMIC OPERATOR (AEO)

 Authorized economic operator programme:

AEO is a programme is supported by WCO (World customs organization) SAFE framework of standards in order to secure & facilitate the global trade.

This scheme is introduced in order to promote the ease of doing business & facilitate the trade. The companies who hold this certificate gets some extra benefits, exemption & relaxation on their export & import shipments.

Circular: The AEO programme was announced under the circular 33/2016- Customs dated 22nd July 2016, this circular got amended later on 2018, the new circular is 03/2018- Customs dated 17th January 2018.                                                                      

Types of AEO certification and who can apply:

1) AEO-T1: Importers/ Exporters

2) AEO-T2: Importers/ Exporters

3) AEO-T3: Must have enjoyed T2 status for 2 years

4) AEO-LO: This is for CHA, Freight forwarders, Warehouse, Transports etc.

Benefits of AEO:

1) Direct port delivery for importers.

2) Priority clearance for export & import shipments(assessment and examination of Shipping bills/ Bill of entries will be processed on priority). 

3) Email notification for arrival/ departure of vessel.

4) AEO holder can request on site examination or inspection. 

5) ID cards for AEO holder's representatives in order to enter to Custom House, CFS, ICD etc.

6) In case of any Dispute it can be investigated & resolved within 6 months.

7) Reduction or waiver in Bank guarantee.

8) Deferred duty payment

9) AEO holder can access their consolidated export & import data.

10) Fast GST refund

11) Fast drawback processing

12) Self-certified copies of FTA / PTA or any other certificates would be accepted.

13) Paperless declarations, supporting documents not required.

Eligibility criteria: Anyone legal company (entity) who is involved in international business (export/import) is eligible to apply for AEO certification, but there are some conditions (mentioned below) which needs to be fulfilled.

1) The entity should have handled at least 25 import or export shipments in last financial year.

2) The company must have carried out it's business activities for last 3 years.

3) The applicant should be solvent financially for last three financial years.

4) The applicant must not have received any show cause notice regarding fraud, forgery, outright smuggling or must not have any tax fraud case (service tax collected from customer but not deposited to government)against them within last 3 financial years.

AEO certification is given entity wise and not group wise. e.g. There are 4 companies under a single group each and every company has to apply for AEO status separately.

Verification process:

1) AEO-T1: Verification done on the basis of submitted documents.

2) AEO-T2: Verification done on the basis of document submission as well as physical verification of the site.

3) AEO-T3: If the entity is having AEO-T2 status already verification will be done only on the basis of document submission only but if the entity is not having AEO-T2 status they have to go through document submission as well as physical verification of the site.

4) AEO-LO: Verification done on the basis of document submission as well as physical verification of the site.

Validity & Renewal:

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