AUTHORISED ECONOMIC OPERATOR (AEO)

AUTHORIZED ECONOMIC OPERATOR (AEO)

The Authorized Economic Operator (AEO) Programme seeks to provide tangible benefits in the form of faster Customs clearances and simplified Customs procedure to business entities who offer a high degree of security guarantees in respect of their role in the supply chain.
However, keeping in view of international developments and in view of the focus of the Government of India on “Ease of Doing Business”, a requirement of having a current and updated system in place, a new comprehensive unified trade facilitation programme has been developed by incorporating the existing ACP Scheme and current AEO programme into a revised AEO Programme.
AEO is a voluntary compliance Programme. It enables Indian Customs to enhance and streamline cargo security through close cooperation with the principal stakeholders of the international supply chain viz. importers, exporters, logistics providers, custodians or terminal operators, custom brokers and warehouse operators.

TIERS WHO CAN APPLY FOR AEO CERTIFICATE REGISTRATION

It has been decided that the existing ACP and AEO programmes will be merged into this new AEO programme. For the economic operators other than importers and the exporters, the new programme offers only one tier of certification (i.e. AEO-LO) whereas for the importers and the exporters, there will be three tiers of certification (i.e. AEO-T1, AEO-T2 and AEO-T3). Accordingly, henceforth the AEO Programme Manager may, following an application by an economic operator, issue the following Authorized Economic Operator Certificates (hereinafter referred to as AEO certificates) to which the applicant may be eligible as per the eligibility conditions and criteria.

ADVANTAGES OF AEO T-1

• Status – Use of AEO Logo – Recognition by Govt. Agencies
• ID Cards to Authorised Personnel for hassle free entry to Custom Houses, Ports, CFSs and ICDs.
• Direct Port Deliveries of imports (DPD) – Huge cut in time of delivery
• Direct Port Entry of factory stuffed containers for exports (DPE)
• Shorter cargo release time
• Separate space earmarked in Custodian’s premises
• 50% of normal Bank Guarantee, if required
• Wherever feasible, they will get separate space earmarked in Custodian’s premises
• 24/7 clearances and without Merchant Overtime Fee 

ADVANTAGES OF AEO T-2

• All the Benefits offered in AEO-T1
• Faster Customs clearance and simplified Customs procedure
• Container seal verification/scrutiny of documents would be waived
• Facility of deferred payment of duty will be provided, from a date to be notified
• 25% of normal Bank Guarantee, if required
• Facility to paste MRP stickers in assesses premises
• On-site inspection/examination per request
• Access to import/export data through ICEGATE
• Facility of submitting paperless declaration with no supporting documents in physical form

ADVANTAGES OF AEO T-3

• All the Benefits offered in AEO-T2
• Highest level of facilitation
• Normally no Scanning of containers
• Self-certified documents suffice, no insist upon original documents
• No Bank Guarantee in normal case
• On request, will be provided on-site inspection/examination
• Faster refunds/rebate within 30 days

ADVANTAGES OF AEO-LO

1. CUSTOMS BROKERS:

• Waiver of Bank Guarantee to be furnished under regulation 8 of the CBLR, 2013.
• Extended validity (till validity of AEO status) of licenses granted under regulation 9 of the CBLR, 2013.
• Waiver from fee for renewal of license under sub clause (2) of regulation 11 of CBLR, 2013.
• Facility of Execution of running bond
• Exemption from permission on case-to-case basis in case of transit of goods.

2. LOGISTIC SERVICE PROVIDERS:

• Waiver of bank Guarantee in case of transshipment of goods under Goods imported (Condition of Transshipment) Regulations, 1995
• Facility of Execution of running bond.
• Exemption from permission on case-to-case basis in case of transit of goods.

3. CUSTODIANS OR TERMINAL OPERATORS:

• Waiver of bank Guarantee under Handling of cargo in Customs Area Regulations 2009.
• Extension of approval for custodians under regulation 10(2) of the ‘Handling of cargo in Customs Area Regulation 2009’ for period of 10 years.

4. WAREHOUSE OPERATORS:

• Faster approval for new warehouses within 7 days of submission of complete documents
• Waiver of antecedent verification envisaged for grant of license for warehouse under circular 26/2016
• Waiver of solvency certificate requirement under circular 24/2016
• Waiver of security for obtaining extension in warehousing period under circular 21/2016
• Waiver of security required for warehousing of sensitive goods under circular 21/2016

MAJOR BENEFITS:

• Direct Port Delivery of imports to ensure just-in time inventory management by manufacturer.
• Direct port Entry for factory stuffed containers for export.
• Provision of Deferred Payment of duties – delinking duty payment and Customs clearances.
• Mutual Recognition Agreements with other Customs Administrations.
• Faster disbursal & tracking of drawback, refunds & adjudications.
• Request based on-site inspection/examination.
• Paperless declarations with no supporting documents.
• Up to 100% exemption from furnishing any Bank Guarantee.

AEO CERTIFICATE PROCESS

First, the applicant should register on the AEO portal. Then prepare documents required for submitting the application. After submitting documents, an AEO officer will be appointed to do the inspection in the company. If everything will be found correct and legal then the application will be granted. If there is some illegal information found then the application will be moved to rejection.

Documents required for submitting application for AEO certificate registration in India mentioned as below in the table:

S.No.	ANNEXURE	SUBJECT	APPLICATION FOR GRANT OF
			AEO-T1	AEO-T1	AEO-T1	AEO-T1
1	ANNEXURE-A	Application Form	YES	YES	YES	YES
2	ANNEXURE-B	Security Plan	NO	YES	YES	YES
3	ANNEXURE-C	Process Map	YES	YES	YES	YES
4	ANNEXURE-D	Site Plan	YES	YES	YES	YES
	ANNEXURE-E	Self-Assessment Form
5	ANNEXURE-E.1	General Compliance	YES	YES	YES	YES
6	ANNEXURE-E.2	Legal Compliance	YES	YES	YES	YES
7	ANNEXURE-E.3	Managing commercial and transport records	YES	YES	YES	YES
8	ANNEXURE-E.4	Financial Solvency	YES	YES	YES	YES
9	ANNEXURE-E.5	Safety and Security	NO	YES	YES	YES
10	ANNEXURE-F	Business Partner Details	NO	NO	YES	NO

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