AUTHORIZED ECONOMIC OPERATORS (AEO)

AEO is a programme under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade. It aims to enhance international supply chain security and facilitate movement of legitimate goods.

AEO encompasses various players in the International supply chain. Under this programme, an entity engaged in international trade is approved by Customs as compliant with supply chain security standards and granted AEO status & certain benefits.

AEO is a voluntary programme. It enables Indian Customs to enhance and streamline cargo security through close cooperation with the principlestakeholders of the international supply chain viz. importers, exporters, logistics providers, custodians or terminal operators, custom brokers and warehouse operators.

The Indian AEO Programme is implemented vide CBIC Circular 33/2016 – Customs dated 22.07.2016, as amended & Circular 26/2018- Cus dated 10.08.2018, which provides the statutory framework for the AEO programme. The circular provides for a three tier AEO Status for Exporters and Importers. The three tiers are AEO T1, AEO T2, AEO T3, where AEO T3 is the highest level of accreditation.

Recently, the AEO T1 processing was rationalized via new circular 26/2018 – cus. The present circular has cut down on the Annexure required for AEO T1 certification from earlier 7 to the present 2.  The present circular has not just rationalized the AEO T1 processing by taking away redundancy in earlier processing but it has also made more thorough certain key compliance requirements. The new circular has completely decentralised the processing of AEO T1. In the present the setup, the AEO T1 file can be approved at the Customs Zonal level. This has completely eliminated the time that was wasted in transit of application from zonal offices to DIC (AEO HQ).

Major Benefits of the AEO Certification are:

• Self-declaration of SION under Para 4.07A of FTP 2015-20 for AEO Exporters in cases where SION is not notified.

• Inclusion of Direct Port Delivery of imports to ensure just-in-time inventory management by manufacturers – Clearance from wharf to warehouse for AEO T1, T2 and T3.

• Inclusion of Direct Port Entry for factory stuffed containers meant for export by AEOs for AEO T1, T2 AND T3.

• Provision of Deferred Payment of duties – delinking duty payment and Customs clearance for AEO T2 and AEO T3.

• Benefits of Mutual Recognition Agreements with other Customs Administrations for AEO T2 andAEO T3.

• Fast tracking of adjudications and refunds including IGST refunds and disbursal of drawback.

For more details on AEO program please visit the below
https://old.cbic.gov.in/htdocs-cbec/home_links/india-aeo-prgm