Introduction
Authorised Economic operator Programme (AEO) is a voluntary compliance programme by Indian customs to provides a strengthen of international supply chain facility and facilitate movement of legitimate goods.
Structure of AEO Programme
AEO Programme is a three-tier programme for importers and exporters i.e. AEO-T1, AEO-T2 and AEO-T3 in the increasing degree of benefits accorded and compliance requirements. And also provide the AEO LO Certificate for other than importers and exporters eg:Custom brokers, Warehouse operators etc.
AEO Eligibility
1. Entity Established in India
2. Business should involved in customs related activity
3. Should have dealt with minimum 25 customs documents (Either Bill of entry or Shipping Bill) in the last fiscal year.
4. Business activity for last 3 financial years preceding the financial year of date of application However in exceptional cases, on the basis of physical verification of internal controls of a newly established business entity, the AEO Programme Manager can consider it for certification.
Benefits AEO-T1 Vs AEO -T2 status
| AEO – T1 | AEO – T2 |
| High Facilitation (Shorter cargo release time) | Higher facilitation compared to AEO T1 status |
| Direct Port Delivery (DPD)/Direct Port Export (DPE) Facility | Waiver of Seal verification, Onsite inspection/stickers, Priority in scanning/assessment. |
| BG reduced rate of 50% | BG reduced rate of 25% |
| ID Cards/ Space in warehouse | Deferred duty payment |
| Email on arrival/Departure | Refund/rebate of customs/CED in 45 days.
Disbursal of drawback amount within72 hours of EGM Submission |
| 24/7 Clearances on request at all sea Ports and airports – No merchant overtime fee (MOT) charges need to be paid | Faster Completion of SVB proceedings in case of related party imports. |
Mode of Application
For AEO – T1 status to file application online (www.aeoindia.gov.in). For other status AEO T2 & T3 Manual application to be submitted to the respective jurisdiction custom chief commissioner’s office with a copy to AEO Programme Manager, Directorate of International Customs New Delhi. For AEO T3 status one must have a continuously enjoyed the AEO 2 status at least 2 years preceding the date of application.
Documents required for registration
- Application form
- Security Plan about the entity Procedural, Documental, Physical security and Access controls – Not applicable for AEO – T1 Status
- Process Map should demonstrate the flow of goods
- Site Plan of the entity premises
- Self-Assessment form of General Compliance, Legal Compliance, Managing Commercial and transport records, safety and security
- Financial Solvency Certificate
- Business Partner Details Applicable only for AEO T3 Status
Time limit for grant of certificate
| For AEO T1 Status | With in 30 days of submission of Application. | |
| For AEO T2 Status | ||
| Intimation n upon submission of Documents | Within 30 days | |
| Physical verification of Documents | Within 15 days | |
| Onsite verification of business premises | Within 90 days | |
| Prepare a report by AEO programme team | Within 60 days of completion of visit | |
| Issue certificate | Within 30 days of recommendation by AEO programme team | |
Validity of Certificate
Validity of AEO – T1 & T2 Status Certificate is 3 years and 5 years for AEO T3 and AEO LO status certificates. Renewal before lapse of validity – 30 days for AEO T1, 60 days for AEO T2 and 90 days for AEO T3 and AEO LO.
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