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 ( 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.

Author Bio

Qualification: CA in Job / Business
Company: Consultancy Firm
Location: Chennai, Tamil Nadu, IN
Member Since: 27 Sep 2020 | Total Posts: 2
Iam CA.S.Balaganesh associate member of ICAI collectively having 4 years of experience in the filed of Audit, Taxation and Fema matters. Continuously evolving new area of opportunities to get a understanding of it and provide a assistance to various clients. View Full Profile

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March 2021