CBIC’s AEO programme aims to enhance International supply chain security and facilitate movement of legitimate goods by optimizing Customs operations through close cooperation with the principal stakeholders of the International supply chain viz. Importers, Exporters, Logistics providers, Custodians/Terminal operators, Custom Brokers and Warehouse Operators. It provides for three tier AEO status for Importers/Exporters i.e. AEO T1, AEO T2, AEO T3.
The AEO T3 is the highest level of accreditation with the most significant benefits. Another category of AEO-LO covers all other entities in the supply chain such as Customs Brokers, custodians/terminal operators, logistic providers etc.
The salient features of the AEO programme are as follows:
(a) Benefits:
- Recognized as safe, secure, and compliant business partners in International trade;
- Highest level of Customs facilitation;
- Facility of Direct Port Delivery (DPD) for imports;
- Facility of Direct Port Entry (DPE) for exports;
- Waiver of full or part of the Bank Guarantee requirements, wherever needed;
- Waiver of Merchant Overtime Fees (MOT);
- Facility of deferred payment of Customs Duties on imports;
- Transactional audit replaced by selective on-site audit based on risk assessment;
- Faster disbursal of Duty Drawback amount;
- Fast tracking of Refunds and Adjudications;
- Self-certified copies of documents accepted for clearance;
- Access to a Client Relationship Manager to resolve legitimate concerns/ issues.
(b) Automated approval process:
The AEO application & certification process has been digitized to become more efficient, transparent & user-friendly:
- The entire gamut of processes involved with the AEO T1 certification is done online including the filing, processing and digital delivery of AEO Certificate;
- Online Filing of AEO T2 and T3 applications introduced with real time monitoring facility for applicants.
(c) Special AEO package for MSME:
The AEO accreditation process for MSMEs has been rationalized and simplified:
- Only 10 Customs clearance documents to be filed in one year;
- Clean compliance record for 2 years;
- Decision on grant of AEO status within only 15 days for AEO T1 and 3 months for AEO T2.
(d) Continuous certification & auto renewal of AEO T1:
The facility of continuous certification/ auto renewal has been made available subject to submission of annual self-declaration and review.
(e) Mutual Recognition Agreement (MRA):
MRAs are International extension of domestic AEO programmes of various countries. Through mutual recognition of AEOs, two Customs administrations agree to mutually recognize each other’s AEO authorizations issued under their respective AEO programmes and provide reciprocal benefits to such AEOs. MRAs strengthen end-to-end security of supply chain and facilitates movement of legitimate goods by engaging players in the international supply chain. MRAs also multiply benefits for traders at a global level.
(Republished with amendments)
