PROCESSING OF ACCREDITATION OF AEO-T1 SIMPLIFIED

In terms of Customs circular 33/2016 dated 22.07.2016 as amended by the Circular No. 3/2018- Customs dated January 17, 2018 & Circular No. 26/2018- Customs dated 10th August 2018 processing of AEO-T1 application is simplified.

ANNEXURE REQUIRED FOR AEO-T1 APPLICATION AS PER OLD CIRCULAR AND NEW CIRCULAR IS AS UNDER.

As per OLD Circular i.e.  33/2016 following annexures having format was prescribed in the said circular itself was required: Annexure – A, Annexure – C, Annexure – D, Annexure- E.1, E.2, E.3 and E.4.

Now, with effect from 10th August 2018 only Annexure-1 & Annexure-2 as prescribed in Circular No. 26/2018- Customs dated 10th August 2018 is required toward AEO-T1 accreditation/certification.

CHANGE IN ISSUING AUTHORITY OF AEO-T1 CERTIFICATE.

Earlier AEO-T1 certificate was issued by the AEO program manager/Commissioner, Directorate of International Customs, Connaught Place, New Delhi. With effect from 10th August 2018 AEO-T1 will be issued at zonal level i.e. jurisdictional Custom Chief Commissioner’s office. In other word earlier AEO-T1 was issued from Delhi only but with effect from 10th August 2018, AEO-T1 certificate will be issued from jurisdictional Custom Chief Commissioner’s office at Delhi/Bangalore/Mumbai/Chennai/Kolkata. After issuance of certificate fact to be intimated to AEO program manager/Commissioner, Directorate of International Customs at New Delhi. It is pertinent to note that AEO-T2, AEO-T3 and AEO-LO continue to be issued from Delhi.

LIST OF DOCUMENTS REQUIRED FOR AEO-T1

With effect from 10th August 2018 following documents are required to complete the Annexure-1 & Annexure-2 as prescribed in Circular No. 26/2018- Customs dated 10th August 2018.

A. Statutory Document

1. Certificate of Incorporation.

2. Copy of IEC/PAN/GST certificate of the applicant (Both side).

B. Financial Documents

  1. Audited financial statement (Balance sheet/Profit and loss account/Auditor report for the last thee financial year).
  2. Declaration of solvency from head of finance/CFO for the last three financial year.
  3. Solvency certificate from a Chartered Accountant certifying the net worth of last three financial It should be positive in all three financial year.
  4. List of show cause notice or disputed order under Customs/Excise/Service Tax/GST.
  5. List of contingent liability for the last three financial year. If the contingent liability pertain to Custom/Excise/Service Tax/GST fact should be elaborated.
  6. Net current asset (Current assets minus current liability) for the last thee financial year. If value is negative in any financial year reason should be given.

C. Other Documents

1. LIST OF SITE/Location & SITE PLAN OF ALL SITE, where import/export goods are handled (e.g. packed/unpacked/loading/unloading).

(If a company have twenty warehouse out of which import export goods are handled only at two site then site plan of only two site is required.)

2. Types of applicant (Manufacturer or Trader)

3. If Manufacturer (Main items of manufacture).

4. Types of industry (Automobile/Chemical/IT/Electronics/Food processing/Agriculture etc.)

5. Contact person of applicant (Name/Designation/Mobile/Email).

6. Major items of import and country of import

Sr. No Major Items of Import Customs Tariff Country of Import
(In descending order of volume i.e. country & items from which high volume of import to be mentioned first.)

7. Major items of export and country of export

Major Items of Exports Customs Tariff Country of Export
(In descending order of volume i.e. country & item which exported in large volume to be mentioned first).

8. No of documents (Bill of entry in case of import or Shipping in case of export) handled during the last financial year. Number of documents handled should be greater than 25.

9. Process Map (To illustrate flow of goods from placing of order till receipt of goods IN CASE OF IMPORT) and (Receipt of order till dispatch thereof in case of export) and role of business partner in such flow of goods e.g. CHA, Freight frowner etc.).

Define activity such as Define role of following business partner in all such activity
Manner of Purchase order. Applicant
Receipt of Import Invoice & Goods, Payment of duty. CHA
Filling of Bill of entry or shipping bills.

Credit period

Bank
Manner of receipt and payment etc. Freight Forwarder/Warehouse Operator/Custodian etc.

10. SOPs of Import and export activity of the applicant which should include the manner of handling of import/export license/authorization such as advance authorization/EPCG/MEIS/SEIS/WPC etc.

11. SOPs on documentation. (Which include safety feature and protection from fire/water/manipulation/ access right/period of retention, if document management is outsourced to any agency agreement copy should be enclosed.).A photo click of documents room /Storage of file should be enclosed.

12. If the goods imported is subject to anti-dumping/safeguard/Countervailing duty notification number and date along with detail of goods.

13. Brief on procedure to check customs classification/valuation of goods imported/exported within the organization.

14. Data recovery and IT Policy of the organization.

Effort have been made to make article error free, but it is possible that some error might have crept into this article.

Prepared and compiled by: CA Rajnish Kumar, (Email carajnishkumarca@gmail.com, Mobile 8130883807/8588867453).

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