Eligibility and Benefits of AEO Certification Programme

Who is an Authorized Economic Operator or an AEO?

Any business entity who is involved in the movement of internationally who has fulfilled all the compliances of the Customs Laws and has also fulfilled the World Customs Organization SAFE Framework of standards can be said as an Authorized Economic Operator. An Authorized Economic Operator gets a certificate Directorate of International Customs which grants them the certification and allows them to get the benefits of the AEO.

Implications of AEO in India:

The Authorized Economic Operator Programme was introduced in India in 2011 and then it was implemented in the year 2016. The AEO Programme in India for Importers and Exporters is classified into 3 categories:

1. First is AEO Tier 1

2. AEO Tier 2

3. AEO Tier 3.

4. AEO LO: For Logistic Service Providers, Warehouse Operators, custom brokers and terminal operators, AEO LO Programme is required which is also called the Logistic Operator Programme.

Now, the AEO Tier 1 & Tier 2 both are valid for three years while the Tier 3 and AEO LO are valid for 5 years. Any importer or exporter can directly apply for either tier 1 or tier 2 directly but for applying for tier 3 status they need to have and maintain the AEO Tier 2 status for at least 2 years.

Eligibility Criteria for obtaining AEO Certificate

1. Your company should have been established in India;  

2. It should be into customs related activities;

3. It should have filed at least 25 custom shipments in the previous financial year.

Compliances under AEO Programme

In order to be a part of the Indian AEO Programme , the entity or the importer/exporter would need to fulfil certain compliances which include general compliances, legal compliances, financial compliances, business partner security details, safety and security of the entity, transport and commercial records and security plans of the company or the entity along with the process maps that are being followed and various other documentation which would be required in order to be a part of the AEO Programme.

Benefits of obtaining AEO Certificate:

There are various benefits to it for importers and exporters and the logistics operators as well.

1. You get the reduction in Bank Guarantee,

2. You get Direct Port Delivery,

3. You get the Deferred payment of duty and

4. You get a higher facilitation of your goods at a very faster rate than normal importers and exporters.

5. You also get the security that your goods will be facilitated at a much better rate than other goods.

In Nutshell:

ASC can help you in filing the AEO Application and obtaining the AEO Certification from the Department by assisting you in the compliances as well as the documentation which need to be filed for the processing of the AEO Application. Also, it would assist the Company in expediting its application process as well as representation before the customs department. In order to successfully achieve the goal of AEO Certification.

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Created on Aug 28th 2022 13:36. Viewed 251 times.

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