Authorized economic operator program for exporter and importer

## What is AEO (Authorized Economic Operator?)

AEO is facilitation scheme i.e. holder of this certificate is entitled for certain privilege, benefits and exemption on account of import and export, In India, AEO certification is Three-Tier AEO (T1, T2, T3).This three tier certification is launched by Indian Customs Circular No. 33/2016 dated 22th July, 2016 (in suppression of Circulars No. 42/2005 dated 24.11.2005- old ACP scheme and Circulars No. 28/2012-Customs dated 16.11.2012- old AEO programme).

Now, Old ACP and OLD AEO is merged and resulted into three certification (T1, T2, T3) for importer and exporter and one other certificate namely (AEO-LO certificate) will be issued for other than importer and exporter such as Logistics Providers, Custodians or Terminal Operators, Customs Brokers and Warehouse Operators.

## Who is entitled for AEO CERTIFICATION?

Anyone involved in the international supply chain that undertakes Customs related activity in India can apply for AEO status irrespective of size of the business. These may include exporters, importers, logistic providers (e.g. carriers, airlines, freight forwarders, etc.), Custodians or Terminal Operators, Customs House Agents and Warehouse Owners. Others who may qualify include port operators, authorized couriers, stevedores. The list is not exhaustive.

Small and medium scale enterprises who has filed 25 documents i.e. either Bills of Entry or Shipping Bills during the last financial year is also entitled for AEO.

## AEO is applicable to OLD Company or new company

The applicant should have business activities for at least three financial years preceding the date of application.

## Type & Applicability, Validity & renewal of AEO Certification


Types of Certificate

Applicability

Validity

Time limit for submission of application for renewal before lapse of validity

AEO-T1Certificate

Only Importer and Exporter can have T1, T2 & T3 certificate.

2 Year

30 Days

AEO-T2 Certificate

3 Year

60 Days

AEO-T3 Certificate

Applicant must have continuously enjoyed the status of AEO-T2 for at-least a period of two years preceding the date of application for grant of AEO-T3 status.

5 Year

90 Days

AEO-LO Certificate

Other than importers and exporters, namely Logistics Providers, Custodians or Terminal Operators, Customs Brokers and Warehouse Operators.

5 Year

90 Days


## Who is not entitled for AEO CERTIFICATION?

Businesses that are not involved in Customs related work / activities will not be entitled to apply, in general, banks, insurance companies, consultants and the like categories of businesses will not be eligible for AEO status.

## AEO is branch wise or entity wise

AEO certification is entity wise not branch wise, location wise and GroupWise. If a group of company have 5 companies then all company will have to apply separately.

## Main benefits of certificate under AEO scheme


Benefits

AEO-T1Certificate

AEO-T2 Certificate

AEO-T3 Certificate

High level of facilitation

Yes

Yes

Yes

Direct Port Delivery import/export container

Yes

Yes

Yes

ID cards to authorized personnel for hassle free entry to Custom Houses, CFSs and ICDs.

Yes

Yes

Yes

Separate space earmarked in Custodian’s premises

Yes

Yes

Yes

Reduction on Bank Guarantee

50% reduction

75% reduction

100% reduction

Investigations, if any, would be completed, in six to nine months

Yes

Yes

Yes

Dispute resolution within six months

Yes

Yes

Yes

E-mail regarding arrival/ departure of the vessel carrying their consignments

Yes

Yes

Yes

24/7 clearances on request at all sea ports and airports

Yes

Yes

Yes

Seal verification/scrutiny of documents by Custom officers would be waived

Yes

Yes

Yes

Deferred payment of Duty

Yes

Yes

BEs/SBs will be processed on priority

Yes

Yes

Yes

Faster completion of Special Valuation Branch (‘SVB’)

Yes

Yes

Yes

Shorter cargo release time

Yes

Yes

Yes

facility to paste MRP stickers

No

Yes

Yes

access to their consolidated import/export data

No

Yes

Yes

Paperless declarations with no supporting documents in physical form.

No

Yes

Yes

Client Relationship Manager”(CRM at the level of Deputy / Assistant Commissioner available at port who will act voice of AEO holder

Yes

Yes

Yes

Expedite refund of IGST

45 Days

30 Days

No Merchant Overtime Fee (MOT)

No

Yes

Yes


## Benefits for AEO-LO certificate


Logistic Service Providers,

Custodians or Terminal Operators,

Customs Brokers,

Warehouse Operators

-

-

-

-

-

-

-


To whom application to be made for certification and renewal

The application should be sent to the AEO Programme Manager, Directorate General of Performance Management, Customs & Central Excise, ‘D’ Block, I.P. Bhawan, I.P. Estate, New Delhi – 110002.

The Additional Director General, Directorate General of Performance Management, Customs & Central Excise, ‘D’ Block, I.P. Bhawan, I.P. Estate, New Delhi – 110002 will be the AEO Programme Manager and AEO Programme Team will comprise officers from the Directorate General of Performance Management and its regional offices.

 

RAJNISH KUMAR 
on 20 September 2017
Published in Taxation
Views : 136
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