AEO is a trade facilitation scheme for ease of doing business considering international development, holder of this certificate is entitled for privilege, benefits, exemption, and relaxation on account of import and export. This certificate is issued for period after that to be renewed.
This scheme is based on principle of sharing role and responsibility of customs with trade and industry and objective is to delink payment and clearance, to accept paperless declaration, increases efficiency, self-certification, earliest refund, and drawback, request based examination/inspection etc.
ACP (accredited client program) and old AEO (authorized economic operator) is merged and resulted into three certifications namely AEO-T1, AEO-T2, AEO-T3, AEO-LO.
This three tier certification is launched by 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).
Anyone involved in the international supply chain that undertakes Customs related activity in India can apply for AEO Certification 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 applicant should have business activities for at least three financial years preceding the date of application.
AEO certification is entity wise not branch/location/group wise. If a group of company have 5 companies, then all company will have to apply separately.
Businesses that are not engaged 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.
Starting point for an AEO process is document and standard operating procedures (SOP) with respect to safety and security plans, and process map for movement of goods in international trade. We can help in documenting the process of international trade in the form of SOPs as a first step toward organizational effort to formalise an AEO program.
We follow a hand holding approach for obtaining AEO Status right from the planning and readiness assessment stage till getting the final approval of AEO status in following ways:
For more details on AEO Certification read our other BLOGS: