BLOG- Benefits of certificate under AEO scheme

In a hurry to get the AEO certificationFill up this form  , or click here  or call Kapish at +91-9971770603 & +91-8802601212

AEO  offers a number of  benefits , including lower rate of physical inspections of imported / exported goods, faster release of shipments, preferential treatment by Customs Authorities, and deferred payment of duties, to the companies that meet compliance criteria and demonstrate the security of supply chain .

 

Benefits

AEO-T1

AEO-T2

AEO-T3

Shorter cargo release time

Yes

Yes

Yes

Direct Port Delivery (DPD) / or Direct Port Entry (DPE

Yes

Yes

Yes

ID to authorized personnel

Yes

Yes

Yes

Separate space earmarked in Custodian’s premises.

Yes

Yes

Yes

Bank Guarantee only to extent

50%

25%

0.00%

Investigations

In Six to Nine Months

Six months

Six months

Dispute resolution

Within Six Months.

Six

Six

e-mail regarding arrival/ departure of the vessel

Yes

Yes

Yes

24/7 clearances on request at all seaports and airports

Yes

Yes

Yes

No Merchant Overtime Fee (MOT) charges need to be paid

Yes

Yes

Yes

Waiver of seal verification/scrutiny of documents.

No

Yes

Yes

out of charge/let export order without any scrutiny by the officers

No

Yes

Yes

Front line of treatment for container scanning.

No

Yes

No selection for scanning

Facility of deferred payment of duty

No

Yes

Yes

Disbursal of drawback amount

 

Within 72 hours of EGM submission

faster

Assessment and/or Examination on priority

Yes

Yes

Yes

Faster completion of Special Valuation Branch (‘SVB’) proceedings

No

Yes, in time bound manner

Yes

Facility to paste MRP stickers in their premises

No

Yes

Yes

Post clearance audit

Yes

onsite PCA will be conducted once in three years only, no regular PCA.

On Intelligence information

Access to their consolidated import/export data through ICEGATE

No

Yes

Yes

Facility of submitting paperless declarations with no supporting documents in physical form

No

Yes

Yes

Client Relationship Manager” (CRM)  at AC/DC level at all port

No

Yes

Yes

Note: In terms of customs Notification No. 135/2016-Customs, Importers certified under Authorized Economic Operator programme as AEO (Tier-Two) and AEO (Tier-Three) are entitled for payment of duty under deferred payment scheme, means option of deferred payment is extended only to AEO-T2 and AEO-T3 certificate holder.

 

Benefits for AEO under Advance Authorization scheme of under Foreign Trade Policy (AEO LO)

AEO status holder shall be issued advance authorization on self-certification and declaration basis without ratification by the Norms Committee.

Logistic Service Providers:

  • Waiver of bank Guarantee.
  • Facility of Execution of running bond.
  • Exemption from permission in case of transit of goods.
  • In case of international transhipped cargo (Foreign to Foreign), for the pre-sorted containers wherein Cargo does not require segregation, ramp to ramp or tail to tail transfer of cargo can be affected without Customs escorts.

Customs Brokers

  • Waiver of Bank Guarantee
  • Extended validity (till validity of AEO status) of licenses
  • System Manager to incorporate date of validity of AEO from time to time in the System Directory
  • Waiver from fee for renewal of license.

Warehouse Operators

  • Faster approval for new warehouses within 7 days of submission of complete documents
  • Waiver of antecedent verification envisaged for grant of license for warehouse under  circular 26/2016
  • Waiver of solvency certificate requirement under  circular 24/2016
  • Waiver of security for obtaining extension in warehousing period under  circular 21/2016
  • Waiver of security required for warehousing of sensitive goods under  circular 21/2016

Custodians or Terminal Operators

  • Waiver of bank Guarantee
  • Extension of approval for custodians under regulation 10 (2) of the 'Handling of cargo in Customs Area Regulation 2009' for period of 10 years.

 

For more details mail us on : info@ikargos.com  and  certification@ikargos.com   

In a hurry to get the AEO certificationFill up this form  , or click here  or call Kapish at +91-9971770603 +91-8802601212

 

For more on AEO read our other BLOGS:  

WHAT IS AEO?  

LIST OF DOCUMENTS    

 FAQ's 

AUTO - RENEWAL FOR TIER 1 AEO LICENSE