Let’s start to work together
AEO REGISTRATION
WHO CAN APPLY?
Anyone involved in the international supply chain
- Importers
- Exporters
- Warehouse keepers
- Manufacturers
- Freight forwarders
- Customs agents
- Carriers
If you currently use any of the customs procedures listed below, you’ll need to apply for the new AEO certification:-
- CFSP (Common Foreign and Security Policy)
- Bonded Warehousing
- IP (Intellectual Property)
- OPR (Outward Processing Relief)
- PCC (Processing under customs Control)
ELIGIBILITY
Any legal entity that undertakes Customs related work can apply for the AEO Programme if they fulfil the following conditions:
- Minimum 25 Import or Export document in last Financial Year.
- Business activity for last 3 Financial Year (This condition can be waived of by the AEO Programme Manager).
- Financially Solvent for the last 3 Financial Years.
- The applicant must not be issued a Show Cause Notice involving ‘fraud, forgery, outright smuggling, clandestine removal of excisable goods or cases where Service Tax has been collected from customers but not deposited to the Government’ during last 3 Financial Years.
BENEFITS OF AOE
- Faster clearance of import or export goods
- DPD (Direct Port Delivery) facility for Imported goods from wharf to warehouse and DPE (Direct Port Entry) facility for Export goods from factory to wharf shall greatly reduce the dwell time and cost saving.
- AEO operator can pay taxes comfortably as compared to regular importer. Regular importer has to pay it within 2 days, whereas AEO is legally allowed to defer duty payment for as many as 15 days.
- Drawback and Refunds shall be paid faster- about 50% or 33% time faster, as compared to regular importers/exporters
- PCA (Post Clearance Audit) Audit frequency shall be much lesser than regular cases. In some category, as less as once in 3 years
- AEO need not enclose documents in some cases and in other category, self-certified documents shall be accepted by department and thus, ease of doing business shall be ensured.
- Facility for faster scanning shall be given.
- Extra space may be notified for AEO in port for faster storage and clearance.
- MRP affixation shall be allowed.
CATEGORIES OF AOE
AEO status | Applicability
| Validity |
AEO-T1 | Granted only to an importer or to an exporter without physical verification of places/premises. | 3 Year |
AEO-T2 | Granted only to an importer or to an exporter after physical verification of premises/places. | 3 Year |
AEO-T3 | Granted to (i) an importer or to an exporter who continuously enjoyed the status of AEO-T2 for a period of two years preceding the date of application or (ii) The importer/exporter holding AEO-T2 certificate, and its other business partners namely importers or exporters, Logistics service providers, Custodians/Terminal operators, Customs Brokers and Warehouse operators are holders of AEO-T2or AEO-LO certificate or any other equivalent AEO certificate granted by a foreign Customs. | 5Year |
AEO-LO | Granted to economic operators other than importers and exporters, (e.g. Logistics Providers, Custodians or Terminal Operators, Customs Brokers, Warehouse Operators) after physical verification of premises/places. | 5 Year |
FAQs
AEO Means Authorised Economic Operator Scheme.
Importer, Exporters, Logistic Operators, Agent, Cargo Handlers, Warehouse keepers, terminal operators, etc.
To get number of benefits from Government of India like cash benefit worth crores of rupees and faster clearance of goods and more favours from government.
To get status of internationally approved company.
No difficult condition is to be fulfilled. Main condition is that no case of fraud, evasion of duty, etc should be booked against the party. Genuine parties are always welcome. And this Government scheme indicates that AEO parties must have robust internal checks and balances for security of goods, data, records security, professional grade management control and supervision mechanisms, etc so that fraud does not take place.