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Authorized Economic Operator (AEO)

Author: Kireeti Consultants
by Kireeti Consultants
Posted: Sep 11, 2020

Authorized Economic Operator (AEO) is a program initiated by World Customs Organization (WCO) to secure and facilitate Global trade under SAFE framework. The program aims to enhance international supply chain security and facilitate movement of legitimate goods. Since its inception in 2005 many countries have taken initiative towards implementing this program in order to enhance "Ease of Doing Business" across the globe

Indian Govt. also has taken steps towards implementing this program in India with the following objectives :-

  1. Achieving "under 50" rank of World Bank’s "Easy of Doing Business" Report
  2. To make India a Manufacturing and Exporting Power House
  3. By Easing customs clearances and procedures

4. While maintaining high security standards in International Supply Chain.

Eligible Organizations for AEO program :- a.) Importers b.)Exporters c.)Logistics Providers d.)Terminal Operators e.)Custom Brokers/CHA f.)Warehouse Operators

AEO is a voluntary program for principle stakeholders who are a part of the International supply chain.

By becoming and AEO you will be recognized as "Secure Trader" and reliable trading partner by the Customs Dept. and other stake holders in the International business environment. Therefore, you will be eligible for the below benefits :-

  • Direct Port Delivery of import/export container
  • 24/7 clearances on request at all sea ports and airports
  • Shorter cargo release time — assessment will be done on priority
  • Self-certified copies of FTA/PTA origin related or any other certificates required for clearance will be accepted
  • No Merchant Overtime Fee (MOT)
  • Deferred payment of Duty
  • Self-declaration of SION in cases where SION is not notified
  • Bills of Entry /Shipping Bills will be processed on priority
  • Disbursal of
drawback amount within 72 hours of EGM submission

  • Expedite refund of IGST and rebate within 45 days
  • Higher priority for investigations and dispute resolutions if any
  • Appointed Client Relationship Manager at the level of Deputy / Asst. Commissioner
  • Seal verification/scrutiny of documents by Custom officers will be waived
  • Request based on-site inspection / examination
  • Paperless declarations with no supporting documents in physical form
  • Access to your consolidated import / export data
  • Email notifications regarding arrival/ departure of the vessel carrying their consignments
  • Separate space earmarked in Custodian’s premises
  • Reduction on Bank Guarantee (upto 100%)
  • ID cards to authorized personnel for hassle free entry to Custom Houses, CFSs and ICDs
  • Mutual recognition agreements with Customs Authorities of other countries
  • Recognition by partner Govt. Agencies and other stake holders as part of the AEO program
  • Facility of Execution of running bond
  • Exemption from permission in case of transit of goods.
About the Author

Kireeti Consultants Services related Dgft Services, Customs Services and Gst Filings, CA & CS Services as well as Industrial Subsidies from various Government Departments.

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Author: Kireeti Consultants

Kireeti Consultants

Member since: Sep 08, 2020
Published articles: 2

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