Embark on a hassle-free trade journey with CCC, your trusted customs consultant. We excel in navigating schemes like the Authorized Economic Operator Programme (AEO) to propel your business forward. We provide end to end support in securing certifications under the Authorized AEO Programme so as to enable business entities engaged in international trade to enjoy various customs and duty benefits. Avail perks like deferred duty payments and swift refunds, ensuring your import and export operations glide smoothly.
Authorized Economic Operator (AEO) Programme
What are the different tiers of AEO certification?
AEO offers three tiers of certification for importers and exporters: AEO-T1, AEO-T2, and AEO-T3, each providing progressively greater benefits.
AEO-T1 Certification
AEO-T1 is the entry-level certification, granted to importers and exporters who meet specific compliance criteria. Benefits include:
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Simplified Customs Procedures: Faster clearance and reduced documentation requirements.
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Priority Processing: Shorter cargo release times and 24/7 clearance facilities.
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Direct Port Delivery (DPD): Access to DPD for imports, facilitating just-in-time inventory management.
AEO-T2 Certification
Building upon AEO-T1, AEO-T2 offers additional advantages:
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Deferred Payment of Duties: Allows delinking duty payment from customs clearance, enabling the principle of 'Clear First-Pay Later'.
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Reduced Audits: Lower frequency of physical and documentary audits by customs authorities.
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Client Relationship Manager: Appointment of a dedicated manager to address and expedite customs-related concerns
AEO-T3 Certification
AEO-T3 represents the highest level of accreditation, offering:
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Expedited Clearance: Immediate customs clearance for low-risk consignments.
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Inspection Exemptions: Waivers for routine inspections and examinations.
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Enhanced Trade Support: Dedicated customs relationship managers and faster issue resolution.
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International Recognition: Higher acceptance across trade partners globally, facilitating smoother international operations.
AEO is a voluntary programme for any business entity engaged in international trade enabling them to participate in global trade in compliance with supply chain standards as mandated by the World
Customs Organization (WCO). It is a three-tier programme for importers and exporters viz. AEO-T1, AEO-T2 and AEO-T3.
What is meant by AEO?
The AEO certificate is an important document that enables business entities to reap the benefits of the AEO scheme such as: (a) Deferred duty payment; (b) Direct port deliveries for import and export; (c) Fast tracking of refunds and drawbacks; (d) Fast tracking of adjudications; (e) Reduction / waiver of bank guarantee.
In India, the AEO (Authorized Economic Operator) certificate is issued by the Central Board of Indirect Taxes and Customs (CBIC), which is a part of the Ministry of Finance, Government of India.
Why is AEO certificate required and who issues the AEO certificate?
Anyone involved in the international supply chain that undertakes customs related activity in India can apply for AEO status irrespective of the size of the business. These may include exporters, importers, logistic providers, custom house agents, warehouse owners, authorized couriers, port operators etc.
Who is eligible for the AEO certificate?
The Authorised Economic Operator (AEO) program helps Customs administrations identify trusted, compliant and reliable businesses and offer them streamlined customs processing. It enables Customs to concentrate efforts on higher-risk businesses, improving control and security across international trade. This programme not only certifies business to enhances security but to also provide rewards to reliable operators and businesses with benefits like faster clearances and reduced inspections.
What is Authorised Economic Operator (AEO) Programme?
Any business entity that is part of the international supply chain; involved in the cross- border movement of goods and required to fulfill obligations under the Customs law in India, only can apply for AEO status. These may include exporters, importers, logistic providers (e.g. carriers, airlines, freight forwarders, etc.), Custodians or Terminal Operators, Customs House Agents and Warehouse Owners, Port operators, authorized couriers, Stevedores etc. The list is not exhaustive.
Who can apply for AEO status?
The eligibility criteria for each tier of AEO is different. To know about the eligibility of each tier read our blog on AEO.
What is the eligibility criteria for a business entity to apply for Indian AEO status?
The AEO scheme is entirely optional. Choosing to apply for AEO status is a commercial call, based on a company’s role in the supply chain and its interest in the benefits that come with certification.
Is it mandatory for businesses in India to get certified under the AEO Programme?
The AEO program for importers and exporters is structured in three tier certifications—AEO-T1, AEO-T2, and AEO-T3, each offering progressively greater benefits and requiring higher levels of compliance. Additionally, there is a single-tier AEO certification, AEO-LO, specifically designed for logistics providers, custodians or terminal operators, customs brokers, and warehouse operators.
How is the AEO Programme structured?
The validity of AEO certificate is three years for AEO-T1 and AEO-T2, and five years for AEO-T3 and AEO-LO.
What is the validity period for the AEO certifications?
There are many benefits for all three categories of AEOs- T1, T2, T3 and LOs.
Some of the major benefits are listed below: a) Recognition worldwide as safe, secure and compliant business partners in international trade and get trade facilitation by a foreign Customs administration with whom India enters into a Mutual Recognition Agreement/Arrangement; b) Facility of Direct Port Delivery (DPD) of their import Containers and/ or Direct Port Entry (DPE) of their Export Containers; c) Waiver of full or part of the Bank Guarantee requirements, Waiver of Merchant overtime fees; d) Deferred payment of duties; e) Waiver from transactional PCA. Instead Onsite PCA has been provided, the selection of the same shall be based on risk assessment of AEOs; f) Waiver of solvency certification for Customs Brokers; g) A lower risk score in risk analysis systems when profiling; h) Faster disbursal of drawback amount i) Fast tracking of refunds and adjudications.
What are the benefits of AEO status?
As per the Indian AEO requirements, the applicant should have business activities for at least three financial years preceding the financial year of date of application. However, in exceptional cases, on the basis of physical verification of internal controls of a newly established business entity, the AEO Programme Manager can consider it for certification.
Whether a newly established company can apply for AEO Status?
To know more about the AEO programme read out blogs on AEO or reach out to us.
Reach out to us.
Contact us today to learn more about what we can offer.
Reach out to us.
Contact us today to learn more about what we can offer.