IAS Gyan

Daily News Analysis

AEO Programme

8th July, 2021 Economy
  • Launch of online filing of application for Authorised Economic Operators (AEO T2 and AEO T3).

Authorised Economic Operator (AEO) Programme:

  • AEO is a programme under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade.
  • The programme aims to enhance international supply chain security and facilitate movement of legitimate goods.
  • AEO encompasses various players in the international supply chain.
  • Under this programme, an entity engaged in international trade is approved by Customs as compliant with supply chain security standards and granted AEO status & certain benefits.
  • AEO is a voluntary compliance programme.
  • It enables Indian Customs to enhance and streamline cargo security through close cooperation with the principle stakeholders of the international supply chain viz. importers, exporters, logistics providers, custodians or terminal operators, custom brokers and warehouse operators.
  • The programme is under the Directorate of International Customs, Central Board of Indirect Taxes & Customs (CBIC).

Structure of the programme:

  • It is a three-tier programme for importers and exporters i.e. AEO-T1, AEO-T2 and AEO-T3 in the increasing degree of benefits accorded and compliance requirements.
  • AEO LO certificates are also provided for entities other than importers and exporters such as warehouse operators and customs brokers.

AEO Eligibility:

  • Entity should be established in India.
  • Entity’s business should be customs-related.
  • Should have dealt with minimum 25 customs documents (either Bill of Entry or Shipping Bill) in the last fiscal year.
  • Business activity should be there for last 3 financial years preceding the financial year of date of application. However, for newly established businesses, the application can be considered after due verification.
  • The Indian AEO Programme was started in 2011 and currently has a membership of about 5000 AEO entities.