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The Central Board of Indirect Taxes and Customs (CBIC) hosted a two-day global India Authorised Economic Operator (AEO) programme in New Delhi in collaboration with the World Bank.

India Authorised Economic Operator (AEO) Programme

The programme was attended by representatives from 18 trade partner countries, the private sector, and international organizations.

The conference focused on India's AEO Programme journey, benefits for MSMEs, engagements with international participants, best practices, risk management, gender dimensions of trade facilitation, and supply chain resilience.

About Authorised Economic Operator (AEO) Programme

An AEO is a business entity that participates in the international movement of goods and is required to follow provisions of national customs law and be approved by or on behalf of the national administration to comply with the World Customs Organization (WCO).

The AEO Programme aims to secure and facilitate global trade by improving international supply chain security and facilitating the movement of legitimate goods.

The Programme promotes closer cooperation between the customs department and the trade industry.

India's AEO Programme

The India AEO programme is a voluntary programme introduced in 2011 by the Central Board of Indirect Taxes and Customs (CBIC).

The main objective is to secure and facilitate global trade by improving international supply chain security in collaboration with stakeholders such as importers, exporters, logistics providers, and customs brokers.

It offers benefits such as simplified customs procedures and faster customs clearances to businesses that provide a high level of supply chain security.

The WCO SAFE Framework of Standards serves as the foundation for India's AEO programme.

World Customs Organization (WCO)

The World Customs Organization (WCO) was established in 1952 and is the only intergovernmental organization dedicated solely to customs matters.

In 2005, the WCO adopted the SAFE Framework of Standards (WCO SAFE FoS) to protect the international supply chain. AEO is one of the three pillars that form the foundation of the WCO SAFE FoS.

It is headquartered in Brussels, Belgium.

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Authorised Economic Operator (AEO) Program

Source:

PIB

PRACTICE QUESTION

Q.Consider the following statements:

1. India had a trade surplus with the United States.

2. USA is the largest investor in India

Which of the above statements is/are correct?

A) 1 only

B) 2 only

C) Both 1 and 2

D) Neither 1 nor 2

Answer: A

Explanation:

Statement 1 is correct:

India maintains a trade surplus with the United States:

In 2023-24, India had a trade surplus of $36.74 billion with the US.

In 2022-23, India had a trade surplus of $28.30 billion with the US.

Statement 2 is incorrect:

Singapore is India's largest investor, with $11.77 billion in foreign direct investment (FDI) in the fiscal year 2023–2024. This accounts for about 24% of all FDI inflows into India. Mauritius is the second-largest investor, followed by the USA, Japan, and the Netherlands.