In news
Online filing of Authorised Economic Operators (AEO) T2 and T3 applications has been inaugurated by the chairman of Central Board of Indirect Taxes & Customs(CBIC).
More information
- The AEO web application is accessible at URL www.aeoindia.gov.in.
- The new version (V 2.0) of the web application is designed to ensure continuous real-time and digital monitoring of physically filed AEO T2 and AEO T3 applications for timely intervention and expedience.
- The AEO application processing for AEO T1 on its web-based portal has been functional since December 2018.
- The CBIC Board has launched a new version (V2.0) for on-boarding of AEO T2 and AEO T3 applicants for online filing, real-time monitoring, and digital certification.
Who is an Authorised Economic Operator (AEO)?
According to the World Customs Organization (WCO), an authorized economic operator (AEO) is a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards.
Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors
AEO-Eligibility Criteria for an entity
- Handled 25 documents (s/B & Bills of Entry) in the last Financial Year.
- Should Undertake Customs Related Work.
- Be a part of the international supply chain.
- AEO can only be given to legal entity and not group company.
- Have had business activity for three Financial Years (can be waived in deserving cases).
About 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.
- It was started in 2011.
- 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 the programme, an entity engaged in international trade is approved by Customs as compliant with supply chain security standards and granted AEO status & certain benefits.
- India’s AEO Programme is in sync with the commitments made under Article 7.7 of WTO TFA.
- It was designed to set standards to secure and to facilitate the ever-growing flow of goods in international trade.
- 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.
- Today, the programme has a membership of nearly 5,000 AEO entities.
- Recently, CBIC introduced the “Liberalised MSME AEO Package” for Micro Small and Medium Enterprises (MSMEs).
- In order to attract MSMEs to become Authorised Economic Operators (AEOs) and avail the various benefits, the CBIC has relaxed the compliance criteria provided the MSMEs have a valid certificate from their line-Ministry.
