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AEO Certification

WHAT IS AEO CERTIFICATION (AUTHORISED ECONOMIC OPERATOR)

​The Authorised Economic Operator Programme (or AEO Programme), which is run by the Customs Department (CBEC), is a voluntary programme that applies to all business entities in India that deal in exports and imports.  AEO certification is granted to entities who adhere to the predetermined compliance standards of the AEO Programme. The Indian AEO programme primarily focuses on facilitating commerce for importers and exporters, for whom AEO certification in Customs yields significant financial benefits. The AEO programme seeks to provide tangible benefits in the form of faster Customs Clearances and simplified Customs procedures to those business entities who offer a high degree of security guarantees in respect of their role in the supply chain. Holders of this certificate are eligible for privileges, benefits, exemptions, and relaxations on account of import and export under the AEO trade facilitation system, which was created to make doing business easier in light of worldwide development.

The SAFE Framework of Standards to Secure and Facilitate Global Trade, developed by the World Customs Organization (WCO), includes what is known as AEO certification in India. Numerous other nations also have operating AEO programmes, others are still in the planning stages, and still others have alternative customs-compliance initiatives that are comparable to or almost identical to AEO certification in India's Customs in general. Many of the latter come close to what AEO in customs is, but they are not really AEO certifications, which signify that they were properly approved under an AEO programme. In international trade, the official significance of the AEO certification is well known.

AEO CERTIFICATION BENEFITS

  • Facilitation such as deferred payment of duty, reduced examination and priority treatment, 24X7 clearances, delivery of goods directly from wharf to warehouse, minimal intervention for compliant trade, reduction or waiver in Bank Guarantees, and higher facilitation than Accredited Client Programme, among other AEO Certification Benefits.

  • AEO certification ensues benefits like shorter cargo release time, Direct Port Delivery (DPD) / or Direct Port Entry (DPE), ID to authorized personnel, Separate space earmarked in Custodian’s premises, no Merchant Overtime Fee (MOT) charges need to be paid, etc.
     

  • Provides businesses with an internationally recognized security standard, promotes an AEO certified entity as a “secure” and “reliable” trade partner.

  • Incentivizes AEO entities with defined benefits that translate into savings in time and costs thereby enhancing business competitiveness.

  • AEO status holder shall be issued advance authorization on self certification and declaration basis without ratification by the Norms Committee.

  • These AEO certification benefits therefore play an important role in the success of the trading companies participating in the Indian AEO programme.

  • There are three tiers of AEO certification, AEO -T1, AEO-T2 and AEO-T3, under the Indian AEO programme each with its own level of  AEO certification benefits.

WHO IS ENTITLED FOR AEO CERTIFICATION?

Regardless of the size of the company, anyone working in the global supply chain who engages in Customs-related activity in India is eligible to apply for AEO status. Exporters, importers, logistic service providers (such as carriers, airlines, freight forwarders, etc.), custodians or terminal operators, customs house agents, and warehouse owners may all fall under this category. Others who might be eligible include stevedores, approved couriers, and port operators. This list is not all-inclusive.

 

AEO FOR SME ENTERPRISES

Small and medium-sized enterprises are also eligible for AEO if they submitted 25 papers, such as shipping bills or bills of entry, in the previous fiscal year.
 

GETTING CERTIFIED UNDER THE INDIAN AEO PROGRAMME WITH YKG CORP

Our indirect tax advisers at YKG Corp. are experienced and well-versed in a variety of facets of AEO certification in India, working with the relevant departments to fulfil our clients' Tier 1, Tier 2, or Tier 3 AEO requirements with the following AEO Program services:

  • Applying for grant of AEO status

  • Helping self-assess AEO certification readiness in terms of CBIC requirements

  • Representing in the meeting between entity and AEO specialist

  • Clearing deficiency notes, if any received from the AEO team

  • Removing shortcomings on specific issues

Anita Mishra,

Co-Fonder and Director

"Co-Fonder and Director, STGA Consultants Anylyz.com is unarguably the best place for any tax-related matter that you might have. I used their service during the peak tax season and was amazingly surprised by the fast responses and turnaround time. Since then I have recommended the service to several friends and family members who have been nothing but delighted by the service."

Keshav Sharma,

Director, Dewans Coffee

“We used Anylyz.com to register our Pvt. Ltd. company over the last couple of months. It was not a straightforward process but they made it a smooth ride for us. Their executives were responsive and communicated everything in a timely manner. Highly recommended service for new businesses.”

Anand Aggarwal,

Director, HPT & Co. 

“There were tax demands emanating assessment tax case. As a growing company, you don’t need a gyan company to manage your finance/accounts/taxes, you need someone who knows HOW TO GET THINGS DONE. Anylyz.Com is a problem-SOLVING firm, best for any growing company.”

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