‘AEO is Authorized Economic Operator ‘program under World Customs Organization (WCO) to create an international trade in Safe and Secured framework. The program aims to enhance international supply chain security and facilitate movement of legitimate goods.
Indian Customs issues the AEO certificate to Importers, Exporters and Logistics Operators who are fulfilling the criteria set by Indian Customs.
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 Program.
AEO program comprises of three tiers AEO Status for Exporters and Importers. The three tiers are AEO T1, AEO T2, AEO T3, where AEO T3 is the highest level of accreditation.
AEO eligibility criteria
Benefits for AEO clients Tier basis
Status Holders |
T-1 |
T-2 |
T-3 |
Reduction on Bank Guarantee | 50% reduction | 75% reduction | 100% reduction |
Deferred Payment of Duty (Bio- Monthly) | NO | YES | YES |
Self-Sealing Allowed scrutiny of documents by custom officers would be waived | NO | YES | YES |
Expedite Refund of IGST | NO | 45 Days | 30Days |
Faster disbursal of drawback within 72 hours post submission of Export General Manifest | NO | YES | YES |
International reorganization with countries India has entered MRA | NO | YES | YES |
Eligible for Advance Authorisation under Self-Ratification Scheme Para 4.06 FTP | YES | YES | YES |
Type of Certificate | Applicability | Timelines for Issuance | Validity | Renewal Submission before lapse of Validity |
AEO-T1 | Verified on the basis of document submission only. | 30 Days | 3 Years | 30 Days |
AEO-T2 | In Addition to document & onsite verification is also done. | 120 Days | 3 Years | 60 Days |
AEO-T3 | Applicant must have continuously enjoyed the status of AEO-T2 for at-least a period of 2 years preceding the date of application for grant of AEO-T3 status. | 180 Days | 5 Years | 90 Days |