Authorized Economic Operator ( AEO )

September 27, 2024

Authorized Economic Operator ( AEO )

 

‘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

  • Minimum 25 Export shipment or Import consignments in last Financial Year
  • AEO can only be given to legal entity and not group company
  • Should have business activities for three Financial Years

 

Benefits for AEO clients Tier basis

 

 

                                                                                                    Status Holders

 

             T-1

 

              T-2

 

                 T-3

Reduction on Bank Guarantee50% reduction   75% reduction100% reduction
Deferred Payment of Duty (Bio- Monthly) NOYESYES
Self-Sealing Allowed scrutiny of documents by custom officers would be waivedNOYESYES
Expedite Refund of IGSTNO45 Days30Days
Faster disbursal of drawback within 72 hours post submission of Export General Manifest NOYESYES
International reorganization with countries India has entered MRANOYESYES
Eligible for Advance Authorisation under Self-Ratification Scheme Para 4.06 FTPYESYESYES

 

 

Type of Certificate                                                                                ApplicabilityTimelines for IssuanceValidityRenewal 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 Days3 Years  60 Days  
AEO-T3Applicant 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