AEO- Customs Brokers and Logistics Service Providers

Eligibility criteria for applicants of AEO-LO status

  • Should be based in India.
  • Applicant should have business activities for at least three financial years preceding the date of the application.
  • Applicant should have handled at least 25 documents (either Bill of Entries or Shipping Bill or both put together should be 25).
  • The applicant must not have been issued any Show Cause Notice involving fraud, forgery, clandestine removal of goods during the last three years.
  • No prosecution should have been launched against the applicant
  • The applicant must be financially solvent.
  • The net current assets and the net worth of the applicant during the last three financial years should be positive. In certain circumstances, firms having negative net currents and net worth may be considered if they show a declining trend.

Common benefits to all Authorised Economic Operator (AEO)-LO status holders

  • Importers and exporters who obtain Authorised Economic Operator (AEO)-T3 status can engage only with service providers who have Authorised Economic Operator (AEO)-LO status. Thus a customs broker (without Authorised Economic Operator (AEO)-LO status) cannot provide service to a client who has Authorised Economic Operator (AEO)-T3 status.Thus, it is not only imperative to have Authorised Economic Operator (AEO)-LO status, it is a must for your business.
  • All shipping lines, multi-national importers/exporters based outside India will engage only with Authorised Economic Operator (AEO)-LO status holders (should they want to have business in India).Thus we have an opportunity to be a part of international supply chain and thus grow our business.
  • One of the conditions for Custom Brokers applying for government tenders is to possess Authorised Economic Operator (AEO)-LO status.
  • Besides other benefits for Authorised Economic Operator (AEO)-LO status are.
Logistic Service Providers

(a) Waiver of bank Guarantee in case of trans-shipment of goods under Goods imported (Condition of Trans-shipment) Regulations, 1995.
(b) Facility of Execution of running bond.
(c) Exemption from permission on case to case basis in case of transit of goods. In case of international transshipped cargo (Foreign to Foreign), for the pre-sorted containers wherein Cargo does not require segregation, ramp to ramp or tail to tail transfer of cargo can be effected without Customs escorts.

Custodians or Terminal Operators

(a) Waiver of bank Guarantee under Handling of cargo in Customs Area Regulations 2009.
(b)Extension of approval for custodians under regulation 10(2) of the 'Handling of cargo in Customs Area Regulation 2009 'for period of 10 years.

Warehouse Operators

(a) Faster approval for new warehouses within 7 days of submission of complete documents
(b) Waiver of antecedent verification envisaged for grant of license for warehouse under circular 26/2016
(c) Waiver of solvency certificate requirement under circular 24/2016
(d) Waiver of security for obtaining extension in warehousing period under circular 21/2016
(e) Waiver of security required for warehousing of sensitive goods under circular 21/2016

Customs Brokers

(a) Waiver of Bank Guarantee to be furnished under regulation 8 of the CBLR, 2013.
(b) Extended validity (till validity of Authorised Economic Operator (AEO) status) of licenses granted under regulation 9 of the CBLR 2013. System Manager to incorporate date of validity of Authorised Economic Operator (AEO) from time to time in the System Directory
(c) Waiver from fee for renewal of license under sub regulation (2) of regulation 11 of CBLR,2013.

Join and be part of international supply chain

Authorised Economic Operator (AEO) program seeks to provide tangible benefits in the form of reduction of cost to Importers and Exporters and faster customs clearances
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