AEO-Importers and Exporters

What is Authorised Economic Operator (AEO) program ?

Initiated by the Central Board of Indirect Taxes and Customs (Department of Revenue, Ministry of Finance vide Circular No.33/2016), the Authorised Economic Operator (AEO) program 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 supply chain.

Types of AEOs

Tier 1 accreditation

Authorised Economic Operator (AEO)

Saves CFS and other charges upto Rs.15,000

With DPD/DPE facility, there is no need for the container to be taken to CFS. Thus save CFS and other allied charges.

Saves Rs.5,000 to Rs.10,000/- per container

Direct payment of THC to terminals instead of routing it through shipping lines (a stay order from the courts for this benefit is in place and hence is not immediately available).

Facilitation benefits

High Level of facilitation.

50% reduction in Bank Guarantee

Reduction in Bank Guarantee.

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Tier 2 accreditation

Authorised Economic Operator (AEO)

Saves CFS and other charges upto Rs.15,000

With DPD/DPE facility, there is no need for the container to be taken to CFS. Thus save CFS and other allied charges.

Saves Rs.5,000 to Rs.10,000/- per container

Direct payment of THC to terminals instead of routing it through shipping lines (a stay order from the courts for this benefit is in place and hence is not immediately available).

High level of facilitation

Facilitation benefits

75% reduction in Bank Guarantee

Reduction on Bank Guarantee.

Deferred Payment of Duty

Deferred payment of duty i.e. duty need to be paid by 16th and 1st day of the subsequent month.

MRP stickers

Facility to paste MRP stickers in their premises.

Refund/rebate of customs duty in 45 days

Refund/rebate of customs/central excise and service tax in 45 days on submission of all documents.

Drawback with 72 hours

Faster disbursal of drawback within 72 hours of EGM submission.

Trade facilitation by foreign Customs

Trade facilitation by foreign Customs administration with whom India enters into a Mutual Recognition Agreement (MRA).

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Tier 3 accreditation

Authorised Economic Operator (AEO)

Saves CFS and other charges upto Rs.15,000

With DPD/DPE facility, there is no need for the container to be taken to CFS. Thus save CFS and other allied charges.

Saves Rs.5,000 to Rs.10,000/- per container

Direct payment of THC to terminals instead of routing it through shipping lines (a stay order from the courts for this benefit is in place and hence is not immediately available).

Facilitation benefits

High Level of facilitation.

100% reduction in Bank Guarantee

Reduction in Bank Guarantee.

Deferred Payment of Duty

Deferred payment of duty i.e. duty need to be paid by 16th and 1st day of the subsequent month

MRP stickers

Facility to paste MRP stickers in their premises

No insistence on original documents by assessing officer

Reliance by assessing/examining customs officer on self-certified copies without insisting on original documents

Refund/rebate of customs duty in 30 days

Refund/rebate of customs/central excise and service tax in 30 days on submission of all documents

Trade facilitation by foreign Customs

Trade facilitation by foreign Customs administration with whom India enters into a Mutual Recognition Agreement (MRA)

Drawback with 72 hours

Faster disbursal of drawback within 72 hours of EGM submission

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Eligibility criteria for AEO Program

  • Should be an importer or an exporter based in India.
  • Applicant should have business activities for at least three financial years preceding the date of the application (this condition not mandatory for applicant of Authorised Economic Operator (AEO)-T1 status).
  • 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.
  • The ratio of duty demanded to total duty paid/drawback claimed by the applicant during the last three financial years is not more than 10%. The ratio is calculated by dividing duty amount involved in SCN issued under the Customs Act divided by total duty paid & drawback claimed during the last three financial years. For example, the amount involved in SCN/disputed demand (includes demand of duty and denial of drawback) is Rs.500/- and total duty paid is Rs.20,000/-, drawback claimed is Rs. 5,000/-, the ratio shall be 500/(20000+5000)*100 = 2%.

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
Enroll for AEO Program

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