AEO Certification in India

AEO Certification in India
16 Oct

The Authorised Economic Operator programmed was developed by the World Customs Organisation and aims to ease the customs related procedures for businesses. It also allows for easy and faster customs clearances, thus, streamlining the customs process. Here’s everything you need to know about the AEO certification in India.

Types of AEO Certification in India

The AEO certificate has been divided into four different categories based on the eligibility of the businesses and nature of operations being performed. Following are the different types of AEO in India that you can apply for:

  • AEO-T1: This certificate should be granted to the exporters and importers who fulfil the specified criteria.
  • AEO-T2: This certificate is also granted to the exporters and importers who fulfil the specified criteria.
  • AEO-T3: This certification is available for those businesses that have utilized the AEO-T2 status for at least 2 years before applying for the AEO-T3 certification
  • AEO-LO: This certification is available for persons engaged in the international supply chain other than exporters and importers. These include custodians, logistics providers, customs brokers, terminal operators, warehouse operators etc.

Benefits of AEO Certificate

AEO certificate confers a lot of benefits to the registered businesses in terms of ease in customs related procedures and recognition amongst the customs authorities. Following are the key AEO certificate benefits:

  • It allows for Direct Port Delivery of imports allowing the manufacturers and importers to manage their inventory on Just in Time basis
  • It also allows for Direct Port Entry with the aim of benefiting the exporters
  • Fast track adjudication of the refunds and other proceedings
  • Delinking customs clearances with duty payments, thereby allowing for deferred payment of duties
  • It places a special focus on Micro, Small and Medium Enterprises i.e., those handling up to 25 import or export documents annually.
  • Benefit of Mutual Recognition Agreements entered into with different customs administrations.
  • Self-certified copies of PFA/FTA origin related documents and other certificates for clearances are acceptable
  • Faster approval and disbursal of the duty drawback amount
  • Filing of paperless declarations without attaching supporting documents
  • On site examination and inspections on a request basis
  • Recognition by the government agencies of foreign countries and other stakeholders

Who Can Apply for AEO Certificate in India?

The following are the different persons who can apply for AEO registration in India:

  • Exporters
  • Importers
  • Terminal Operators
  • Custodians
  • Logistics Providers
  • Port Operators
  • Warehouse Operators etc.

It shall be noted that businesses that are not involved in the customs related work or activities cannot apply for AEO status. Further, banks, consultants, insurance companies etc. are not eligible for AEO registration in India.

Who is Eligible for AEO Certificate in India?

In order to apply for AEO certification, you need to fulfil the following AEO registration eligibility criteria:

  • The applicant entity should be established in India
  • The applicant entity should be involved in the customs related activities
  • The business should have handled at least 25 customs documents. This usually includes bills of entry, shipping bills etc.
  • The business should be engaged in the customs related activities at least for a period of 3 financial years
  • The business should not be issued a show cause notice during the last 3 financial years for being involved in fraud, forgery, outright smuggling, clandestine removal of excisable goods or where the applicant has collected the service tax but not deposited it with the government
  • The business should be financially solvent during the last 3 financial years before the date of application for AEO certification
  • The business should have appropriate internal controls and measures to ensure the safety and security of the supply chain and business
  • The business should have an appropriate system in place to manage the transport and commercial records

AEO Registration Process

Following is the detailed process for AEO registration in India:

  • Register yourself on the AEO portal if you are filing the application for the first time. In other cases, directly login using your login credentials
  • After submitting the details to register on the portal, you will receive the username and password in your mail for further login
  • Login using the credentials and you will be directed to the application dashboard
  • On the dashboard, you will see a message ‘Application can only be filed after the completion of verification’ which shall be done by the AEO authorities
  • Once the registration verification is complete, you will see three options i.e., T1 Application, T2 Application and T3 Application
  • Select the type of AEO application you wish to file and start filling in the application form.
  • Upload all the relevant documents and annexures.
  • In case there is any shortfall or deficiency in the application, you will receive an email from the department on your registered mail ID. You need to respond to the shortfall or deficiency and upload any additional documents if required.
  • The concerned official will decide on the approval or rejection of the application and the same shall be intimated to you through mail.

List of Documents Required for AEO Registration in India

Once you furnish all the relevant information in the AEO application, you need to upload certain documents, based on the application. The following are the list of documents required for AEO registration in India:

  • PAN card and Aadhaar card of the applicant
  • GST registration certificate
  • IEC certificate
  • Certification of incorporation or constitution of the entity
  • Audit report for the last 3 years
  • Declaration on the letter head of the entity
  • List of items imported along with the HSN code
  • List of items exported along with the HSN code
  • Annexures as may be applicable based on the type of registration
  • Import-export process map
  • Site plan for your registered and branch address
  • Certificate of solvency along with the declaration and undertaking
  • Any other document as may be required

Also, Check "Licenses to start an import export business in India"

How Exim Advisory Can Help in Getting AEO Certification?

AEO certification in India is highly beneficial for businesses in terms of streamlined customs procedures and being a compliant business. Therefore, it is important to obtain AEO certificate if you are an importer or exporter or engaged in the international supply chain. Here’s how the Exim Advisory can help you in this regard:

  • Determining the type of AEO applicable to your business based on the nature of operations and activities being carried out
  • Analyzing your entity’s existing level of security standards to assist you in gaining AEO certificate
  • Guidance in preparation of the Standard Operating Procedures (SOPs) requisite for the AEO registration
  • Gathering of all the documents and information required to file AEO in India
  • Registration on the AEO portal and assistance for verification, if required
  • Preparation and filing of the application for AEO certification
  • Necessary support and assistance during the physical verification process by the AEO authorities
  • Liaising with the AEO authorities and resolution of any queries raised till the AEO certificate is obtained
  • Assistance in handling post registration compliances after the grant of AEO certification
  • Timely renewal of AEO certification (if applicable) to ensure uninterrupted benefits

Frequently Asked Questions

Q: What is the full form of AEO?

A: The full form of AEO is Authorised Economic Operator (AEO). It is the certification granted to businesses engaged in customs related work and international supply chain activities.

Q: Is AEO license compulsory?

A: No. AEO certification is an optional scheme. However, obtaining AEO certification can help businesses in multiple ways.

Q: Whether Direct Port Entry and Direct Port Delivery benefits are available for all the AEO registration entities?

A: Yes. All the entities who have obtained registration under AEO-T1, AEO-T2 or AEO-T3 are eligible for availing of the benefits of Direct Port Entry or Direct Port Delivery.

Q: Who can apply for AEO certification?

A: The AEO status can be obtained by the importers, exporters and other businesses engaged in international supply chain activities like custodians, terminal operators, port operators, logistics providers, warehouse operators etc.

Q: What are the benefits of AEO certification?

A: The AEO certification brings a lot of benefits for businesses like faster clearance of cargo, direct port entry, direct port delivery, deferred payment of duties etc.