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Authorized Economic Operator (AEO) Programme & Advantages
 
 

CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle, 4th Floor, 7 Cooperage Road, Mumbai - 400 001.India.

Tel : +91 22 22021288 / * Fax : +91 22 22026684

* E-mail : info@chemexcil.gov.in Web : https://chemexcil.in

EPC/LIC/CBEC/ AEO    

7th Feb 2018

          

ALL MEMBERS OF THE COUNCIL

 

Authorized Economic Operator (AEO) Programme & Advantages

 

 

 

Dear Members,

 

As you might be aware, Authorized Economic Operator (AEO) 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 role in the supply chain.

 

The AEO Programme provides businesses with an internationally recognized quality mark which will indicate their secure role in the international supply chain and that their Customs procedures are efficient and compliant.  An entity with an AEO status can, therefore, be considered a ‘secure’ trader and a reliable trading partner.

 

For the economic operators other than importers and the exporters, AEO programme offers one tier of certification (i.e. AEO-LO) whereas for the importers and the exporters, there will be three tiers of certification (i.e. AEOT1, AEO-T2 and AEO-T3).

 

Eligibility conditions and criteria laid are  down under paragraph 3 of Board Circular No. 33/2016-Cus., dated 22-7-2016 (as modified vide and Circular No. 3/2018- Customs, dated January 17, 2018) ((available at: http://www.cbec.gov.in/Customs-Circulars-Instructions).  The council  has also recently informed the members about the amendments vide circular dated 31/01/2018.

 

Through this initiative, Indian Customs extends to its AEO members with certain benefits, including:

  • Inclusion of Direct Port Delivery of imports to ensure just-in-time inventory management by manufacturers – clearance from wharf to warehouse for AEO T1, T2 and T3.
  •  
  •  Inclusion of Direct Port Entry for factory stuffed containers meant for export by AEOs for AEO T1, T2 AND T3.
  •  
  • Provision of Deferred Payment of duties – delinking duty payment and Customs clearance for AEO T2 and AEO T3
  •  
  • Benefits of Mutual Recognition Agreements with other Customs Administrations for AEO T2 and AEO T3.
  •  
  • Faster disbursal of drawback amount
  •  
  • Fast tracking of refunds and adjudications
  •  
  • Extension of facilitation to exports in addition to imports depending on the tier of certification.
  •  
  • Self-certified copies of FTA / PTA origin related or any other certificates required for clearance would be accepted
  •  
  • Request based on-site inspection /examination
  • Paperless declarations with no supporting documents
  •  
  • Recognition by Partner Government Agencies and other Stakeholders as part of this programme.
  •  
  • In accordance with the conditions laid down in Para 4.07A of FTP 2015-2020, where there is no SION/valid Ad-hoc Norms for an export product and where SION has been notified but exporter intends to use additional inputs in the manufacturing process, eligible exporter, who is an AEO, can apply for an Advance Authorisation under this scheme on self-declaration and self ratification basis”

 

In view of the above, all the importers, especially those also availing DPD facility,  may apply for AEO certification so as to avail various significant benefits available to AEOs under the scheme, which also includes higher facilitation of Bills of Entry under RMS.

 

The application for AEO  certification may be submitted to the relevant Customs Houses of your Jurisdiction. The Customs Houses nominate their Client Relationship Manager (CRM) for  AEO entities in the jurisdiction.

In case of JNCH,  application may be Addressed to the Additional Commissioner of Customs, Chief Commissioner’s Office (CCO), Jawaharlal Nehru Custom House, Nhava Sheva, Tal:- Uran, Dist: Raigad, Pin – 400 707) with copy to AEO Programme Manager, Directorate of International Customs or in case of any doubt, to the AEO Programme Manager, Directorate of International Customs, 10th Floor, Tower II, Jeevan Bharti Building, Connaught Place, New Delhi – 110001 as per the procedure prescribed under CBEC Circular 33/2016 (as modified vide and Circular No. 3/2018- Customs, dated January 17, 2018) (available at: http://www.cbec.gov.in/Customs-Circulars-Instructions)

 

Members are requested to take note  and may do the  needful for trade facilitation.  Additional information (CRM’s, Fact Sheet, existing list of entities etc)  and the original circulars pertaining to AEO programme are available for download using below links:

http://www.cbec.gov.in/htdocs-cbec/home_links/india-aeo-prgm

 

Circular No.

English

Date of issue

Subject

03/2018

View(368 KB)

17-01-2018

Amendment in the AEO Programme Circular No. 33/2016 dated 22/7/2016

33/2016

View(246 KB)

22-07-2016

Review of entity based facilitation programmes viz. Accredited Client Programme (ACP) and Authorized Economic Operator (AEO) programme — Revised Guidelines.

 

Thanking you,


Yours faithfully,

 

S.G BHARADI
EXECUTIVE DIRECTOR

CHEMEXCIL

 

 

 

 

 

 

 

 

 

 

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