AUTHORIZED ECONOMIC OPERATOR (AEO)

Home AUTHORIZED ECONOMIC OPERATOR (AEO)

AUTHORIZED ECONOMIC OPERATOR SCHEME
(AEO)

CENTRAL AGENCY:  World Customs Organization (WCO)

REGULATORY FRAME WORK: Secure access for everyone (SAFE) frame work

AIM: To secure and facilitate legitimate global trade

OBJECTIVES: To provide business entities an international recognized certification.

                           To incentivize business entities

                            Secure supply chain from point of export to import

                            Enhanced border clearance privileges in MRA partner countries

PRINCIPLES: Voluntary compliance, partnership and Mutual recognition among customs administrations and the principal stakeholders of international supply chain.

AEO ACCREDITATION: AEO T3 ˃ AEO T2 ˃ AEO T1 for Exporters and Importers and AEO-LO for all other entities other than importers and exporters, accredited by custom zones spread across the country.

VALIDITY: 3years for AEO-T1 and AEO-T2 and 5years for AEO-T3 and AEO-LO

ELIGIBILITY: Any Business entity involved in International Supply Chain and fulfilling all the obligations under the customs law in India are eligible like Exporters, Importers, Logistic Service Providers, Customs House agents, Authorized couriers, Port operators, Ware house owners, Custodians or Terminal Operators etc.,

CRITERIA FOR GRANTING AEO STATUS:

  • • An entity should be established in India
  • • Business should involve customs related activities
  • • Should have dealt with minimum 25 customs documents in the preceding financial year.
  • • Should be active in business for past three financial years Except for few Exceptional cases where on Physical verification of internal controls, AEO Program Manager can Certify.

APPLICATION:

AEO T1: Online Mode since December 2018

AEO T2, T3, LO: Offline Mode

Documents Required:

  • • General compliance, Legal compliance
  • • Security plan
  • • Process Map
  • • Commercial and Transport Records
  • • Information / Declaration forms
  • • Site plan of Registered office and branch addresses mentioned in the IEC certificate issued by DGFT.
  • • Net worth and Net current asset from the audited balance sheet of last three years
  • • Safety and Security
  • • Business partner details in case of AEO T3.

AEO CERTIFICATE ISSUANCE TIME LIMIT:

AEO T1: within 30 days after Application

AEO T2, LO: Maximum up to 180days       

AEO CERTIFICATE SUSPENSION/ DOWNGRADE:

AEO certificate can be suspended by the AEO Program Manager
  • • If Non compliance with the Conditions is detected for AEO status
  • • If the Basic license as Business entity of an Applicant has been cancelled by that particular competent authority
AEO Status can be downgraded as AEO T3 to AEO T2 or T1 and AEO T2 to T1
  • • If any showcase notice issued in contravention of Customs, Central Excise, GST law or Suspended Status of AEO has been detected.

RE-APPLICATION:

AEO T1 and AEO T2 status holders can reapply for AEO status only after one year of revocation.

AEO T3 and LO status holders can reapply only after three years of revocation.

AEO entities in India as on 30/03/2025:

AEO-T1 3453
AEO-T2 1178
AEO-T3 206
AEO-LO 928
TOTAL 5765

AEO entities in India as on 30/03/2025:

AEO T1 AEO T2 AEO T3 AEO-LO
High facilitation Higher facilitation Highest facilitation Waiver of bank guarantee in case of trans-shipment of goods under goods imported regulations 1995 for Logistic service providers.
Direct port delivery (DPD) and Direct port entry for export services (DPE) Direct port delivery (DPD) and Direct port entry for export services (DPE) Direct port delivery (DPD) and Direct port entry for export services (DPE)
No Deferred duty payment (clear first -pay later principle) Deferred duty payment Deferred duty payment Waiver of bank guarantee under handling of cargo in customs area regulations 2009 for custodians or terminal operators
Bank guarantee 50% Bank guarantee 25% No Bank Guarantee Waiver of bank guarantee to be furnished under regulation 8 of the CBLR (customs brokers licensing regulations) 2013 for custom brokers
Expedited investigation-dispute resolution Waiver of seal verification Reliance on self-certified copies Faster approval for new warehouses within 7days of submission of complete documents for warehouse operators
On request 24×7 at all seaports and airports Priority in scanning / assessment Scanning only on intelligence
On site post clearance audit (OSPCA) once a year On-site post clearance audit (OSPCA) in 2years On-site post clearance audit (OSPCA) in 3years
Space in warehouse Mutual recognition Agreements (MRA) Risk based intervention by other departments
Email on arrival / departure Refund in 45days Refund / rebate in 30 days
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