AEO Certification

Introduction

AEO is a program to protect and promote global trade under the auspices of the World Customs Organization's (WCO) SAFE Framework of Standards. The program's goal is to improve international supply chain protection and make it easier for legitimate goods to travel around the world. AEO has a number of players in the global supply chain. As part of this initiative, Customs awards AEO status that participates in foreign trade and is found to be consistent with supply chain protection requirements. India's AEO Program is in line with the WTO's TFA's Article 7.7 commitments.

AEO is a self-administered enforcement program. It allows Indian Customs to improve and streamline cargo security by working closely with the key players in the international supply chain, including importers, exporters, logistics suppliers, custodians or terminal operators, custom brokers, and warehouse operators.

Who are entitled for certification?

Regardless of the size of the company, anyone involved in the international supply chain who engages in Customs-related operations in India may apply for AEO status. Exporters, importers, logistic companies (e.g., carriers, airlines, freight forwarders), Custodians or Terminal Managers, Customs House Officers, and Warehouse Owners are all potential candidates. Port operators, approved couriers, and stevedores are among those who may be qualified. This is not an exhaustive list.

• Small and medium-sized businesses that filed 25 documents in the previous fiscal year, either Bill of Entry or Shipping Bills, are also eligible for AEO.
• The applicant must have been in service for at least three financial years prior to the application date.
• For AEO certification business should have been conducted for at least 36 months

Certification is Categories under AEO scheme

1. AEO-T1- granted to applicant without physical inspection of places/premises, only an importer or exporter is allowed.
2. AEO-T2- only granted to an importer or exporter after a physical inspection of the premises/locations.
3. AEO-T3- Granted to Granted to

1. an importer or exporter who has held the AEO-T2 certificate for at least two years prior to the date of submission, or
2.  an importer or exporter who has held the AEO-T2 certificate for at least two years, and its other business partners, namely importers or exporters, Logistics service providers, Custodians/Terminal operators, Customs Brokers, and Warehouse operators.

4. AEO-AL- granted to applicant after physical inspection of premises/places, granted to economic operators other than importers and exporters (e.g. Logistics Providers, Custodians or Terminal Operators, Customs Brokers, Warehouse Operators).

Benefits of AEO Certification

Benefits of AEO-T1

Only the importer or exporter who meets the appropriate requirements receives the AEO-T1 certificate. The following is a list of benefits available to importers and exporters who have been issued an AEO-T1 certificate: -

The key advantage of having an AEO-T1 certificate is the assurance of a faster cargo release time. Imports and exports for importers and exporters with an AEO-T1 certificate would be greatly facilitated. Wherever practicable, a separate room in the Custodian's premises will be provided.

Benefits of AEO-T2

Only the importer or exporter is given the AEO-T2 certificate if all of the relevant requirements are met. The following is a list of benefits available to importers and exporters who have been issued the AEO-T2 certificate:

Those who have obtained the AEO-T2 certificate will have their consignments imported and exported with greater ease. The customs officers' inspection and scrutiny of documents will be waived at the time of seal. Furthermore, the consignment will be given free of charge or allowed to export without inspection. If the AEO-T2 certificate holder's container is chosen for scanning, it will be scanned with front-line priority.

Benefits of AEO-T3

Only the importer or exporter is given the AEO-T3 certificate if all of the relevant requirements are met. The following is a list of benefits available to importers and exporters who have been issued an AEO-T3 certificate:

AEO-T3 certificate holders will receive a higher degree of facilitation in the import and export of their consignments than AEO-T2 certificate holders.

The holders of an AEO-T3 certificate would have the option of having their containers scanned only if relevant intelligence is provided. In the event that the container is chosen for scanning, it will be given top priority.

Process of AEO certification

Step1: Make Registration at www.aeoindia.gov.in

Step2. Do the login through the username and password

Step3. After login, you can see the four sections- Profile, Application form, Application view, and update verification. Create your company profile after that proceed for the application form

Step4. the application form is divided into 2 annexures, Annexure -1 and Annexure-2, fill up both annexure and attached the required attachments related to that.

Step5. Move on to application view and check your application before submission

Step6. Final submission of application

Documents required for AEO-T1 application

1. Registration Letter
2. IEC Certification
3. GSTIN Certification
4. Site Plan
5. Company’s Registration
6. PAN
7. Process Map detail
8. Goods detail
9. Shipping bills + Bills of entry for a particular FY
10. MOA+COI+AOA/ Partnership Deed/ LLP Deed
11. Solvency certificate form CA for last 3 year
12. Last 3 year Financials (if any)
13. Declaration forms