Authorised Economic Operators (AEO)

• Central Board of Indirect Taxes & Customs (CBIC) inaugurated the online filing of Authorised Economic Operators (AEO) T2 and T3 applications.
• The new version of the web application is designed to ensure continuous real-time and digital monitoring of physically filed AEO T2 and AEO T3 applications for timely intervention and expedience.

Authorised Economic Operators (AEO)

• AEO is a programme under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade.
• The programme aims to enhance international supply chain security and facilitate movement of legitimate goods.
• AEO is a voluntary programme.
• It enables Indian Customs to enhance and streamline cargo security through close cooperation with the principle stakeholders of the international supply chain viz. importers, exporters, logistics providers, custodians or terminal operators, custom brokers and warehouse operators.

Indian AEO programmes:

• The AEO programme was launched in 2011 on pilot basis.
• The security standards detailed in WCO SAFE Framework are the basis of the Indian AEO programme.
• There is a three tier AEO Status for Exporters and Importers.

• AEO T1 – Verifed on the basis of document submission only
• AEO T2 – In addition to document verifcation, onsite verifcation is also done
• AEO T3 – For AEO T2 holders who have enjoyed the status for 2 years only on the basis of document verifcation

Benefits:

• AEO status holder will get a e-mail regarding arrival/ departure of vessel carrying their consignment.
• Faster disbursal of refund, including IGST refund and rebate for AEO status holder
• Extension of facilitation to exports in addition to imports depending on the tier of certifcation.
• Paperless declarations with no supporting documents.
• Request based on-site inspection /examination.
• Investigation related to AEO status holder shall be fast tracked

• Dispute resolution related to AEO status holder shall be completed/ adjudicated within 6 months.
• Help to achieve ‘Make in India’
• Improve “ease of doing business”.
• It will lead India to become a manufacturing and exporting power-house.

World Customs Organization (WCO):

• It is an independent intergovernmental body
• It was established in 1952 as the Customs Co-operation Council (CCC).
• Its mission is to enhance the effectiveness and efficiency of Customs administrations.

• It has 182 customs administration as its members.

• These member customs administrations collectively process approximately 98% of the world trade.

• WCO is divided into 6 regions. Each region is represented by an elected Vice-Chairperson to the WCO Council.

• Headquarter: Brussels, Belgium.

• India is a member.

• India was appointed as the Vice-Chair (Regional Head) of the Asia Pacific Region for a period of 2 years from 2018 to 2020.