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A R A D H Y A
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Authorized Economic Operator(AEO)

Authorized Economic Operator(AEO)

Overview of Customs Authorized Economic Operator (AEO)

A) Privileges:

Sl No Category AEO-T1 AEO-T2 AEO-T3
01 Benefits - Higher level of facilitation > AEO -T1 Highest level of facilitation > AEO-T2
02 Shorter Cargo Release time Yes Yes Yes
03 Direct Port Delivery/ Direct Port Entry (depends on the volume/no of containers) Yes Yes Yes
04 In case DPD / DPE not opted, seal verification / scrutiny of Documents will be waived No Yes Yes
05 Scanning of Containers - High Priority NA for scanning (if selected on any specific intelligence, will be given highest priority)
06 Facility of deferred payment of duty will be provided, from a date to be notified No Yes Yes
07 Faster disbursal of drawback amount within 72 hours of EGM submission, from a date to be notified No Yes Yes
08 The BEs/SBs selected for Assessment and/or Examination will be processed on priority by the Customs officers. No Yes Yes
09 Facility of self -sealing of export goods would be allowed without the requirement to seek case to case base permission from the authorities No Yes Yes
10 Faster completion of Special Valuation Branch (‘SVB’) proceedings in case of related party imports and monitoring of such cases for time bound disposal in terms of new guidelines No Yes Yes
11 Bank Guarantee (Not applicable for release of Seized goods) 50 % of actual amount without AEO 25 % of actual amount without AEO Not Applicable
12 Facility to paste MRP stickers in their premises. No Yes Yes
13 Regular Transactional PCA (Post Clearance Audit) Once in 2 years Once in 3 years on request
14 Access to Import/ Export Data from ICEGATE No Yes Yes
15 Facility for submission of paperless declarations No Yes Yes
16 Dedicated Client Relationship Manager at the level of Deputy / Assistant Commissioner, for quick resolution of operational issues No Yes Yes
17 The refund/Rebate of Customs/Central Excise duty and Service Tax on will be granted within regular timeline 45 days 30 days
18 Will get trade facilitation by a foreign Customs administration with whom India enters into a Mutual Recognition Agreement/Arrangement. No Yes Yes
19 Hassel free entry to Customs Houses, CFSs and ICDs Yes Yes Yes
20 Separate space earmarked in Custodian's premise Yes Yes Yes
21 Investigation time with respect to Customs, Central Excise and Service tax cases 6 to 9 months Higher Priority Highest Priority
22 Dispute Resolution time at level of adjudicating authority 6 months Higher Priority Highest Priority
23 Email notifications regarding arrival / departure of the vessel carrying their consignments Yes Yes Yes
24 24/7 clearances on request at all seaports and airports Yes Yes Yes
25 No Merchant Overtime fee (MOT) Yes Yes Yes
26 The assessing/examining custom officer will rely on the self-certified copies of documents submitted by them without insisting upon original documents. No No Yes
27 An approach based on Risk based interventions, in case of requirements originating from the Acts administered by other Government. Agencies/Departments, will be adopted for providing better facilitation in imports and export of their consignments. No No Yes
28 Advance Authorisation under this scheme on self-declaration and self-ratification basis Yes Yes Yes

B) Primary Eligibility Criteria:

Sl No Category AEO-T1 AEO-T2 AEO-T3
01 Granted to Exporter or Importer Exporter or Importer Exporter or Importer
02 Involved in international supply chain that undertakes Customs activity in India Yes Yes Yes
03 Business activities should have for at least three financial years preceding to the date of application * Yes Yes Yes
04 Business entity should have handled at least 25 shipments either Bill of Entries or Shipping Bills during the last financial year Yes Yes Yes
05 Should not be no Show Cause Notice issued during the last three financial years involving fraud, forgery, outright smuggling, clandestine removal of excisable goods or cases where Service Tax has been collected from customers but not deposited to the Govt. Yes Yes Yes

C) Post Certification Provisions:

Sl No Category AEO-T1 AEO-T2 AEO-T3
01 Validity 3 years 3 years 5 years
02 Renewal (Maximum by) within 30 days of lapse of validity within 60 days of lapse of validity within 90 days of lapse of validity
03 Revisions/ Corrections (maximum by)
  1. Change to the legal entity.
  2. Change of business name and/or address.
  3. Change in the nature of business i.e., manufacturer / exporter etc
  4. Changes to accounting and computer systems
  5. Changes to the senior personnel responsible for Customs matters.
  6. Addition or deletion of locations or branches involved in international supply chain
Intimated to AEO Programme Team within 14 days of change taking place
04 If the legal entity changed by the AEO holder Need to obtain fresh certificate Need to obtain fresh certificate Need to obtain fresh certificate
05 Review of AEO Status by AEO Programme team for every 2 years for every 3 years for every 5 years
06 Suspension or downgrading of AEO Status:
  1. In case of non-compliance of conditions
  2. In the Logistic Operator has been suspended by the competent authority
  3. In case of issuance of SCN after obtaining AEO status
Yes Yes Yes