Authorized Economic Operator (AEO) is a 3-tier certification program for the importers, exporters and other entities engaged in the international trade supply chain. It was developed under the guidance of the SAFE Framework of Standards, World Customs Organization (WCO) to facilitate and secure trade globally. The security standards as mentioned in the WCO SAFE Framework of Standards are the basis for AEO registration in Bangalore. Let’s uncover what are the different types of AEO certification in Bangalore and how you can obtain the same.
3 Tiers of AEO Certification in India
AEO certification in Bangalore can be divided into 3 tiers apart from AEO LO with varying levels of benefits:
AEO T1: This is for the importers and exporters who fulfil the specified criteria. This certification is based on documentation only.
AEO T2: This is also for the importers and exporters. To obtain AEO T2, both document and onsite verification are done.
AEO T3: This is the highest level of AEO accreditation for those who have enjoyed the AEO T2 status for 2 years. To obtain AEO T3 registration, physical verification becomes an important criterion.
AEO LO: This AEO certification is applicable to all the economic operators apart from the importers and exporters. This includes logistic providers, terminal operators, custodians, customs brokers and warehouse operators.
Features of AEO Certification in Bangalore
Customs administration identifies safe and compliant businesses to provide them with a higher degree of facilitation through AEO registration in Bangalore. This also allows them to focus on risky and non-compliant businesses. Further, AEO certification allows businesses to enter into international trade and commerce by granting recognition to trustworthy operators and encouraging them to follow best practices across all the levels of international supply chain. Here are some of the crucial features of AEO certification:
- You obtain the recognition of being a secure, safe and compliant business in the international trade worldwide. Further, you also enjoy the trade facilitation by customs authorities in foreign countries with which India has entered into a Mutual Recognition Arrangement / Agreement.
- The facility of Direct Port Entry (DPE) for export containers and Direct Port Delivery (DPD) for import containers is available.
- Merchant overtime fees are waived.
- Bank agreement requirements are remission partially or completely.
- Deferred payment of duties.
- Transaction PCA is waived.
- Timely refunds and settlements are being encouraged.
- Faster disbursement of duty drawback is being encouraged through the procedure specified vide Circular 18/2017 Customs dated 29/05/2017.
- Recognition is granted by the Partner Government Agencies and other stakeholders.
- Self-certified copies of PTA/FTA origin or any other certificates would be acceptable.
Benefits of Obtaining AEO Registration in Bangalore
Following are some of the key benefits of AEO certification in Bangalore:
- Self-declaration of Standard Input Output Norms (SION) is included under Para 4.07A of FTP 2015-20 for the AEO Exporters where the SION is not notified.
- The Direct Port Delivery (DPD) facility of the imports has enabled timely management of inventory for the manufacturers seeking clearance from the wharf to the warehouse.
- The Direct Port Entry (DPE) facility for the factory stuffed containers for the exports eases out the export procedure for the exporters.
- The benefit of deferred payment of duties delinks the duty payment from customs clearances, thus ensuring a smooth movement of goods.
- Mutual Recognition Agreements (MRAs) with customs authorities of other countries allow seamless facilitation of benefits from the cross-border movement of goods for entities with AEO accreditation.
- Faster processing of refunds and adjudication, including duty drawbacks and IGST refunds.
Eligibility Criteria for AEO Registration in Bangalore
If you are willing to apply for AEO certification in Bangalore, then you need to satisfy the following criteria:
- The company must have been engaged in this business activity in the last 3 financial years.
- The company should be experienced in the customs related work.
- The company should have handled at least 25 documents (Bills of Entry of Shipping Bills) in the previous financial year.
- The company should be a part of the international supply chain.
It is important to note that businesses that are not engaged in customs-related work will not be eligible to apply for the AEO registration as banks, NBFCs, insurance companies etc.
How ASC Group Help?
The AEO registration process begins with the documentation and Standard Operating Procedures (SOPs) for security and safety plans and process maps for the movement of goods during the course of international trade and commerce. ASC assists in the entire documentation aspects of AEO certification in Bangalore. ASC Group takes charge of the end-to-end process of AEO certification beginning from the stage of planning and readiness assessment till the grant of final approval. Here is how ASC Group helps you obtain AEO registration:
- Assistance in gathering documents, organizing information, preparing SOPs and establishing the standards required for AEO registration.
- Analysis of your existing level of security standards and other areas for grant of AEO license status.
- Preparing and filing AEO registration applications in Bangalore and support services during the entire application and approval process.
- Independent internal review to assess the security standards and compliance with other AEO registration requirements. Recommendation for areas of improvement before the conduct of physical verification by AEO certification authorities.
- Support services during the physical verification by AEO certification authorities.
- Liaising with the AEO registration authorities to resolve any queries and obtain AEO certification.
- Compliance assistance post AEO certification.
In case you need any assistance for AEO certification in Bangalore, feel free to contact the ASC Group.