The Authorised Economic Operator (AEO) certification in Chennai is designed to establish the standards and facilitate international trade. It operates under the guidance of the World Customs Organization, SAFE Framework of Standards. All the businesses registered as AEO and involved in the international movement of goods shall comply with the AEO requirements. The security standards that form the basis of Indian AEO registration are listed in the World Customs Organization Safe framework of standards [WCO SAFE FoS].
Types of AEO Registration in Chennai
As per the AEO registration program, the following are the 3 tiers of AEO registration with varying levels of benefits:
AEO T1: The verification is done based on the documents submitted to the exporters and importers who fulfil the specified criteria.
AEO T2: Apart from the AEO T1 compliances, onsite verification and document verification are also done.
AEO T3: It is the highest level of AEO accreditation who have enjoyed the AEO T2 status for 2 years only based on document verification. Physical verification is an important criteria for AEO T3 registration.
AEO LO: It is for all the economic operators other than the exporters and importers. This includes custodians, terminal operators, logistics providers, warehouse operators and customs brokers.
Key Features of AEO Certification in Chennai
AEO certification in Chennai allows the Customs administration to identify secure and compliant businesses and provide them with the much-needed facilitation. Further, it also allows the department to focus its Customs resources on controlling risky and non-compliant businesses. AEO certification plays an important role in the international supply chain.
AEO certification provides recognition to trustworthy operators and encourages best practices across the entire supply chain vertical. The Customs shares the responsibility and also rewards the businesses with varying businesses including the following:
- Registered businesses obtain the recognition of being the safe, secure and compliant business partners in the international trade. They get trade facilitation from the foreign Customs administration with whom India enters into the Mutual Recognition Agreement / Arrangement.
- Access to the facility of Direct Port Entry (DPE) of the export containers and Direct Port Delivery (DPD) of the import containers.
- Complete or partial remission of the bank agreement requirements.
- Merchant overtime fees are waived.
- Payment of duties can be deferred.
- Transactional PCA fees are waived.
- Duty drawback is disbursed faster through the simplified procedure vide Circular 18/2017 Customs dated 29th May 2017.
- Timely issue of refunds and settlements
- Self-certified documents for various purposes will be acknowledged like FTA/PTA or any other certificate for clearance of goods.
- Businesses can enjoy recognition by the Partner Government Agencies and other stakeholders as part of the AEO registration.
Benefits of AEO Certificate in India
- Self-declaration of Standard Input Output Norms (SION) is included under Para 4.07A of Foreign Trade Policy (FTP) 2015-20 for the AEO registered exporters where the SION is not notified.
- Manufacturers benefit from timely inventory management due to the facilitation of Direct Port Delivery (DPD) in cases where they wish to seek clearance from the wharf to the warehouse for AEO Certification T1, T2 and T3.
- AEOs exporting factory-stuffed containers can benefit from the Direct Port Entry (DPE).
- The deferment of customs duty payment has delinked duty payment with customs clearance for AEO T2 and T3 registered businesses.
- AEO T2 and T3 registered businesses can benefit from the Mutual Recognition Agreements (MRA). It complements the minor differences to safeguard the seamless facilitation of benefits for the cross-border movement of goods for AEO-accredited entities.
- The process of adjudications and refunds, including disbursal of duty drawbacks and IGST refunds has become a lot faster.
Eligibility Criteria for AEO Certificate in India
- The company should have handled a minimum of 25 documents (Bill of Entry of Shipping Bills) in the last financial year.
- The company should be a part of the international supply chain.
- The company must be experienced in Customs related work.
- The company must have been in business activity in the last 3 financial years.
How ASC Can Help?
AEO registration in Chennai begins with documents and Standard Operating Procedures (SOPs) for safety and security plans and process maps for the movement of goods in international trade. ASC helps you document the international trade process in the form of SOPs as the first step to begin your AEO registration process.
ASC handles the end-to-end process for obtaining the AEO certification in Chennai, beginning from the planning and readiness assessment stage till you obtain final approval for AEO registration status. Here’s how ASC helps you obtain the AEO registration in Chennai:
- We analyse your existing level of security standards and other required areas for gaining AEO license status
- We assist in preparing SOPs and establishing the standards required for AEO registration in Chennai
- We help you organise the documents and information for filing the AEO license application
- We take care of the preparation and filing of the application and provide complete support to liaison with the AEO license authorities.
- We conduct an independent internal review to check the security standards and compliance level with other AEO registration requirements. We recommend the areas of improvement before physical verification by the AEO authorities.
- We extend complete support during the physical verification process by AEO registration authorities.
- We follow up with AEO authorities till AEO certification is granted.
- We provide assistance in compliance after you obtain AEO registration in Chennai.