The World Customs Organization adopted the SAFE framework of standards to secure the international supply chain. One of the 3 pillars on which the SAFE framework is formed is the Authorized Economic Operator (AEO). AEO basically is a business entity that is engaged in international trade and commerce. The security standards of the World Customs Organization SAFE framework of standards form the basis for AEO registration. AEO registration in Punjab is crucial to progress in the international supply chain.
Types of AEO Registration
Following are the different types of AEO registration in Punjab that you can apply:
AEO T1: This certification can be obtained based on document submission only. This certification is for importers and exporters only.
AEO T2: For this certification, document verification and onsite verification are conducted by the concerned officers. This certification is for importers and exporters only.
AEO T3: This certification is for importers and exporters who have enjoyed the AEO T2 certification for a continuous period of at least 2 years preceding the date of application for AEO T3 certification in Punjab.
AEO LO: This certification is for customs brokers, logistics providers, terminal operators, custodians, warehouse operators etc.
Why AEO Certification in Punjab?
AEO certification in Punjab is important as it helps the Customs administration in identifying compliant and safe businesses and provides them with a higher degree of assured facilitation. It aims to secure the international supply chain by permitting the recognition to trustworthy operators while also encouraging the adoption of best practices in the international supply chain. Here’s how the businesses are rewarded:
- Worldwide recognition of being secure, safe and compliant business partners in the international supply chain.
- Trade facilitation by the foreign Customs administration with whom India has entered into Mutual Recognition Arrangements / Agreements.
- Facility of Direct Port Delivery (DPD) of import containers and Direct Port Entry (DPE) of export containers.
- Waiver of merchant overtime fees.
- Timely refunds and settlement.
- Deferred payment of customs and other duties.
- Quicker disbursal of duty drawback amount through eased out procedure.
- Recognition of Partner Government Agencies and other stakeholders under AEO Certification.
- Self-certified copies of PTA/FTA origin or any other clearance certificate would be acknowledged.
Benefits of AEO Registration in Punjab
Here are some of the crucial benefits of AEO registration in Punjab:
- Inclusion of self-declaration of Standard Input Output Norms (SION) under Para 4.07A of FTP 2015-20 for the AEO Exporters in cases where the SION is not notified.
- Enabling of Direct Port Entry for the factory stuffed containers for exports by AEOs.
- Ensuring timely management of inventory by the manufacturers through Direct Port Delivery of imports who wish to seek clearance from the wharf to the warehouse for AEO Certification T1, T2 and T3 in Punjab.
- Delinking of duty payment and customs clearance for AEO T2 and AEO T3 through the provision of deferred payment of customs duties.
- Mutual Recognition Agreements (MRA) are being entered into with the Customs administration for AEO T2 and AEO T3. MRA functions as an equalizer that complements the minor differences to safeguard the seamless flow of benefits for the cross-border movement of goods for domestic AEO-certified businesses.
- Quicker adjudications and refunds under customs, including disbursal of duty drawback and IGST refunds.
Eligibility Criteria for AEO Registration in Punjab
To obtain AEO registration in Punjab, you need to fulfil the following eligibility criteria:
- The company should be a part of the international supply chain.
- The company should have conducted the business activity in the last 3 financial years.
- The company should have handled at least a minimum of 25 documents (bill of entries or shipping bills) in the last financial year.
- The company should be experienced in the customs related work.
It should be noted that the businesses will not be able to apply for AEO certification in Punjab as banks, NBFCs, insurance companies etc. if they are not involved in customs-related work.
How does ASC Group Help?
The AEO registration process in Punjab begins with the gathering of documents and Standard Operating Procedures (SOPs) for security and safety plans. This is followed by the process map for the movement of goods in the international supply chain. ASC Group provides end-to-end services during the AEO registration process, beginning with documenting the process of international trade in the form of SOPs. We assist right from the planning and readiness assessment stage till grant of final approval of AEO registration status in the following ways:
- Analyzing the existing level of security standards and other crucial areas important for obtaining AEO License status.
- Assistance in organizing the documents and information for filing the AEO license application in Punjab.
- Assistance in preparing the SOPs and implementation of standards necessary for the grant of AEO registration.
- Preparing and filing the application and providing end-to-end support till the grant of AEO registration in Punjab.
- Independent internal review of your security standards and compliance level with other requirements of AEO registration. This is followed by recommendations for improvement areas before the physical verification is being conducted by AEO certification authorities.
- Liaising with the AEO authorities till the grant of AEO certification in Punjab.
- Extending necessary support during physical verification by AEO authorities.
- Assistance in compliance with AEO registration status requirements.
For any assistance in relation to AEO registration in Punjab, feel free to contact the ASC Group.