The World Customs Organisation (WCO) developed the Indian Authorised Economic Operator (AEO) programme that was later introduced in India by the Central Board of Indirect Taxes & Customs in 2011. It is developed as per the SAFE standards of WCO and aims to secure the international supply chain. AEO refers to those business entities that are engaged in the international movement of goods that require compliance with the customs law in India. Importers, exporters and other businesses engaged in the international supply chain can obtain the following types of AEO registrations in Gujarat:
AEO T1: This AEO certification is granted based on document submissions only.
AEO T2: This AEO certification is granted based on document submission and onsite verification.
AEO T3: The AEO T3 certification in Vadodara is granted to those businesses who have enjoyed the status of AEO T2 certification at least for a period of 2 years or have introduced major changes in the business.
AEO LO: The AEO LO certification in Gujarat is available for custodians, logistics providers, customs brokers, terminal operators, warehouse operators and such other businesses that are involved in the international supply chain.
It shall be noted that the AEO T1, AEO T2 and AEO T3 registrations in Rajkot are meant for importers and exporters only.
Why You Should Obtain AEO Registration in Ahmedabad?
Gujarat is one of the fastest-developing states in India. AEO registration in Ahmedabad, Surat, Rajkot and Vadodara can be a game changer for businesses engaged in international movement of goods. It assists the customs department in identifying genuine and compliant businesses and provides them with a higher degree of accreditation. It also allows control of less compliant and risky businesses. In simple terms, AEO certification in Gujarat helps secure the international supply chain by granting recognition to trustworthy businesses and encouraging best practices at all the levels of international supply chain. Here’s how AEO accreditation rewards the registered businesses:
- Waiver of merchant overtime fees.
- Deferred payment of duties like customs duty and other duties.
- Remission of partial or complete bank agreement requirements.
- Waiver from transactional PCA.
- Grant of worldwide recognition as secure, safe and compliant business partners in international trade.
- Getting trade facilitation from the customs administration of countries with which India has entered into the Mutual Recognition Arrangement/Agreement.
- The facility of Direct Port Entry (DPE) of export containers and Direct Port Delivery (DPD) of import containers.
- Timely settlements and refunds.
- Faster disbursement of duty drawback.
- Admission of self-certified copies of PTA/FTA origin-related or any other certificates for clearance purposes.
- Recognition by the partner government agencies and other stakeholders in terms of AEO registration in Gujarat.
Benefits of Obtaining AEO Registration in Surat
Getting AEO registration in Ahmedabad, Surat, Rajkot or Vadodara can provide you with the following key benefits:
- Enabling Direct Port Delivery (DPD) for imports allows manufacturers to manage their inventories timely where they seek clearance from the wharf to the warehouse for AEO T1, AEO T2 and AEO T3 certification.
- Enabling Direct Port Entry (DPE) for the factory-stuffed containers that are meant for exports.
- Inclusion of the 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.
- Fast-tracking of adjudications and refunds. This includes disbursal of IGST refunds as well as duty drawbacks.
- India has entered into Mutual Recognition Agreements / Arrangements with the customs administrations for AEO T2 and AEO T3 entities. This functions as an equalizer that complements the minor differences to safeguard the seamless facilitation of benefits for the cross-border movement of goods in the case of domestic AEO-accredited businesses.
Eligibility Criteria for AEO Registration in Gujarat
You need to fulfil the following eligibility criteria for AEO certification in Gujarat:
- The company should be a part of the international supply chain.
- The company should have experience in customs-related work.
- The company must have handled a minimum of 25 documents (bills of entry or shipping bills) in the previous financial year.
- The company should have conducted business activity in the last 3 financial years.
It should be noted that you cannot apply for AEO certificate in Gujarat as NBFCs, banks, insurance companies etc. if you are not involved in customs-related work.
How ASC Can Help?
Gathering documents and developing Standard Operating Procedures (SOPs) are the starting point for AEO certification in Gujarat. Then, you need to develop the process map for the movement of goods in the international trade. Here’s how ASC helps in AEO registration in Surat:
- End-to-end assistance in obtaining AEO registration status in Gujarat, starting from the planning and readiness assessment stage till getting the final approval of AEO registration status.
- Documenting your international trade process in the form of SOPs.
- Analyzing the existing level of security standards and other areas for getting AEO certification.
- Assistance in the preparation of SOPs and establishing the standards for AEO license in Gujarat.
- Assistance in organizing the documents and information for filing the AEO license application in Gujarat.
- Preparing and filing the AEO registration application and providing time-to-time support as required by the AEO licensing authorities.
- Conducting internal review independently to check the security standards and compliance with the other requirements of AEO registration. This is followed by recommendations for improvements before the physical verification is conducted by the AEO certification authorities.
- Extending the necessary support when the AEO registration authorities conduct physical verification.
- Liaising with the AEO registration authorities till the grant of AEO certification in Gujarat.
- Complete assistance in ensuring post-registration compliance with the AEO registration status.
In case you are willing to apply for AEO registration in Gujarat like Surat, Ahmedabad, Vadodara and Rajkot, feel free to contact the ASC Group.