Authorised Economic Operator Programme

The Indian AEO Programme, which started in 2011, has come a long way in the last few years. It is designed to set standards to secure and to facilitate the ever-growing flow of goods in international trade. Today, the programme has a membership of nearly 5,000 AEO entities. That is 5,000 economic entities which have actively collaborated with Indian Customs to ensure safety and security in the Supply Chain. And in return, they are reaping benefits of an ever-widening set of benefits from Indian Customs such as faster processing and clearance of cargo, deferred payment of duty, direct port delivery/entry.

Indian Customs has collaborated with several foreign customs administrations to align with their Authorized Economic Operator Programmes, which effectively allows Indian Customs to internationalize the core principles of the program and provide benefits to Indian trade at the international level.

The AEO programmes have been implemented by other Customs administrations that give AEO status holders preferential Customs treatment in terms of reduced examination, faster clearances and other benefits.

Benefits of AEO are

1. Secure supply chain from point of export to import;
2. Ability to demonstrate compliance with security standards when contracting to supply overseas importers /exporters;
3. Enhanced border clearance privileges in Mutual Recognition Agreement (MRA) partner countries;
4. Minimal disruption to flow of cargo after a security related disruption;
5. Reduction in dwell time and related costs; and
6. Customs advice / assistance if trade faces unexpected issues with Customs of countries with which India have MRA.

Mutual Recognition Agreements are the international face and connecting link of the domestic AEO Programme of various countries. It acts as an equalizer that harmonize the minor difference to allow for seamless facilitation in terms of benefits and processes for movement of goods across borders for the domestic AEO accredited entities. Mutual Recognition of AEOs is a key element of the WCO SAFE Framework to strengthen end-to-end security of supply chains and to multiply benefits for traders at a global level.

By mutual recognition of AEOs two customs administrations agree to:

• recognise the AEO authorisation issued under the other countries programme and
• provide reciprocal benefits to AEOs of the other countries AEO entity.

Are you an AEO Eligible entity

Eligibility Criteria for an entity

1. Handled 25 documents (s/B & Bills of Entry) in last Financial Year.
2. Should Undertake Customs Related Work.
3. Be a part of international supply chain.
4. AEO can only be given to legal entity and not group company.
5. Have had business activity for three Financial Years (can be waived in deserving cases).

In FTP, 2023 as a step further towards trust-based compliance, Indian Customs has introduced the new/revamped Authorised Economic Operator (AEO) Programme wherein extensive benefits, including greater facilitation and self-certification, have been provided to those entities who have demonstrated internal strong control system and compliance with CBIC

Under the AEO program of Indian Customs, the MSMEs are also covered.