AEO Certification
Authorized Economic Operator (AEO) certification is granted to entities involved in the international supply chain, offering simplified customs procedures and several benefits.
Who Is Entitled For AEO Certification?
Anyone involved in the international supply chain undertaking Customs related activity in India can apply for AEO status, irrespective of size of the business. This includes:
- Exporters & Importers
- Logistics providers (carriers, airlines, freight forwarders, etc.)
- Custodians or Terminal Operators
- Customs House Agents
- Warehouse Owners
- Port Operators, Authorized Couriers, Stevedores
Small and medium scale enterprises who have filed 25 documents (Bills of Entry or Shipping Bills) in the last financial year are also entitled.
AEO Applicability
The applicant should have business activities for at least three financial years preceding the date of application.
Types & Applicability, Validity & Renewal
| Type of Certificates | Applicability | Validity | Renewal Timeline |
|---|---|---|---|
| AEO-T1 | Importers & Exporters | Valid till periodical declarations are filed | |
| AEO-T2 | Importers & Exporters | 3 Years | 90 Days before expiry |
| AEO-T3 | Importers & Exporters | 5 Years | 90 Days before expiry |
| AEO-LO | Customs Brokers, Freight Forwarders, Logistics Service Providers, Custodians, Warehouse Operators | 5 Years | 90 Days before expiry |
Who Is Not Entitled For AEO Certification?
Businesses not engaged in Customs related activities are not eligible, e.g., banks, insurance companies, consultants, etc.
AEO Is Branch Wise Or Entity Wise?
AEO certification is entity wise, not branch wise or group wise. If a group has 5 companies, each must apply separately.
Main Benefits Of Certificate Under AEO Scheme
| Benefits | AEO-T1 | AEO-T2 | AEO-T3 |
|---|---|---|---|
| High level of facilitation | Yes | Yes | Yes |
| Direct Port Delivery | Yes | Yes | Yes |
| Reduction on Bank Guarantee | 50% | 75% | 100% |
| Deferred payment of Duty | No | Yes | Yes |
| Expedite refund of IGST | - | 45 Days | 30 Days |
Benefits for AEO-LO
- Waiver of Bank Guarantee
- Execution of Running Bond
- Exemption for goods transit permission
- Approval for new warehouses within 7 days
- Waiver of solvency certificate & security
- No fee for renewal of license
Where To Apply?
The application should be sent to:
AEO Programme ManagerDirectorate General of Performance Management,
Customs & Central Excise,
‘D’ Block, I.P. Bhawan, I.P. Estate,
New Delhi – 110002.