🚛 Authorized Economic Operator (AEO) Certification – Key to Efficient Trade Operations
âś… What is AEO Certification?
The Authorized Economic Operator (AEO) is a trade facilitation scheme introduced by the Central Board of Indirect Taxes and Customs (CBIC) under the World Customs Organization’s (WCO) SAFE Framework of Standards. This program is designed to enhance security and efficiency within the international supply chain and ease of doing business in India.
Holders of the AEO certificate enjoy privileges, exemptions, benefits, and relaxations in import and export procedures. The AEO certification is valid for three years, after which it must be renewed.
🎯 Objectives of the AEO Program
To facilitate secure and efficient international trade.
To promote the reduction of customs and clearance times.
To ensure high standards of security in the global supply chain.
To support trusted traders with better compliance management and ease of operation.
📦 Benefits of AEO Certification
| Benefit | AEO-T1 | AEO-T2 |
|---|---|---|
| Shorter Cargo Release Time | Yes | Yes |
| Direct Port Delivery (DPD)/Direct Port Entry (DPE) | Yes | Yes |
| ID to Authorized Personnel | Yes | Yes |
| Separate Space Earmarked in Custodian’s Premises | Yes | Yes |
| Bank Guarantee Requirement | 50% | 25% |
| Investigations Completed in | 6-9 months | 6 months |
| Dispute Resolution | Within 6 months | Within 6 months |
| Email Notifications for Vessel Arrival/Departure | Yes | Yes |
| 24/7 Clearances on Request (Ports/Airports) | Yes | Yes |
| No Merchant Overtime Fee (MOT) Charges | Yes | Yes |
| Waiver of Seal Verification/Scrutiny of Documents | No | Yes |
| Out of Charge/Let Export Order Without Scrutiny | No | Yes |
| Frontline Treatment for Container Scanning | No | Yes |
| Facility of Deferred Payment of Duty | No | Yes |
| Disbursal of Drawback Amount | N/A | Within 72 hours of EGM submission |
| Priority Assessment/Examination | Yes | Yes |
| Faster Completion of Special Valuation Branch (SVB) Proceedings | No | Yes, in a time-bound manner |
| MRP Sticker Placement at Premises | No | Yes |
| Post-Clearance Audit (PCA) | Yes | Onsite PCA once every three years |
| Access to Consolidated Import/Export Data via ICEGATE | No | Yes |
| Paperless Declarations (No Physical Documents) | No | Yes |
| Client Relationship Manager (CRM) at AC/DC Level | No | Yes |
AEO Benefits under the Advance Authorization Scheme
Self-certification for Advance Authorization: AEO holders can apply for Advance Authorization without the need for ratification by the Norms Committee.
Deferred Payment Scheme for Duty:
AEO-T2 & AEO-T3 holders are eligible for deferred duty payments under the customs notification 135/2016-Customs.
Payment Schedule for Deferred Duty:
1st to 15th day of the month: Duty to be paid by 16th of the month.
16th to last day of the month (except March): Duty to be paid by 1st of the following month.
16th to 31st March: Duty to be paid by 31st March.
⏳ Validity & Renewal of AEO Status
AEO certification is valid for 3 years.
After 3 years, it must be renewed to continue enjoying AEO benefits.
AEO-T3 status can only be granted after holding AEO-T2 status for a minimum of 2 years.
🚀 How Dhruva Services Helps You Obtain AEO Certification
At Dhruva Services, we provide complete support to help you secure your AEO certification:
âś… Eligibility Analysis: We evaluate your eligibility for AEO-T1, T2, or T3 based on your business structure and trade volume.
âś… Document Preparation: We help gather and prepare all required documents, including financial statements, customs data, and security protocols.
âś… Application Filing: We assist in filling out the AEO application and submitting it to the AEO Cell.
âś… Site Visits & Coordination: We coordinate with customs authorities for site verification (for AEO-T2 and T3).
âś… Customs Liaison: We handle all follow-ups with customs, including dispute resolution and inquiries.
âś… Post-Certification Support: Assistance with post-certification audits, compliance checks, and certificate renewals.