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The World Customs Organization (WCO) initiated the Authorized Economic Operator (AEO) program as part of the SAFE framework to ensure and expedite global trade. The program’s objective is to strengthen security in the international supply chain while also promoting the movement of legal goods. Government of India has introduced this program to improve Ease of Doing Business in they country. The AEO program provides importers and exporters with a three-tier certification system (AEO T1, AEO T2, and AEO T3) and a single-tier certification system (AEO-LO) for logistics operators.
AEO T1 is the first tier of the AEO Certificate which is only available for importers and exporters. It is considered as a basic level of certification and allows for simplified customs procedures and reduced customs controls.
WHAT ARE THE BENEFITS OF OBTAINING AEO T1 CERTIFICATE?
HIGHER FACILITATION
AEO T1 certified companies are given priority treatment and faster clearance of their goods compared to non AEO companies. This higher facilitation leads to reduced waiting times and lower costs associated with customs procedures.
ONLY ONE OSPCA IN ONE YEAR
The AEO T1 certfied companies will not be subjected to regular transactional Post-Clearance Audits (PCA). On-site PCA will be conducted only once in a year.
FASTER DISPUTE RESOLUTION
AEO T1 certified companies are given a facility of expedited dispute resolution preferably within 6 months. Investigation relating to indirect tax cases will also be done on priority.
24X7 CLEARANCE
Companies having AEO T1 certificate get the facility of 24/7 clearance at all seaports and airports. Furthermore, these companies are also exempted from paying Merchant Overtime Fees.
50% BG WAIVER
AEO T1 certified companies will have the facility of 50% BG Waiver. AEO T1 companies are eligible to provide 50% less bank guarantee as compared to non-certified companies.
EMAIL ON ARRIVAL/DEPARTURE
Companies having AEO T1 certificate will receive regular email updates on arrival and departure of the vessels.
DIRECT PORT DELIVERY AND DIRECT PORT ENTRY
AEO T1 certified companies are eligible for both Direct Port Delivery and Direct Port Entry facilities, which can further lead to reduced dwell time, faster turnaround time, and cost savings.
ID CARDS AND SPACE IN WAREHOUSE
An authorised personnel from an AEO T1 certified company is issued an ID Card from Indian Customs Authorities to facilitate hassle-free entry to Customs House, CFS (Container Freight Station), and ICD (Inland Container Depot).
