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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 T2 is the second tier of the AEO Certificate which is only available for importers and exporters. AEO T2 Certificate awards an importer/exporter with even more benefits and priority treatment as compared to AEO T1 certificate. However, the documentational requirements of AEO T2 are even more than AEO T1.
WHAT ARE THE BENEFITS OF OBTAINING AEO T2 CERTIFICATE?
HIGHER FACILITATION
AEO T2 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.
WAIVER OF SEAL VERIFICATION
For AEO T2 certified companies verification/scrutiny of documents by the customs officers would be waived at the time of seal. Further, consignment would be given out of charge or let export order without any scrutiny.
DIRECT PORT DELIVERY AND DIRECT PORT ENTRY
AEO T2 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.
ONLY ONE OSPCA IN TWO YEARS
The AEO T2 certfied companies will not be subjected to regular transactional Post-Clearance Audits (PCA). On-site PCA will be conducted only once in two years.
REFUND/REBATE WITHIN 45 DAYS
The refund/rebate relating to indirect taxes of an AEO T2 certified company will be granted within a period of 45 days.
24X7 CLEARANCE
Companies having AEO T2 certificate get the facility of 24/7 clearance at all seaports and airports. Furthermore, these companies are also exempted from paying Merchant Overtime Fees.
PRIORITY SCANNING
In case a container of AEO T2 certified company is selected for scanning, the same would be scanned on front-line priority
75% BG WAIVER
AEO T2 certified companies will have the facility of 75% BG Waiver. AEO T2 companies are eligible to provide 50% less bank guarantee as compared to non-certified companies.
EMAIL ON ARRIVAL/DEPARTURE
Companies having AEO T2 certificate will receive regular email updates on arrival and departure of the vessels.
FASTER DUTY DRAWBACK
Companies having AEO T2 certificate enjoy the facility of expedited duty drawback as compared to non-certified companies.
ID CARDS AND SPACE IN WAREHOUSE
An authorised personnel from an AEO T2 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).
DEFERRED DUTY PAYMENT
AEO T2 Certified companies are eligible to avail the benefit of Deferred Payment of Duty Scheme, as a part of which they are allowed to de-link customs duty payment with customs clearance.
FASTER DISPUTE RESOLUTION
AEO T2 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.
SELF SEALING OF CONTAINERS
AEO T2 certified companies are eligible of self sealing exprot products in containers without the requirement to seek case to case permission from the authority.
CLIENT RELATIONSHIP MANAGER
A Client Relationship Manager will be appointed by the customs houses, who will act as a voice of AEO T2 certified company within the customs in matters related to legal concerns and issues of AEO Programme.
