An Authorized Economic Operator (AEO) is a company or individual that has been certified by the competent authority in their country as having met certain standards and criteria. The AEO concept was introduced by the World Customs Organization (WCO) in 2005 with the aim of providing a global framework for cross-border trade facilitation and security.
As global trade has grown in complexity, the number of AEOs has also increased. There are now more than 10,000 AEO-certified companies worldwide. The United States, China, and Japan are some of the countries with the most AEOs.
An AEO Registration & certification can provide many benefits, such as expedited customs clearance, reduced inspection rates, and preferential treatment in the event of an audit. In addition, AEOs are often seen as being more reliable and trustworthy partners by other businesses and government agencies.
If you are involved in global trade, then you should definitely consider registering under an AEO Programme. This article caters the complete guide on obtaining AEO Certification.
What is the Eligibility requirement for AEO Registration?
AEOs are eligible for exporters and importers, MSME, Logistic operator, etc. who are deemed to be ‘safe’ and ‘compliant’ by the Customs authorities. The AEO Status is granted by the Customs authority, on the recommendation of a high-level committee.
For companies involved in importing & exporting their product there are three tiers providing varying levels of benefits:
- AEO T1 –Verified based on submitted document only
- AEO T2 – Apart from the compliance applicable in T1, other compliances are also done like document verification, and onsite verification
- AEO T3 – For AEO T2 owner who has relished the benefits for 2 years only based on document verification & for AEO T2 holders who have not benefited the AEO status or have announced major changes, the applicant is liable to physical verification.
- AEO LO – AEO LO is considered for logistics providers, terminal operators, custodians, warehouse operators, and customs brokers, etc.
In order to be eligible for AEO Status in India, an organization must:
- Be a registered business entity in India
- Be involved in the international supply chain
- Have a good track record of compliance with Customs regulations
- Have sound financials
- Have adequate security and control systems in place
- Be able to provide information and documentation as required by Customs
If you meet all of the above criteria, you can apply for AEO Registration by filling out the online application form.
In nutshell:
ASC Group have a team of highly experienced and qualified AEO (Authorized Economic Operator) experts who can assist companies with all the AEO compliance needs. Our team years of experience in working with businesses of all sizes to confirm that the companies are compliant with the latest AEO standards. We can help you with everything from certification, renewal, advisory to quality management systems.
If you are looking for assistance with AEO compliance, then please do not hesitate to get in touch with ASC Group. Our team will be more than happy to help you ensure that your business is compliant with all the latest AEO standards.
