Knowledge of Authorized Economic Operator (AEO)

AEO is a programme under the guidance of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade.

1. Authorized Economic Operator (AEO ) 1 05-JULY-2018 M.Revathi 1 1

2. CONTENTS S. No Description Page No. 1 Introduction of AEO 3 2 Eligibility criteria to apply AEO 4 3 Types of Certification in AEO 5 4 AEO Certification Process Flow chart 6 5 Benefits of AEO Certificate 7 6 Application submission in AEO certificate 9 7 Documents required to apply AEO Certification 10 1 2

3. AEO is a programme under the guidance of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade. The programme aims to enhance international supply chain security and facilitate movement of legitimate goods. Circulars 42/2005 dated 24.11.2005 pertaining to ACP and Circular 28/2012 for AEO were in place. It enables Indian Customs to enhance and streamline cargo security through close cooperation of Major players in supply chain are give below ; The Circular 33/2016 – Customs dated 22.07.2016 provides the statutory framework for the AEO programme . EVOLUTION OF AEO Major players in supply chain 1 3

4. Eligibility criteria for a business entity: 1 4

5. Multiple tiers of Certification in AEO For importers and exporters there are three tiers providing varying levels of benefits For logistics providers , custodians or terminal operators, custom brokers and warehouse operators there is only one tier 1 5

6. Process Flow chart Validity & Renewal of AEO certificate AEO Validity Time limit for submission of application for renewal before lapse of validity AEO-T1 2 Years 30 days AEO-T2 3 Years days AEO-T3 5 Years days AEO-LO 5 Years 90 days 1 6

7. Benefits of AEO Certification S.No Benefits AEO-T1Certificate AEO-T2 Certificate AEO-T3 Certificate Remarks 1 High level of facilitation Yes Yes Yes Faster shipment clearance,duty benefits ,duty Drawbacks and duty refunds, certifications,etc 2 Direct Port Delivery import/export container Yes Yes Yes Shipment take delivery direct from port and exit the shipment direct to the port 3 ID cards to authorized personnel for hassle free entry to Custom Houses, CFSs and ICDs. Yes Yes Yes Easy avail of authorized ID Cards to enter Custom Houses, CFSs and ICDs. 4 Separate space earmarked in Custodian’s premises Yes Yes Yes Wherever feasible, they will get separate space earmarked in Custodian’s premises 5 Reduction on Bank Guarantee 50% reduction 75% reduction 100% reduction BG free benefits 6 Investigations, if any, would be completed, in six to nine months Yes Yes Yes Investigations, if any, in respect of Customs, Central Excise and Service Tax cases within 6 to 9 months 7 Dispute resolution within six months Yes Yes Yes Long pending dispute also would be completed within 6 months 8 E-mail regarding arrival/ departure of the vessel carrying their consignments Yes Yes Yes will get an e-mail regarding arrival/ departure of the vessel carrying our consignments 9 24/7 clearances on request at all sea ports and airports Yes Yes Yes 24/7 customs clearance is possible all our shipment 10 Seal verification/scrutiny of documents by Custom officers would be waived Yes Yes Yes Customs officer waived the Seal verification/scrutiny of documents. 1 7

8. Cont … S.No Benefits AEO-T1Certificate AEO-T2 Certificate AEO-T3 Certificate Remarks 11 Deferred payment of Duty   No Yes Yes customs duty payment will pay later after the shipment delivery 12 BEs/SBs will be processed on priority Yes Yes Yes BEs/SBs customs clearance in priority basis 13 Faster completion of Special Valuation Branch (‘SVB’) Yes Yes Yes fatesr completion of SVB Certificate and SVB fund 14 Shorter cargo release time Yes Yes Yes Cargo will release from customs in short time 15 facility to paste MRP stickers No Yes Yes facility to paste MRP stickers 16 access to their consolidated import/export data No Yes Yes given access to download consolidated import/export data through ICEGATE 17 Paperless declarations with no supporting documents in physical form. No Yes Yes Paperless declarations with no supporting documents in physical form. 18 Client Relationship Manager”(CRM at the level of Deputy / Assistant Commissioner available at port who will act voice of AEO holder Yes Yes Yes Separate Deputy / Assistant Commissioner available at port who will act voice of AEO holder 19 Expedite refund of IGST   45 Days 30 Days Reduction of IGST refund 20 No Merchant Overtime Fee (MOT) No Yes Yes No MOT charges 1 8

9. Application submission in AEO certificate SL No Annexure Subject Application for grant of AEO-T1 AEO-T2 AEO-T3 AEO-LO 1 Annexure-A Application Form YES YES YES YES 2 Annexure-B Security Plan YES YES YES YES 3 Annexure-C Process Map NO YES YES YES 4 Annexure-D Site Plan YES YES YES YES Annexure-E Self-Assessment Form 5 Annexure-E.1 General Compliance YES YES YES YES 6 Annexure-E.2 Legal Compliance YES YES YES YES 7 Annexure-E.3 Managing Commercial and (where appropriate) transport records YES YES YES YES 8 Annexure-E.4 Financial Solvency YES YES YES YES 9 Annexure-E.5 Safety and Security NO YES YES YES 10 Annexure-F Business Partner Details NO NO YES NO 1 9

10. Documents required to apply AEO Certification SL No Documents Name Document required 1 BASIC DOCUMENTS 1. IEC CODE letter / Import licence 2. Factory licence copy 3. VAT/SERVICE TAX / GST Registration certificate 4. Certificate of incorporation 5. Memorandum of Association and Articles of Association or partnership deed copy 6. List of Directors or partners 7. Name of the Company Secretary and address in case of company 8. PAN copy of the company. 9. PAN copy of all directors. 10. DIN/DPIN no of the Directors. 11. Details of imports / exports done in the last financial year (BE/Shipping bill details) 12. AEO certificate of the holding company, if applicable. 13. List of other offices /branches and Other locations addresses and undertaking letter For other locations ( format will be sent later) 14. Name of the person authorized as single point of contact for AEO related matters and e-mail address & Mobile number. 2 ACCOUNTS AND FINANCE DETAILS 1. Previous three years Balance Sheet and profit & loss account along with schedules, directors’ report and audit report. 2. Income tax returns copies for the previous three years. 3. ROC returns filed copies of annual returns for the previous three years and GAR 7 challans for the last three financial years. 4. Certificate from the auditors that accounts are maintained in GAAP/IFRS, whichever is applicable. 5. Solvency certificate for last three financial years( copy of the format will be sent later) 6. Self declaration from the company for solvency for last three financial years (format will be sent later). 1 10

11. Cont … SL No Document Name Document required 3 LEGAL COMPLIANCE 1. Details of show cause notices received ( if any) , cases pending before appellate authorities under Customs, excise or Service Tax or any other statutes in the format enclosed (Annexure A) 2. Customs declarations copies, if any. 3. Imports register/document register. 4 CARGO DETAILS: 1. Details of goods imported / exported. 2. Countries of origin 3. Suppliers names and country. 4. AEO certificates of suppliers/customers 5. Boundary details of warehouse where cargo is stored. 5 BRIEF WRITE UP ON PROCEDURE / PROCESS MAP/ FLOW CHART OF THE FOLLOWING 1. PRODUCTION PROCESS MAP, IFMANUFACTURING UNIT. 2. IMPORT PROCESS MAP 3. EXPORT PROCESS MAP 4. CARGO HANDLING MAP 5. SUPPLY CHAIN MAP 6 PREMISES DETAILS 1. Building / premises plan. Seating plan Along with CCTV CAMERA POINTS AND PHOTOGRAPH 2. Entry and exit points – CCTV footage. 3. Storage place and Restricted area —CCTV footage. 4. Manufacturing facility - CCTV footage. 5. Parking area – CCTV footage. 6. Fencing and compound wall – CCTV footage, IF AVAILABLE. 7. Visitors book – Xerox copy of few pages. 8. Documents storage room/cabinet photograph 7 MISC 1. IT POLICY 2. AMC contracts for Computers, anti-virus and systems. 3. OTHER CERTIFICATIONS COPIES LIKE ISO9000 ETC. 1 11

12. Thank You 1 12