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Authorised Economic Operators (AEO)

Authorised Economic Operators (AEO):

The Central Board of Indirect Taxes & Customs (CBIC) has inaugurated the online filing of Authorised Economic Operators (AEO) applications.

  • The web application is designed to ensure continuous real-time and digital monitoring of physically filed AEO applications for timely intervention and expedience.
  • AbAEO is a programme (2007) under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate global trade.
  • It aims to enhance international supply chain security and facilitate the movement of goods.
  • Under this, an entity engaged in international trade is approved by WCO as compliant with supply chain security standards and granted AEO status.
  • An entity with an AEO status is considered a ‘secure’ trader and a reliable trading partner.
  • Benefits of AEO status include expedited clearance times, fewer examinations, improved security and communication between supply chain partners.
  • AEO is a voluntary programme.

Indian AEO Programme:

  • The AEO Programme was introduced as a pilot project in 2011.
  • The security standards detailed in WCO SAFE Framework are the basis of the Indian AEO programme.
  • There is a three tier AEO Status for Exporters and Importers.
  • The three tiers are AEO T1, AEO T2, AEO T3, where AEO T3 is the highest level of accreditation.