Authorised Economic Operators Programme:
The gem and jewellery sector has been granted Authorised Economic Operator (AEO) status by the Ministry of Finance, easing export-import processes with shorter cargo release times and reduced bank guarantees.
Authorised Economic Operators Programme:
- The Authorised Economic Operator (AEO) programme is a global initiative launched in 2007 under the World Customs Organization’s (WCO) SAFE Framework of Standards.
- It serves a dual purpose
- Enhancing International Supply Chain Security: The AEO programme aims to strengthen security measures throughout the international movement of goods, minimising risks associated with smuggling and counterfeiting.
- Facilitating Trade Flow: By recognising businesses that meet stringent security standards, the programme aims to expedite customs clearance processes, reducing delays and costs for legitimate traders.
- 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, and improved security and communication between supply chain partners.
- AEO is a voluntary programme.
- India has also launched pilot project in 2011, the Indian AEO Programme that leverages the security standards established by the WCO SAFE Framework.
- This program offers a three-tiered system for both exporters and importers, allowing companies to progressively demonstrate their commitment to secure trade practices.
