Subject: Authorized Economic Operator (AEO) programme, various advantages- reg. - Customs - 16/2018

OFFICE OF THE COMMISSIONER OF CUSTOMS (NHAVA SHEVA-III) JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA, URAN, RAIGAD, MAHARASHTRA 400 707 F. No. S/22-Gen-133/17-18/AM (I) Date: 25.01.2018 PUBLIC NOTICE No. 16/2018 Subject: Authorized Economic Operator (AEO) programme, various advantages- reg. Attention of all Custom House Agents, Exporters, Importers, Members of the Trade and other stake holders is invited to the Board Circular No. 33/2016-Customs, dated 22-7-2016 and Circular No. 3/2018- Customs, dated January 17, 2018 ((available at: http://www.cbec.gov.in/Customs-Circulars-Instructions) on the above mentioned subject. 2. As a result of sustained efforts on the part of all stakeholders, volume of consignments cleared through Direct Port Delivery (DPD) (a flagship programme of JNCH) has already exceeded 36%. However, it is observed that there are large number of importers, which are availing DPD facility but have not availed the full benefits of all the ease of doing measures initiated by JNCH and Central Board of Indirect Taxes and Customs (CBIC) by not submitting application for certification under Authorized Economic Operator (AEO) programme, which is another major initiative of the Government of India. 3. Authorized Economic Operator (AEO) programme works on modern supply chain security standards with close partnership between Customs and business. The AEO programme seeks to provide tangible benefits in the form of faster Customs clearances and simplified Customs procedures to those business entities who offer a high degree of security guarantees in respect of their role in the supply chain. 4. The objective of the AEO Programme is to provide businesses with an internationally recognized quality mark which will indicate their secure role in the international supply chain and that their Customs procedures are efficient and compliant. An entity with an AEO status can, therefore, be considered a secure trader and a reliable trading partner. For the economic operators other than importers and the exporters, AEO programme offers one tier of certification (i.e. AEO-LO) whereas for the importers and the exporters, there will be three tiers of certification (i.e. AEO-T1, AEO-T2 and AEO-T3). Eligibility conditions and criteria laid down under paragraph 3 of Board Circular No. 33/2016-Cus., dated 22-7-2016 (as modified vide and Circular No. 3/2018- Customs, dated January 17, 2018) ((available at: http://www.cbec.gov.in/Customs-Circulars-Instructions) 5. Through this initiative, Indian Customs have been asking businesses to ensure the integrity of their security practices and communicate and verify the security guidelines of their business partners within the supply chain. In exchange, Indian Customs extends to its AEO members with certain benefits, including: i. Inclusion of Direct Port Delivery of imports to ensure just-in-time inventory management by manufacturers clearance from wharf to warehouse for AEO T1, T2 and T3. ii. Inclusion of Direct Port Entry for factory stuffed containers meant for export by AEOs for AEO T1, T2 AND T3. iii. Provision of Deferred Payment of duties delinking duty payment and Customs clearance for AEO T2 and AEO T3 iv. Benefits of Mutual Recognition Agreements with other Customs Administrations for AEO T2 and AEO T3. v. Faster disbursal of drawback amount vi. Fast tracking of refunds and adjudications vii. Extension of facilitation to exports in addition to imports depending on the tier of certification. viii. Self-certified copies of FTA / PTA origin related or any other certificates required for clearance would be accepted ix. Request based on-site inspection /examination x. Paperless declarations with no supporting documents xi. Recognition by Partner Government Agencies and other Stakeholders as part of this programme. xii. In accordance with the conditions laid down in Para 4.07A of FTP 2015-2020, where there is no SION/valid Ad-hoc Norms for an export product and where SION has been notified but exporter intends to use additional inputs in the manufacturing process, eligible exporter, who is an AEO, can apply for an Advance Authorisation under this scheme on self declaration and self ratification basis 6. In view of the above, all the importers, especially those also availing DPD facility, are advised to apply for AEO certification so as to avail various significant benefits available to AEOs under the scheme, which also includes higher facilitation of Bills of Entry under RMS. Application may be submitted in this Customs House (Addressed to the Additional Commissioner of Customs, Chief Commissioner s Office (CCO), Jawaharlal Nehru Custom House, Nhava Sheva, Tal:- Uran, Dist: Raigad, Pin 400 707) with copy to AEO Programme Manager, Directorate of International Customs or in case of any doubt, to the AEO Programme Manager, Directorate of International Customs, 10th Floor, Tower II, Jeevan Bharti Building, Connaught Place, New Delhi 110001 as per the procedure prescribed under CBEC Circular 33/2016 (as modified vide and Circular No. 3/2018- Customs, dated January 17, 2018) (available at: http://www.cbec.gov.in/Customs-Circulars-Instructions). 7. In addition to the subject, this Customs House is planning to conduct workshops on AEO programme with top importers of this port to educate about the incentives of AEO programme and to resolve any difficulty being faced by trade. The date and venue of the said workshop shall be communicated to you shortly. 8. JNCH has nominated DC/AC in-charge of Chief Commissioner s Office as Client Relationship Manager (CRM) for all the AEO entities in the jurisdiction of JNCH and the same has been uploaded on JNCH website for easy access. 9. In case of any difficulty, the specific issue may be brought to the notice of Client Relationship Manager (DC/AC in-charge of Chief Commissioner s Office), JNCH. 10. Action to be taken in terms of decisions taken in this Public Notice should be considered as standing order for the purpose of officers and staff. Sd/- ( SUBHASH AGRAWAL ) Commissioner of Customs (NS-III)