Amendment in the AEO Programme Circular No. 33/2016 dated 22/7/2016 - Customs - 08/2018

OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS, CUSTOM HOUSE, AHMEDABAD - 380009. Phone: (079) 27582512. Fax: (079) 27582512. Email: [email protected] F.No:-VIll/48-60/Cus/T/2018 Dated:- 08.02.2018 Public Notice: - 08 /2018 Subject: Amendment in the AEO Programme Circular No. 33/2016 dated 22/7/2016-reg. Attention of all concerned is invited towards CBEC's Circular No. 03/2018-Cus dated 7.01.2018, 33/2016 dated 22/7/2016 on AEO Programme and this office Public Notice No 3/2016 dated 02.08.2016. CBEC's vide Circular No. 03/2018-CUs dated 17.01.2018 has dated that consequent to the mid-term review of Foreign Trade Policy (FTP) wherein certain additional benefits have been assigned to AEO Certified entities; there is an urgent requirement for modification in the existing CBEC's Circular No.33/201 6-cus, dated 22.07.2016. 2. Additionally, in order to maximize the reach of this programme, it has been decided by the competent authority to decentralize the processing of AEO applications so as to meet the objective of trade facilitation and ease of doing business. 3. Accordingly, the following modifications have been made in some of the paras of the foresaid circular, which are as below: 1.5. Benefits of an AEO Certificate:- After modification in CBEC's Circular No.33/201 6-cus, dated 22.07.2016 vide Board's Circular 03/2018 dated 17.01.2018, After para 1.5. I x, Para 1.5.I xi has been added, which reads as under: - 1.5. I .Xi. In accordance with the conditions laid down in Para 4.07 A 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 Section 2:-Application for an AEO certificate (b). Earlier Para 2.4 was read as:- The application should be sent to the AEO Programme Manager, Directorate General of Performance Management, Customs Central Excise, 'D' Block, J.P. Bhawan, I.P. Estate, New Delhi - 110002. After modification in CBEC's Circular No.33/2016- cus, dated 22.07.2016 vide Board's Circular 03/2018 dated 17.01.2018, Para 2.4 may be read as The application should be sent directly to the respective jurisdictional Custom Chief Commissioner's office with a copy to the 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 Il, Jeevan Bharti Building, Connaught Place, New Delhi (c). Earlier Para 2.5 was read as:- The Additional Director General, Directorate General of Performance Management, Customs Central Excise, ID' Block, I.P. Bhawan, I.P. Estate, New Delhi - 1 10002 will be the AEO Programme Manager and AEO Programme Team will comprise officers from the Directorate General of Performance Management and its regional offices. After modification in CBEC's Circular No.33/2016-cus, dated 22.07.2016 vide Board's Circular 03/2018 dated 17.01.2018, Para 2.5 may be read as, The Commissioner, Directorate of International Customs, 10th Floor, Tower Il, Jeevan Bharti Building, Connaught Place, New Delhi -1 10001 will be the AEO Programme Manager and AEO Programme Team will comprise officers from the Directorate of International Customs or jurisdictional Custom Zones. Section 3.2 Legal Compliance After modification in CBEC's Circular No.33/2016-cus, dated 22.07.2016 vide Board's Circular 03/2018 dated 17.01.2018, after para 3.2.5, Para 3.2.6 has been added, which reads as under: - (d) 3.2.6 The details of the AEO applicants for legal compliance as per para 3.2. I will be hosted on CBEC Website (Home- Departmental Officers- Systems/ Home - Public Information - Indian AEO Programme), The field formation can directly respond to concerned office (viz. Zonal AEO Cell) with the requisite legal compliance information within 14 days of uploading the details. 3.4 Financial solvency (e) Earlier para 3.4 was read as:- An applicant must be financially solvent during the three financial years preceding the date of application. The applicant should not be listed currently as insolvent, or in liquidation or bankruptcy. Further, the applicant should not have defaulted in payment of due Customs duties during the past three years. The applicants must submit an undertaking regarding its solvency and a Solvency Certificate issued by the Statutory Auditor of the applicant. After modification in CBEC's Circular No.33/2016-cus, dated 22.07.2016 vide Board's Circular 03/2018 dated 17.01.2018, para 3.4 may be read as:- An applicant must be financially solvent during the three financial years preceding the date of application. The applicant should not be listed currently as insolvent, or in liquidation or bankruptcy. Further, the applicant should not have defaulted in payment of due Customs duties during the past three years. The applicants applying for AEO Tl and T 2 status, can either submit a solvency Certificate by a statutory auditor, or a solvency certificate from an independent reputed chartered accountant made on the basis of audited balance sheet of the company, discussing the parameters of solvency (for last 3 Financial Year).Further, the applicants applying for T3 and LO (and T2 applicants in review) must submit a Solvency Certificate from the Statutory Auditor of the applicant. (f) Annexure - E SELF-ASSESSMENT FORM Annexure E.I General Compliance (applicable for grant of AEO-TI, AEO-T2, AEO-T3 and AEO-LO) Annexure E.4 Financial Solvency Earlier Annexure E.4 (g) was read as:- Whether there is solvency certificate issued by the Statutory Auditors lf yes, provide the copy. After modification in CBEC's Circular No.33/2016- Cus, dated 22.07.2016 vide Board's Circular 03/2018 dated 17.01.2018, AnnexureE.4 (g) may be read as:- Whether there is solvency certificate issued by the Statutory Auditor or Independent reputed Charter Accountant? Provide the copy of the same . (g) Annexure-E.2 Legal Compliance:- Earlier Annexure E.2(b) was read as :- Whether any SCN has been issued during last three financial years involving fraud, forgery, outright smuggling, clandestine removal of excisable goods or cases where Service Tax has been collected from customers but not deposited to the Government. If yes, please indicate the details in 'Remarks' column. After modification in CBEC's Circular No.33/2016-Cus, dated 22.07.2016 vide Board's Circular 03/2018 dated 17.01.2018, Annexure E.2 (b) may be read as. E.2 (b1): Have any SCNs been issued against you during last 3 F.Y.S If yes, please indicate the details in 'Remarks' column. E.2 (b2): Whether any SCN has been issued during last three financial years involving fraud, forgery, outright smuggling, clandestine removal of excisable goods or cases where Service Tax has been collected from customers but not deposited to the Government. If yes, please indicate the details in 'Remarks' column. (h) Section 5 Post-Certification Provisions Earlier Para 5.1 was read as:- The validity of AEO certificate shall be two years for AEO-TI, three years for AEO-T2, and five years for AEO-T3 and AEO-LO. After modification in CBEC's Circular No.33/2016-cus, dated 22.07.2016 vide Board's Circular 03/2018 dated 17.01.2018, Para 5.1 may be read as The validity of AEO certificate shall be three years for AEO-Tl, and AEO-T2, and five years for AEO-T3 and AEO-LO. (i) APPLICATION FORM FOR GRANT OF AEO STATUS (contains ten annexures A, B, C, D, E.I to E.5 and F) (Please fill-up the annexures as may be applicable to the applicant) Earlier Annexure A(4) was read as:- Address: (If there are more than one site/ location, a separate list should be attached for all sites/ locations) After modification in CBEC's Circular No.33/2016-Cus, dated 22.07.2016 vide Board's Circular 03/2018 dated 17.01.2018, Annexure A (4) may be read as:- A (4) Address: (lf there are more than one site/location, a separate list should be attached for all sites/ locations). A 4(a): Whether applicant is a manufactures or trader. A 4(b): If applicant is a manufacturer, what are the main items of manufacturing? A (c): The economic sector of functioning of the applicant (Eg. Auto/ Pharma/ Fertilizer et al) 4. The Board Circular No. 33/201 6-Custorns dated 22/7/2016 stands modified to above extent. 5. Difficulties faced, if any, may be brought to the notice of this office. [Bharati Chavan] Principal Commissioner Customs, Ahmedabad