Authorized Economic Operator (ADO) program - creation of AEO cell - Customs - PUBLIC NOTICE No. 07/2018

OFFICE OF THE COMMISSIONER OF CUSTOMS, NEW CUSTOM HOUSE, KANDLA-370 210 F. No. S/20-75/AEO/AG/2017-18 Dated: 15/02/2018 PUBLIC NOTICE No. 07/2018 Subject: - Authorized Economic Operator (ADO) program - creation of AEO cell - M/reg. Attention of all Importers/ Exporters, Custom Brokers, Members of the Trade and all other concerned is invited to the Board Circular No. 33/2016-Customs, dated 22.07.2016 and Circular No. 3/2018-Customs, dated 17.01.2018 , on the subject matter. 2. The authorized Economic Operator (AEO) program works on modern supply chain security standards with close partnership between Customs and the trade. The AEO program seeks to provide tangible benefits in the form of faster cargo 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. 3. The objective of the AEO Program 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 program 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- T 1, AEO-T2 and AEO-T3). Eligibility conditions and criteria are laid down under the aforesaid Board Circulars. 4. 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 (DPL)) of imports to ensure just-in-time inventory Management by manufacturers - clearance from wharf to warehouse for AEO T I, T2 and T3. ii. Inclusion of Direct Port Entry for factory stuffed containers meant for export by AEOs for AEO Tl, 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 5. In view of the above, all the Importers/ Exporters, Custom Brokers, Members of the Trade and all other concerned 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 Custom House (Addressed to the Commissioner of Customs, Custom House Kandla) with a copy to AEO Programme Manager, Directorate of International Customs or in case Of any doubt, to the AEO Programme Manager, Directorate Of International Customs, 5th Floor, Tower Il, Jeevan Bharti Building, Connaught Place, New Delhi - 110001 as per the procedure prescribed under the aforesaid CBEC Circulars. 6. Taking further step towards trade facilitation, it has been decided to form a AEO's Cell which can be contacted for any clarification. The details Of the AEO's Cell are as under:- Address :- Office of the Commissioner of Customs New Customs House, Kandla - 370210 Phone No. 02836-271466 Team of the Officers :- Sr. No Designation Section CH, Kandla 1 Asstt. De u Commissioner AG Section, CH Kandla 2 Superintendent AG Section, CH, Kandia 3 Preventive Officer AG Section, CH, Kandia 7. Customs House Kandla has nominated the Assistant / Deputy Commissioner, Appraising General, Custom House Kandla as Client Relationship Manager (CRM) for all the AEO entities in the jurisdiction of Kandla Custom House and the same has been uploaded on Kandla Custom website for easy access. 8. Difficulty faced, if any, may be brought to the notice of the undersigned. (Sanjay Kumar Agarwal) Commissioner