Authorized Economic Operator (AEO) programme for implementation - Customs - PUBLIC NOTICE NO. 12/2013

OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE: PORT AREA: VISAKHAPATNAM -530 035 F.N0.S22/08/2013-SllB Date: 23.07.2013 PUBLIC NOTICE NO. 12/2013 Subject: Authorized Economic Operator (AEO) programme for implementation - Reg. Attention of the Exporters, Importers, Custom House Agents, Stake Holders, Steamer Agents, the Trade and all concerned is invited to Board's Circular No. 28/2012- Customs, Dated 16-11-2012 issued by the Central Board of Excise Customs, New Delhi vide F.No.450/179/2009-Cus.IV (Pt), which deals with the Scheme of Authorised Economic Operator (AEO) Programme and revised guidelines thereon . 2. The trade and all concerned are hereby informed that the Cent-al Board of Excise Customs, New Delhi vide Circular No. 28/2012-Customs Dated 16-11-2012 has issued revised AEO programme. The Board has approved the following major changes in the AEO Programme. (i) Inclusion of stringent requirements in regard to Business partner security, procedural security, etc. (ii) Inclusion of authorised couriers and custodians in the AEO Programme. (iii) Automatic disqualification on non-furnishing of the information by the applicant. (iv) Non-requirement of the compliance records of advocates directly employed by the applicant. (v) Outreach of AEO Programme by organizing workshops etc. (vi) The time limit of 90 days should be reckoned from the date of fumishing of complete information. (vii) In regard to security seals, in case it is not possible to procure and use PAS / ISO 17712 seals for air consignments / courier consignments any international seal compatible with standards of PAS / ISO 17712 may be used. However in case of maritime containerized cargo only PAS / ISO 17712 seals shall be used. The officers carrying out validations under AEO Programme should carefully ascertain this aspect. 3. The Central Board of Excise Customs, New Delhi (Board) also decided that the benefits to various types of approved AEOs would be as under: A. For Importers: (a.) AEO importers would be entitled to facilitation levels that are higher than that for an ACP importer. (b.)AEO importers shall be given the benefits of furnishing of reduced bank guarantee, wherever applicable, not exceeding 5% of the bond amount. All past Circulars regarding furnishing of bank guarantee by importers stand modified to this extent. B. For Exporters (a) AEO exporters shall be given benefits of reduced percentage of examination. At present the examination of export consignment is governed by provisions contained in the Board Circular No. 6/2002- Customs dated 23.01.2002 which stands modified for AEO exporters to the extent indicated in the table below. Export under Drawback by AEO exporters: Sl.No. Category of Exports Scale of Examination Export consignments shipped to sensitive places viz. Dubai, Sharjah, Singapore, Hong Kong and Colombo Others (i) Consignments where the amount involved is ₹ 5 lakh or less 10% 2% (ii) Consignments where the amount of drawback involved is more than ₹ 5 lakh 25% 5% (iii) Consignments where the FOB value is under EPCG / DEEC is ₹ 10 lakh or less 10% 2% (iv) Consignments where the FOB value is under EPCG / DEEC is more than ₹ 10 lakh 20% 5% C. For Logistic Service Providers: (a) AEO logistic service providers shall be given benefits of waiver of bank Guarantee in case of transhipment of goods under Goods Imported (Condition of Transhipment) Regulations, 1995. Further they shall be given the facility of execution of a single running bond. Board Circular No 45/2005-Cus. dated 24.11.2005 stands modified accordingly. (b) AEO logistic service providers shall be given the facility of not taking permission on case to case basis in case of transit of goods. In case of international transshipped cargo (Foreign to Foreign), for the pre-sorted containers wherein cargo does not require segregation. AEO Logistics Service providers can effect ramp to ramp or tail to tail transfer of cargo without Customs escorts. Board Circular No.8/2011 -Customs dated 28.01.2011 stands modified to this extent. D. For Custodians or Terminal Operators (a) AEO Custodians shall be given benefits of waiver.of bank Guarantee required under Handling of Cargo in Customs Area Regulations 2009. (b) AEO Custodians shall also be given the facility of extension of approval under regulation the Handling of cargo in Customs Area Regulation 2009 for longer period of ten years at a time. E. For Customs House Agents: (a) AEO Customs House Agents shall, under Regulation 11 of Customs House Agents Licensing Regulations (CHALR) 2004 be given benefit of extended validity period of licenses granted under regulation 9 till the time they hold valid AEO authorizations. (b) Fee for renewal of a licence under sub regulation (2) of regulation 11 of CHALR, 2004 shall be exempt for AEO Custom House Agents. F. For Warehouse Operators: (a) AEO Warehouse Operators are accorded faster approval for new warehouses. (b) AEO - Warehouse Operator shall be given benefits of reduced bank guarantee to the extent of 5% of the duty liability in respect of individual consignments of sensitive goods Ito be warehoused. Board Circular No 99/95-Cus. dated 20.09.1995 shall be modified to this extent. (c) In case of goods which are not likely to deteriorate, the warehousing period under section 61 of the Customs Act, 1962 may be extended by Commissioner of Customs, for a period not exceeding six months and by the Chief Commissioner of Customs for such period as he may deem fit. Board Circular No. 47/2002-Cus., dated 29.7.2002 prescribes that the Chief Commissioner at a time may not grant extension to the warehousing period beyond 3 months and in certain exceptional circumstances not beyond six months. In case of AEO Warehouse Operators, the Chief Commissioner of Customs may grant extension up to a period of six months at a time. Board Circular No.47/2002-Cus. dated 29.7.2002 stands modified to this extent. (M.P NUSWAMY) COMMISSIONER OF CUSTOMS