Special measures to facilitate MSME for AEO T1 & T2 accreditation - Customs - PUBLIC NOTICE NO. 01/2021-CUSTOMS-AEO.

OFFICE OF THE COMMISSIONER OF CUSTOMS PREVENTIVE) 55-17-3, C-14, 2nd Floor, Road No.2, Industrial Estate, Autonagar - 520 007 Vijayawada - 520 007 C. No. VIII/48/04/2021-CUSTECH II- AEO Date 12.01.2021 PUBLIC NOTICE NO. 01/2021-CUSTOMS-AEO. Subject: Special measures to facilitate MSME for AEO T1 T2 accreditation - Reg. Attention of all the Importers, Exporters, Customs Brokers, Steamer Agents, Custodians/ Customs Cargo Service Providers, Trade Associations / Chamber of Commerce, Members of the RAC/ PGC and the Public is invited to Board s Circular No. 54/2020-Customs dated 15.12.2020 on the above subject. Please refer to the CBEC Circular No. 33/2016 dated - 22.07.2016 as amended, hereinafter referred to as the Master Circular regarding the Authorized Economic Operator (AEO) programme. Para 3. i .9 of the Master Circular states that In particular, the AEO Programme Manager shall take into account the possible difficulties for MSMEs in meeting with these eligibility conditions and criteria under paras 3.3 and 3.5 with a view to make the above AEO Certificates more available to MSMEs. 2. In line with the Prime Minister s Aatma Nirbhar Bharat Abhiyaan to support MSMEs against the challenges of the COVID- 19 pandemic, CBIC has examined the difficulties faced by MSMEs while applying for AEO accreditation. Accordingly, the Board has decided to relax the entire gamut or compliance and security requirements for MSMEs. The relaxation has been carried out to ensure that the MSMEs are facilitated through rationalized compliance requirements (MSME Annexure I 2) and minimum but effective security requirements (MSME Annexure 3). 3. Accordingly, the Board has decided to facilitate MSMEs by further relaxing the current accreditation process and reducing the Compliance burden for their AEO accreditation. The procedural modifications/relaxations for AEO accreditation of MSMEs are as under: i. The eligibility requirement of handling a minimum of 25 documents during the last financial year has been relaxed to 10 documents, subject to handling of at least 5 documents in each half- year period of the preceding financial year (Ref.: Para 3.1.7 of the Master Circular). ii. The requirement for the applicant to have business activities for at least three financial years preceding the date of application has been relaxed to two financial years. (Ref.: Para 3.1 .6 of the Master Circular). iii. The qualifying period for legal and financial compliance has been reduced from the last three financial years to the last two financial years . (Ref.: Paras 3.2 3.4 of thy Master Circular). iv. For AEO TI and T2 accreditation, the present Annexures, i.e. Annexure A, B, C, D, E.I-E.4 have been supplanted with two Annexures viz. MSMF Annexure I and 2. Similar rationalized Annexures 1 and 2 are presently being utilized for AEO T I accreditation only in accordance with the CBIC Circular No. 26/2018- Customs dated 10.08.2018. v . For AEO T2 certification. the present annexures i.e., Annexure E.5.1 -E.5.7 for physical verification have been rationalized to a single annexure viz. MSME Annexure 3. The rationalization has been carried out to ensure that the security requirements for an MSME are objective and cover the minimum verifiavle security criteria.(Ref.: Para 3.5 of the Master Circular). vi. The time limit for processing of MSME AEO TI AEO T 2 application has been reduced to fifteen working days (presently one month) and three months (presently six months) respectively after the submission of complete documents for priority processing by customs zones. vii. The benefit of relaxation in furnishing of Bank Guarantee for AEOs has been further relaxed to 25% from 50% and 10% from 25% of that required to be furnished by an importer/exporter who is not an AEO certificate holder, for MSME AEO TI and MSME AEO T 2 entities respectively (Ref.. Para 3.5 of the Master Circular). 4. The aforestated relaxations shall apply only to an applicant who has a valid MSME certificate from the line-Ministiy. Further, the approved MSME must ensure their continuous MSME status during the validity OE its AEO certification, if granted. 5. Thus, the AEO accreditation for MSMEs now requires submission of only two annexures for AEO TI and three annexures for AEO T 2 applicants respectively. The two common annexures for AEO TI and AEO T2 are : MSME Annexure I (General Compliance), MSME Annexure 2 (Legal, Managing Commercial Records, and Financial Solvency Compliance). Further, the third annexure for AEO T2 is MSME Annexure 3 (Safety and Security Requirements). These annexures have been designed to fulfil the aspirations of simpler application procedure with reduced documentation requirement for AEO accreditation of MSMEs. 6. The Board Circular No. 33/2016- Customs dated 22/7/2016 as amended stands modified to the above extent. 7. Difficulty, if any, faced in the implementation of this Public Notice may be brought to the notice of the undersigned. 8. Action to be taken in terms of decisions conveyed in this Public Notice should be considered as Standing Order for the purpose of officers. (Dr. K.VENKAT RAM REDDY) COMMISSIONER