Three tier AEO programme for importers and exporters (AEO-T1, AEO-T2, and AEO-T3) - CBEC's Customs Manual 2023 - Customs

2 Three tier AEO programme for importers and exporters (AEO-T1, AEO-T2, and AEO-T3): 2.1 On the strength of Circular No. 33/2016-Customs dated 22.7.2016, the earlier existing ACP and AEO programmes were merged into the new AEO programme. For the economic operators other than importers and the exporters, the new programme offers only one tier of certification (i.e. AEO-LO) whereas for the importers and the exporters, there are three tiers of certification (i.e. AEO-T1, AEO-T2 and AEO-T3). Accordingly, henceforth the AEO Programme Manager may, following an application by an economic operator, issue the following Authorized Economic Operator Certificates (hereinafter referred to as AEO certificates) to which the applicant may be eligible as per the eligibility conditions and criteria laid down under paragraph 3 of the said circular: 2.2 AEO-T1 Certificate This certificate may be granted only to an importer or to an exporter. For the purpose of this certificate, (i) The Importer/Exporter should fulfill the criteria mentioned in Circular No. 33/2016-Customs dated 22.07.2016 as amended, and Circular No. 26/2018Cus., dated 10.08.2018. (ii) All other requirements as stipulated in the said circular shall be considered to have been met if the information and documents submitted by the applicant prove the claims of the applicant to the satisfaction of the Zonal AEO Programme Manager. Further, keeping in line with India's Prime Minister's vision of implementing 'Digital India' and ensuring 'Ease of Doing Business,' the first step towards digitization of the Indian AEO Programme was taken with the launching of an AEO Web Application on 30.11.2018. With the launch of the online portal and subsequent issuance of Circular 51/2018-Customs dated 07.12.2018, the entire process of AEO-T1 certification was digitized to allow the application filing, processing digital signed delivery of AEO certification over an online platform. This digitization has provided wholesome support to the applicants by circumventing physical documentation requirements and submitting their application with the click of a button to ensure the highest degree of ease in doing business for the applicant. The processing of AEO T1 via the digital mode is faster as it s completely online. At the same time, it also offers the benefit of tracking the status of application for the applicant and ease of supervision for the customs officials. 2.3 AEO-T2 Certificate This certificate may be granted only to an importer or to an exporter. For the purpose of this certificate, (i) The economic operator should fulfill the criteria mentioned at para 3.1 of the said circular as amended; and (ii) all other requirements as stipulated in paragraphs 3.2, 3.3, 3.4 and 3.5 of the said circular shall be considered to have been met if the claims made in this regard in information and documents submitted by the applicant have been physically verified by the AEO Programme Team by visiting the concerned places/premises of the applicant, on the dates decided by mutual consent by the team and the applicant, and found to be true to the satisfaction of the AEO Programme Manager. 2.4 AEO-T1 AEO-T2 Certificate (for MSMEs)- Vide the Circular 54/2020-Customs dated 15.12.2020 customs has ensured procedural simplification for AEO accreditation of the MSMEs, ensuring increased facilitation through rationalized compliance requirements (MSME Annexure 1 2) and minimum but effective security requirements (MSME Annexure 3). These annexures have been designed to fulfill the aspirations of a simpler application procedure with reduced documentation requirements for MSMEs' AEO accreditation. 2.4.1 This endeavour of CBIC is expected to aid MSMEs by way of the reduced burden of compliance to become an accredited AEO entity and avail benefits of reduced financial security/guarantee. This procedural simplification is expected to bring more MSMEs under the Authorised Economic Operator (AEO) Programme's fold. Their increased share amongst accredited AEO entities is poised to contribute to the Aatma Nirbhar Bharat Abhiyan and ensure supply chain security. 2.5 AEO-T3 Certificate - This certificate may be granted only to an importer or to an exporter. For the purpose of this certificate, (i) The economic operator must have continuously enjoyed the status of AEO-T2 for at-least a period of two years preceding the date of application for grant of AEO-T3 status; or (ii) The economic operator must be an AEO-T2 certificate holder, and its other business partners namely importers or exporters, Logistics service providers, Custodians/Terminal operators, Customs Brokers and Warehouse operators are holders of AEO-T2 or AEO-LO certificate or any other equivalent AEO certificate granted by a foreign Customs.