About Authorised Economic Operator (AEO) Programme:
- It is a programme under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade.
- It aims to enhance international supply chain security and facilitate movement of legitimate goods.
- Under this programme, an entity engaged in international trade is approved by Customs as compliant with supply chain security standards and granted AEO status & certain benefits.
- An AEO is a business entity involved in the international movement of goods requiring compliance with provisions of the national customs law.
- It is approved by or on behalf of the national administration in compliance with the World Customs Organization (WCO).
- The WCO in June, 2005, with a view to secure the international supply chain, adopted the SAFE Framework of Standards (WCO SAFE FoS).
- AEO is one of the three pillars on which the SAFE FoS is formed.
- AEO helps to build a closer partnership between the customs department and the trade industry.
- WCO SAFE FoS is the basis of the Indian AEO programme.
What is the India AEO programme?
- It was introduced in India by the Central Board of Indirect Taxes and Customs (CBIC) in 2011.
- It is a voluntary programme administered by the CBIC.
- It seeks to provide benefits in the form of simplified customs procedures and faster customs clearances to those business entities that offer a high degree of security guarantees regarding their role in the supply chain.
- Thus, an entity with an AEO status can be considered a reliable trading partner and a secure trader.
- This segmentation approach enables customs resources to focus on less-non-compliant or risky businesses for control.
