Special measures to facilitate MSME for AEO Accreditation

 1. Please refer to the CBEC Circular No. 33/2016 dated 22.07.2016 as amended, hereinafter referred to as the "Master Circular" regarding the Authorised Economic Operator (AEO) programme. Para 3.1.9 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 eligibilities conditions and criteria under paras 3.3 and 3.5 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 of 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 1 & 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 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 the Master Circular).

 

iv. For AEO Tl and T2 accreditation, the present annexures i.e., Annexure A, B, C, D, E.I-E.4 have been supplanted with two annexures viz. MSME Annexure I and 2. Similar rationalized annexures 1 and 2 are presently being utilized for AEO Tl accreditation only in accordance with the CB1C 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 verifiable security criteria. (Ref.: Para 3.5 of the Master Circular).

 

vi. The time limit for processing of MSME AEO Tl & AEO T2 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 the 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 Tl and MSME AEO T2 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-Ministry. Further, the approved MSME must ensure their continuous MSME status during the validity of its AEO certification, if granted.

 Source: Cir. 54/2020-Cus Dt: 15.12.2020

Deferred Duty Payment

Q1. What is deferred duty payment?

Ans: It is a mechanism for delinking duty payment and Customs clearance. It is based on the principle 'Clear first-Pay later'. The aim is to have a seamless wharf to warehouse transit in order to facilitate just-in-time manufacturing.

As a part of the ease of doing business focus of the Government of India, the Central Board of Indirect Taxes and Customs (CBIC) has rolled out the AEO (AUTHORIZED ECONOMIC OPERATOR) programme. It is a trade facilitation move wherein benefits are extended to the entities who have demonstrated strong internal control systems and willingness to comply with the laws administered by the CBIC.

Under the aegis of the flagship AEO scheme, the Government of India has notified the DeferredPayment of Import Duty Rules, 2016 (hereinafter referred to as the Rules).

Q2. Who is eligible for availing of this scheme?

Ans: This benefit is currently being extended to importers holding AEO T-2 or T-3 status.

Q3. If I am an eligible importer and have obtained my AEO registration certificate from the AEO Program Manager, how can I avail the facility of deferred payment of duty?

Ans: An intimation to the AEO programme manager with a copy to Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, having jurisdiction over the port of clearance, shall be considered as an intimation by an eligible importer of his intention to avail the said benefit.

As per rule 4 of the Deferred Payment of Import Duty Rules, an eligible importer who intends to avail the benefit of deferred payment shall intimate to the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, having jurisdiction over the port of clearance, his intention to avail the said benefit. Intimation addressed to the AEO Programme Manager with a copy to the Principal Commissioner(s) of Customs or the Commissioner(s) of Customs, as the case may be, having jurisdiction over the port(s) of clearance shall be considered as intimation by an eligible importer of his intention to avail the said benefit.

Q4. Where do I get registered?

Ans: Every importer certified as AEO-T2/AEO-T3 shall obtain ICEGATE Login which is essential to avail benefits envisaged in the Duty Deferment Scheme. A nodal person needs to be appointed by the AEO for authenticating all the customs related transactions on behalf of the AEO. The contact details of AEO nodal person shall also be provided during registration for ICEGATE login to ensure that the information reaches in time at their registered mail and mobile for authentication. Any change in these details should be updated immediately. Caution needs to be exercised in the course of this process to ensure that the benefit does not get misused.

Q5. What is the procedure to obtain ICEGATE registration?

Log on to www.icegate.gov.in and then go to 'Login / Sign Up' and follow the steps for registration. A 'New Registration Demo' PPT, and FAQs / Advisory on New Registration under the 'Downloads' Tab may be referred for assistance. For further assistance, ICEGATE helpdesk on 1800-3010-1000 or email icegate.helpdesk@icegate.gov.in may be contacted.

Q6. Once registered, what is the process to avail the benefit of deferred duty?

Ans: The eligible importer, who intends to make deferred payment, or his authorised representative, shall indicate the same using flag "D" in the Payment Method column of each Bill of Entry filed. In his/her ICEGATE Login, the AEO Nodal person will be able to acknowledge such intent of availing the facility of deferred duty payment by authenticating using One Time Password (OTP) sent to his registered e-mail address. The Nodal person would be able to authenticate multiple Bills of Entry at one go. Only on such authentication by the AEO, customs clearance would be provided for the consignment under deferred payment of duty Rules.

Q7.  What is the pre conditions?

Declare D in the Bill of entry (B/E). Further, there should be no default in 90 days/no arrear. In case of default, this facility shall not be restored unless the eligible importer has paid the duty in full along with the interest.

Q8. What are the due dates for payment of duty?

Ans: As per rule 5 of DeferredPayment of Import Duty Rules, 2016.

B/E from 1-15th day of any month	17th of the month
B/E from 16th-last day of month except March	2nd day of the following month
B/E from 16-29 March	31 March
B/E from 30-31 March	02 April

 

Q9. What will be the due date when the due date falls on a holiday?

Ans: As per rule 5 of said rules. It would be the next day following the holiday.

Q10. What happens if I do not pay duty on or before the due date?

Dual consequence shall arise if the duty is not paid within the time limits specified. Firstly, interest will become due on the duty; Secondly, this shall also be counted as a default in terms of the Rules. If a subsequent default in payment occurs, the AEO shall automatically be reverted to transaction-wise payment and will need to pay the duty in the bank before taking clearance of his goods. That is, the importer shall not be allowed to clear the next consignment without payment of duty.

Q11. If the deferred payment facility has been withdrawn due to default in duty payment, how can such suspension are revoked.

 Ans: The suspension would be revoked after the ninety days of last but one default, if all the dues have been paid by AEO.

Q12. Who will provide the password?

 Ans: The password for the ICEGATE login would be sent to the registered email of the person registering with ICEGATE. Facility of reset of password is also provided at https://www.icegate.gov.in/iceLogin/forgotPwdAction

Q13. Can an importer delegates this task to his subordinates?

Ans: Yes. However, as live consignments are likely to get held up if OTP authentication by the concerned person is not provided speedily, adequate care may be taken while doing so.

Q14. Is it compulsory to pay only on a deferred basis for all my consignments? Can I clear any consignments by paying duty for each transaction?

 Ans: Importers eligible for this scheme have the flexibility to pay transaction-wise (i.e. BE wise) for any consignments, as well as on a consolidated basis for sets of BEs at any time during the specified period. Duty can be paid even before the due date at their convenience. For example, for 10 BEs filed during the period 01.12.2016 to 15.12.2016, the importer may pay duty for #1,2,5,7 on 10.12.16; for BE 3 at the time of clearance itself; and for BE 4,6,8,9,10 on 16.12.2016.

Q15. Will a consolidated challan be generated for payment?

 Ans: No, to ensure flexibility, challans continue to be generated BE-wise, with the option to select multiple challans for consolidated duty payment.

Q16. Can the bills of entry (BE) be sorted port wise?

 Ans: Yes, the AEO can select BE port-wise and then authenticate the BEs either separately in groups for availing of the Deferred Duty facility.

Q17. What is the specifications of the digital signature for this scheme?

 Ans: A DSC required would be a Class III signature.

Q18. Who can I contact for further support?

 Ans: ICEGATE helpdesk may be contacted for any more queries or the AEO program manager may also be contacted for support.

Call on ICEGATE helpdesk 1800-3010-1000 or email to icegate.helpdesk@icegate.gov. in

Guidelines for Direct Port Delivery (DPD) Registration

Inclusions: The following categories of importers may opt for DPD facility-

• Importers who have already been accorded either AEO Tier I, II or III status;
• Importers with a clear track record of compliance and an import volume of 25 Full Container Load (FCL) TEUs through this port in the preceding financial year;
• Importers falling under the aforesaid categories shall furnish information prescribed in DPD application. While in the second criterion is desirable, Pr. Chief Commissioner of Customs, JNCH may, however, in deserving cases of importers, relax the TEU benchmark. Such importers could be the ones whose imports have enjoyed a consistent pattern of customs risk facilitation/who provide an assurance that they would be in a position to pick up containers directly from the terminal. This dispensation may be particularly considered for the MSME sector.

Exclusions: The following categories of importers would be excluded from DPD facility

• Importers against whom a case of mis-declaration of description of goods or of concealment/diversion of imported goods/evasion of duty has been made in the preceding five years;
• Importers facing prosecution proceedings in a matter under the Customs Act, 1962;
• Those importing goods that are subjected to 100% examination in terms of extant policy;
• Importers importing mostly LCL consignments.

Conditions: The facility of DPD shall be extended only to such consignments-

• Which have either been fully facilitated or not subjected to examination; and
• Importers open a PD account with the terminals and arrange for their own transport to take delivery of containers from the terminal; and
• Any other procedural formality prescribed by the zone for better administration of DPD scheme

Self-Sealing Procedure (SSP)

Self-Sealing Procedure (SSP) shall be followed subject to the following;

1.   Eligibility: The exporters who were availing sealing at their factory premises under the system of supervised factory stuffing, will be automatically entitled for self-sealing procedure. All exporter AEOs will also be eligible for self-sealing.

2.   Premise Detail: The exporter shall be under an obligation to inform the details of the premises whether a factory or warehouse or any other place where container stuffing is to be carried out, to the jurisdictional customs officer.

3.     GST Compliant: The exporter should be registered under the GST and should be filing GSTR1 and GSTR2. Where exporter is not a GST registrant, he shall bring the export goods to a Container Freight Station/Inland Container Depot for stuffing and sealing of container.

4.   Permission for SSP: Any exporter desirous of availing this procedure shall inform the jurisdictional Custom Officer, at least 15 days before the first planned movement of a consignment from his/her factory/ premises, about the intention to follow self- sealing procedure to export goods from the factory premises or warehouse. The jurisdictional Superintendent or Inspector of Customs shall inspect the premises with regard to viability of stuffing of container in the premises and submit a report to the jurisdictional DC/AC of Customs within 48 hours. The jurisdictional DC/AC shall forward the proposal to the Principal Commissioner/Commissioner of Customs who would grant permission for self- sealing at the approved premises. Once the permission is granted, tine exporter shall furnish only intimation to the jurisdictional Superintendent or Customs each time self-sealing is carried out at approved premises. The intimation, in this regard shall clearly mention the place and address of the approved premises, description of export goods and whether or not any incentive is being claimed.

Note: Where the visit report of the Superintendent or an Appraiser or an Inspector of Customs regarding viability of the stuffing at the factory/ premises is not favorable, the exporter shall bring the goods to the Container Freight Station /Inland Container Depot/Port for sealing purposes.

5. Validity of SSP: Self-Sealing permission once given by a Principal Commissioner/Commissioner of Customs shall be valid for export at all the customs stations. The customs formation granting the self- sealing permission shall circulate the permission along with GSTIN of the exporter to all Custom Houses/Station concerned.

6.  Transport document for movement of self-sealed container by an exporter from factory or warehouse shall be same as the transport document prescribed under the GST Laws. In the case of an exporter who is not a GST registrant, way bill or transport challan or lorry receipt shall be the transport document.

7.    The exporter shall seal the container with the “RFID tamper proof one-time-bolt seal” of standard specification conforming to ISO 17712:2013 (H) and ISO/IEC 18000-6 Class 1 Gen 2 which is globally accepted in industrial applications and can be read with the use of UHF (i.e. 860 MHz to 960 MHz) Reader-Scanners. The electronic seal should have a unique number which should be declared in the Shipping Bill. Before sealing the container, the exporter shall feed the following data such as

·        IEC (Importer Exporter Code)

·        Shipping Bill Number

·        Shipping Bill Date

·        e-seal number

·        Date of sealing

·        Time of sealing

·        Destination Customs Station for export

·        Container Number

·        Trailer- Truck Number

It is further clarified that the information need not be mounted "in the electronic seal" but tagged to the seal using a 'web / mobile application' to be provided by the vendor of the RFID seals. Data once uploaded by the exporter should not be capable of being overwritten or edited. All vendors will be required to transmit above information to RMD and the respective destination ports / ICDs of export declared by the exporter.

8.    All consignments in self-sealed containers shall be subject to risk based criteria and intelligence, if any, for examination / inspection at the port of export. At the port/ICD as the case may be, the customs officer would verify the integrity of the electronic seals to check for tampering if any en-route. The Risk Management System (RMS) is being suitably revamped to improvise the interdiction/ examination norms. However, random or intelligence based selection of such containers for examination/scanning would continue.

SSP/FSP Registration to Customs EDI Systems

Self Sealing Permission and Factory Stuffing Permission obtained by the Exporters are to be registered with the Customs EDI Systems. 

The procedure for registration for Self Sealing of export containers are as follow:

1.   Exporters who are having AEO status and already availing the self-sealing procedure will have to submit a self-attested copy of AEO registration and self-sealing permission and follow the RFID e-Sealing procedure. They are also to be registered with EDISystems, Customs.

2.  Exporters who were availing the factory/warehouse stuffing permission under Central Excise supervision would be entitled for self-sealing procedure and would have to follow the RFID e-Sealing procedure and have to register with EDI Systems, Customs.

They are required to submit the following documents:-

a.    Request letter from Exporter.

b.  Authorization letter from the Exporter in case the document are submitted by a representative or a Custom Broker.

c.   Self-Certified Copy of FSP/Self SealingPermission issued by JNCH.

d.   Self-Certified copy of IEC/PAN/GSTN Registration No.

e.  Specimen Signature with photograph of authorized signatories duly attested by Director/Partner/Proprietor.

Note: Exporters who procured a self-sealing permission from the other ports/Custom Stations & ICDs and desire to exports from JNPT Port are required to submit a self-attested copy of self-sealing permission which shall be registered with EDI Systems through FSP Cell of JNCH.

A single Self Sealing Registration will be granted to the Exporter for stuffing at a particular premises and the Exporter will have to apply separately for each additional stuffing premise, in case SSP is sought for stuffing at multiple premises supervised by authorized persons at each particular premise, respectively.

Cargo Security

Cargo Security - Why?

Routines for Access to Cargo Units

• Lack of adequate procedures for access to cargo units.
• Unauthorized access to cargo units.

Ensuring the Integrity of Cargo Units

• Tampering with cargo units.
• Use of hidden places in cargo units for smuggling purposes.
• Incomplete control of the cargo units.

In case of Intrusion and/or Tampering with Cargo Units

• No proper action if unauthorized access or tampering has been discovered.

Cargo Security - Solution

Routines for Access to Cargo Units

• Implement procedures governing access to shipping areas, loading docks and cargo areas

Ensuring the Integrity of Cargo Units

• Cargo units are placed in a secure area (e.g. a fenced area, an area with video surveillance or monitored by security personnel) or other measures are taken to assure the integrity of the cargo unit
• Regular reconciliation between register and seals (ISO/PAS 17712 compliant) held.
• Seven Point Inspection process

In case of Intrusion and/or Tampering with Cargo Units

• Procedures for recording, investigating and taking remedial action when unauthorised access or tampering has been discovered.

Information Security

Information Security – Protection of Computer Systems

• Unauthorised access and/or intrusion to the economic operator's computer systems and or programs
• Deliberate destruction or loss of relevant information

Information Security – Documentation Security

• Misuse of the economic operator's information system to endanger the supply chain.
• Deliberate destruction or loss of relevant information

Information Security – Solution

IT security Policy, Procedures & Standards - ISO 27001 certification

• Information Security Assessment by Information security officer

Procedures for granting Access/ withdrawal rights to Authorized Persons;

• Password protection on all PC Stations and possibly on important programmes
• Limit access to  data, server rooms on need to know basis to authorised persons;
• Perform tests intrusion (unauthorized access) at regular intervals and record

Using encryption software where appropriate;

• Firewalls;
• Anti-virus protection;

Implement procedures for dealing with Security Threat incidents.

Data Security

Requirements for Back-up, Record Keeping /Archiving

• Inability to readily undertake an audit due to the loss of information or bad archiving.
• Lack of back-up routines
• Lack of satisfactory procedures for the archiving of the applicant’s records and information.
• Deliberate destruction or loss of relevant information

Back-up, Record Keeping /Archiving - Solution

IT security - ISO 27001 certification

Procedures for back-up, recovery and data protection against loss;

• Backups should be done daily, on either incremental or full basis.
• Full backups should be done at least once a week.
• Min. of three latest backups should be available at all times.
• Backups are preferably done remotely through an electronically secure method on a storage facility located at least 300 meters away. 
• Encryption key should also be backed up and stored away from the storage facility.

Contingency plans to cover systems disruption/failure

Provision of Data Classification scheme

Customs Routines - Why ?

Customs Routines - Why?

Ineligible use of Customs Routines leads to incomplete and incorrect

• Customs Declarations and 
• Information about other customs related activities.
• Classification of the goods -> Tariff code -> Customs value.

Lack of routines for informing customs authorities about identified irregularities in compliance with customs requirements.

Lack of control while representing through Third Parties

Licenses for import/export connected to Commercial Policy measures


Customs Routines - Solution

Setting up formal procedures to verify the accuracy of customs data leading to customs value for specific clients with regards to

1. Classification of goods, origin, valuation method, etc.
2. Standard procedures to record licenses, its registration and validity
3. Procedures to ensure the use of goods are consistent with the license
4. Any preferential treatment under a convention or international agreement;
5. Any notification of any irregularities to customs authorities.

Routines to check third parties work with regards to above points.
 Note: It is not sufficient to rely completely on outsourced services.

• Verification of the competence of the representative used;
• Specific contractual provisions to control customs data in case of outsourcing for completing customs declarations

Standards for Reporting Irregularities

Accounting System - Why?

Computerized Environment

• Inconsistency with GAAP (Generally Accepted Accounting Principles)
• Incorrect and/or incomplete recording of transactions in the accounting system.

Need of Integrated Accounting System

• No historical data available and lack of

1. Reconciliation between stock and accounting records
2. Segregation of duties between functions
3. Physical or electronic access to customs

• Complex management system with complex structured offers possibilities 

1. to cover-up illegal transactions
2. Breaching the audit-ability

Integrated Accounting System - Accounting Solution

Develop interface between customs clearance and accounting software to avoid typing errors;

• Allow cross checks of information

Implement an Enterprise Resource Planning (ERP);

• Develop training and prepare instructions for the use of the software;

List of AEO documents required for AEO Application

During the preliminary scrutiny of AEO application, the following necessary supporting document / Standard Operating Procedure (SOPs) are to be enclosed with AEO application:

i. Duly filled and signed Annexure A

ii. Copy of IEC with annexures,

• Copy of PAN,
• Copy of GST,
• Copy of Certificate of Incorporation / Registration Certificate / ownership agreement

iii. The details of Process Map of import/export are not submitted as prescribed in Annexure-C.

iv. Details of all the Branches / Offices of the entity firm & their Site plan / SOP as prescribed in Annexure - D.

v. Duly filled and signed Annexure E.1

vi. General Compliance

1. List of Directors and Company Secretary.
2. Cancelled Cheque /Bank Statement
3. List of B/Es or S/Bs in the past financial year.
4. Balance Sheet/Annual Reports for Last three financial year.

vii. Duly filled Annexure E.2 with details of legal compliance

viii. SOP for Legal Compliance demonstrating: (E.2.v)

1. Procedures in place to identify and disclose any irregularities or errors to the Customs authorities or, where appropriate, other regulatory bodies.
2. Taken appropriate remedial action when irregularities or errors are identified.

ix. Duly filled Annexure E.4 with details of solvency.

x. Financial Solvency

1. Solvency Certificate from the Statutory Auditor or from CA for last three years. 
2. Undertaking regarding Solvency of the Entity for last three years.

xi. Duly filled Annexure E.3 with details and following documents.

i. Documented Process / SOP for Maintenance and Archiving of records. E.3.d

ii. Document related to Accounting Standards/Principles, or Annual Report E.3.a

iii. Organization Chart/ Administrative setup corresponding to type/size of Business E.3.b

iv. SOP/documented process for handling of licences and authorizations E.3.c

v. SOP/documented process for verifying accuracy of Customs declaration E.3.f

vi. SOP in respect of Information technology security and safety measures in place E.3.g

vii. SOP/Documented process in respect of employee training and awareness to tackle compliance difficulties and make contacts with Customs Authorities E.3.e

If approved the above marked deficiencies may be intimated to the applicant via e-mail for submission of required documents and further processing of the application.

In case application is for AEO-T2 / AEO-LO then also enclose following:-

viii. The details of Security Plan are not submitted as prescribed in Annexure - B.

ix. SOP for Cargo Security. It may cover safety and security of the cargo during packing, storage, 7 points inspection of containers, sealing with PAC/ISO 17712 seals, etc.

x. SOP for Procedural Security which are related to the procedures of Cargo Movement, Documents Management, Record Management.

xi. SOP for Conveyance Security. It may cover integrity and security of conveyance used for transportation of cargo, pre-determined route follow, random route check, etc.

xii. SOP for Premises Security.

xiii. SOP for Personnel Security. It may cover recruitment / termination, antecedent verification, types of employees i.e. permanent / contractual / hired, etc.

xiv. Details of outsourced activities like Housekeeping, Security etc and copy of contracts of these service providers.

xv. SOP related to Business Partner Security. Further, details of the Business Partners, Transporters and Freight Forwarders who handle / clear the Cargo of export / import and copies of contracts of these Business Partners.

xvi. KYC norms and its SOP. Sample copy of records maintained for KYC norms.

xvii. Write up on IT functioning and data security. SOP for document storage in 'Hard copy' and data storage server and backups.

These above listed documents / SOPs is requested to be submitted to customs office to process AEO application. If required, you may contact on +91 836 956 3294 or write on mail@localkonnect.com for any query/ information.

AEO Benefit

The scope of the benefits to the AEOs based on their categories would be as mentioned below:

AEO Benefit - for AEO-T1, AEO-T2, AEO-T3

Advantages for	AEO - T1	AEO - T2	AEO - T3
Level of Facilitation on  their consignments	High	Higher than AEO-T1	Higher than AEO-T2 (Only  Risk based interventions)
Trade Facilitation	No	Mutual Recognition Agreement (MRA)
Seal Verification / Scrutiny of documents  and consignments	DPE/DPD depends on No. of Containers	Out of Charge (OOC) or Let Export Order (LEO) may be given without any scrutiny by officers
Self - sealing on export	No	Allowed, No need  of permission on case to case
Scanning Container	Scanning as per order	Scanned on priority	Exempted on Scanning2
Access through ICEGATE for  BEs/SBs	Separately	Consolidated import/export data
Declarations &  Supporting documents	Physical Form	Paperless
Process of Assessment and/or Examination of BEs/SBs		On priority basis	On Self-certified copies of documents; (No Original Req.)
Application for an Advance Authorisation	On self declaration and self ratification basis; where  SION has been notified for used as additional inputs in the manufacturing process on export product
ID Card	Hassle Free Entry to Custom Houses, CFSs , ICDs
Space allocation at Custodian’s	Separate
MRP stickers pasting Facility	No	Available at their premises
Deferred payment of Duty	No	Yes, from a notified date
Drawback disbursal	As per order	within 72 hours of EGM submission
Time of Refund/Rebate of Duty  and Tax after documents submission	As per order	within 45 days	within 30 days
Quantum of the Bank Guarantee1	50%	25%	Exempted from B.G.
MOT charges	Nil
Clearance Facility	24 x 7 (on request)
Tax Investigations	Within 6 - 9 months
Dispute Resolution at Adjudication Level	Within 6 months
SVB Proceedings	As per order	Time bound disposal
Onsite PCA	Once in 2 years	Once in 3 years	On request only
Client Relationship Manager”(CRM) Support	No	Yes (DC/AC Level)
Note: Exemption from B.G. Would not be applicable in cases of provisional release of seized goods. No Scanning except on the basis of specific intelligence (top most priority will be given)

AEO Benefit - Logistic Service Providers

• Waiver of bank Guarantee in case of trans-shipment of goods under Goods imported (Condition of Trans-shipment) Regulations, 1995.
• Facility of Execution of running bond.
• Exemption from 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, ramp to ramp or tail to tail transfer of cargo can be effected without Customs escorts.

AEO Benefit - Custodians or Terminal Operators

• Waiver of bank Guarantee under Handling of cargo in Customs Area Regulations 2009.
• Extension of approval for custodians under regulation 10(2) of the 'Handling of cargo in Customs Area Regulation 2009 'for period of 10 years.

AEO Benefit - Customs Brokers

• Waiver of Bank Guarantee to be furnished under regulation 8 of the CBLR, 2013.
• Extended validity (till validity of AEO status) of licenses granted under regulation 9 of the CBLR, 2013.  System Manager to incorporate date of validity of AEO from time to time in the System Directory
• Waiver from fee for renewal of license under sub regulation (2) of regulation 11 of CBLR,2013.

AEO Benefit - Warehouse Operators

• Faster approval for new warehouses within 7 days of submission of complete documents
• Waiver of antecedent verification envisaged for grant of license for warehouse under circular 26/2016
• Waiver of solvency certificate requirement under circular 24/2016
• Waiver of security for obtaining extension in warehousing period under circular 21/2016
• Waiver of security required for warehousing of sensitive goods under circular 21/2016