Authorized Economic Operator is a concept developed under the SAFE Framework of Standards by the World Customs Organization as a voluntary compliance initiative about giving security to an international supply chain while simultaneously facilitating legitimate trade.
At YKG Corp., we make the AEO registration process smooth and hassle-free, guiding you through each step so your business can fully reap the accruable benefits from this prestigious certification.
AEO Registration Process in India
- The process of AEO registration is comparatively easy but highly documentary-based and customs regulatory compliance-oriented.
- Self-Assessment: The applicant's business premises are first required to assess their current standing regarding customs, security, and financial standards prescribed by CBIC to proceed with the application.
- Submission of Application: The application is to be made in Annexure A of the AEO Programme, relating to customs procedure security arrangements and financial history.
- Submission of Documents: Necessary documents comprising previous imports and exports, records of the security measures, and financial stability of the firm.
- Verification and Audit: Customs will verify that the applicant maintains set AEO standards. It will include physical verification of the security protocols adopted, necessary documents, and financial books of the concern.
- Granting of AEO Status: After physical verification, the AEO status is granted to the business, which also gets listed in the AEO registry. The business shall be issued a certificate that shall facilitate its receiving different benefits.
Documents Required for AEO Registration
A few important documents are required for AEO application, authenticating customs, security, and financial compliance of the business. A list of basic documents to be presented for AEO registration is mentioned below:
1. Company Registration Documents: COI - Certificate of Incorporation or license to do business
2. Financial Statements: Financial statements of the last three financial years.
3. Customs Transaction Records: The firm should maintain a record of all its previous import/export transactions, including bills of lading, customs entry records, and proof of payment of duties/taxes.
4. Security Protocol Documents: These should mainly be documents detailing the internal security protocols that the firm has engaged in or is engaging in regarding cargo security, access control, and employee screening and risk assessment.
5. Detail Supply Chain: Provide details about the supply chain, the suppliers, freight forwarders, and logistics providers to the company in reasonable detail.
AEO Registration Benefit
- Fast-track through Customs: The AEO-accredited businesses move through customs with a priority, which reduces any congestion and accelerates the whole import/export cycle.
- Physical Inspections: The number of physical inspections that generally take place at the hands of customs authorities is cut down drastically to keep the wheel of trade running.
- Lesser Cash Flow Burdens: Because AEOs are entitled to reduced financial guarantees in paying customs duties, the burden of cash flow would be lesser.
- International Recognition: The status of AEO is internationally recognized and will thereby enable business houses to take the lead in receiving preferential treatment in countries where AEO mutual recognition agreements exist.
- Security Supply Chain: Through the AEO certification, companies introduce strict and complex security measures that improve supply chain security and integrity.
How YKG Global will assist you.
- Advising and assisting clients in the preparation of applications as per AEO rules
- Submitting of AEO application
- Guiding about physical inspection
- Continuous follow-ups with the department
- Obtaining an AEO certificate from the department
