An AEO Certification is essential for any organization involved in international trade. The AEO helps streamline cargo security through close cooperation with all stakeholders in the international supply chain. The Customs department has further liberalized, simplified, and rationalized the AEO accreditation process to promote ease of doing business.
In this article, we explain the necessary steps and compliances that need to be maintained once you have received AEO Status. AEO maintenance is essential for organizations to maximize the benefits of the AEO scheme.
Maintenance of AEO Status
After receiving AEO certification, the respective company must adhere to the standards set for them, as the AEO certificate assures that the company maintains a trusted and compliant supply chain. Any changes that take place in the company must be notified to the Authorized Economic Operator Programme Team within 14 days. Such changes include:
1) Changes in the legal entity.
2) Changes in the business name or address.
3) Changes in the nature of business.
4) Changes in the accounting and computing system.
5) Changes in the person responsible for customs compliance.
6) Changes in the location within the international supply chain.
Note: Failure to notify these changes may result in temporary suspension or revocation of AEO status.
Errors detected in internal systems (CRM or others) must be corrected immediately and reported to the AEO Programme Team. The AEO status will remain unaffected if the AEO team has:
1) Examined the reason for errors.
2) Taken appropriate remedial action to prevent a recurrence.
Validity of AEO Certification
The validity of the AEO certificate is as follows:
- AEO-T1 & T2: 3 years
- AEO-T3 & AEO-LO: 5 years
Important Update for 2025:
- AEO-T1 entities certified on or after 01.04.2019 are eligible for auto-renewal via annual self-declaration submitted between October 1 and December 31. This eliminates the need for full renewal application, provided no compliance issues are detected.
Renewal of AEO Certificates
To continue enjoying AEO benefits, applications must be submitted before expiry:
- AEO-T1 (pre-April 2019 certificates): 30 days prior
- AEO-T2: 60 days prior
- AEO-T3 / AEO-LO: 90 days prior
Upgrades:
Existing organizations can upgrade from AEO-T1 to T2, depending on eligibility. Those eligible for T3 may also apply. The AEO Programme Manager typically processes these within 15 days.
Applicants must highlight any changes compared to the last application when submitting renewal requests.
MSME Relaxations:
- MSMEs benefit from reduced documentation requirements and simplified procedures for renewal or upgrade, particularly if submitting ≥10 Bills of Entry or Shipping Bills in the previous financial year.
CCSP Alignment:
- Effective Nov 2024, CCSP license validity is aligned with AEO status. Maintaining an active AEO certificate is mandatory for CCSP operations.
Review of the AEO Status by the AEO Programme Team
The AEO team periodically reviews each organization to ensure continued compliance with AEO standards. Organizations are advised to reassess their AEO compliance annually.
Review Frequency:
- AEO-T1: Every 2 years
- AEO-T2: Every 3 years
- AEO-T3 & AEO-LO: Every 5 years
Comprehensive Compliance Review (CCR):
- For T1 entities under auto-renewal, Customs may conduct a CCR over multiple years of self-declarations. Any issues detected may lead to manual review, suspension, or downgrade of status.
Misuse of Benefits:
- AEO benefits can be suspended if Customs authorities find misuse. The AEO Program Manager will then take appropriate action.
Benefits of Maintaining AEO Status
Maintaining AEO status ensures:
- Priority clearances and reduced inspections
- Deferred payment of duties
- International recognition via Mutual Recognition Agreements (MRAs)
- Continued eligibility for CCSP licenses
Pro Tip: Start internal audits at least three months before certificate expiry, maintain accurate documentation, and submit annual self-declarations on time to avoid lapses.
About Afleo
Whether you are a manufacturer aiming to expand globally or a logistics provider seeking trade facilitation benefits, Afleo.com can help you obtain and maintain your AEO certification in India quickly and hassle-free.
Our experts assist in:
- Internal audits and SAF preparation
- Responding to Customs queries
- Training personnel on AEO compliance
With Afleo, you can ensure seamless AEO maintenance and keep your supply chain fully compliant.
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