If you want to experience faster and hassle-free international trade, getting an AEO Certification i.e (Authorized Economic Operator Certification) can be of immense help to you. AEO benefits include several import/export privileges and it can also help your business to gain a reputable position in its niche.
A growing number of businesses in India are seeking to get their business AEO-Certified as it is being seen as the international standard for doing legitimate trade.
What Exactly Is An AEO Certification?
To maintain legitimacy and transparency in international trade, the World Customs Organization introduced the Authorized Economic Operator (AEO) Certification that is in alignment with its SAFE Framework of Standards.
In India, AEO Certification was implemented in 2011. There are three tiers of AEO Certification in India: AEO T1, AEO T2, and AEO T3. Along with this, there’s also an AEO LO Certification that is given to logistics providers, warehouse operators, etc.
What Are The Benefits Of AEO Certification in India?
Getting your business AEO Certified can help you experience an unprecedented level of trade freedom. It grants you several import/export benefits; the benefits get greater as you go up the certification tiers.
Here is a tabular representation of the various trade benefits that are available with each tier:
Note: Another Important benefit for AEO status Holders is the Self-Ratification Advance Authorisation Scheme. This Scheme is only available to AEO Status Holders. Under this Scheme, Exporters who are availing benefits of Advance Authorisation can get Advance License on Self Declaration and Self Ratification basis.
Therefore in cases where SION (Standard Input Output Norms) / Valid ad-hoc Norms for an Export Product are not fixed or where SION has been notified but exporter intends to use additional inputs in the Manufacturing process, there is no need to approach Norms Committee for Fixation of Norms. Exporters can Redeem the Advance License on Self Ratification basis. Above Scheme is as per para 4.07 A of FTP 2015-20
Benefits of an AEO LO Certification
Why Get Your Business AEO-Certified?
Acquiring an AEO Certification can allow you to perform trade without many restrictions or hindrances. Apart from these trade benefits, there are also other practical reasons why you should consider getting your business AEO-Certified.
- Getting an AEO Certification is relatively simple. You can get your business AEO T1 Certified just through the submission of some documents; no on-site verification is required for this basic AEO Certification.
- The restriction-free trade made possible by an AEO certification can help your business boom; lesser restrictions equal faster trade, which can translate into accelerated business growth.
- Regardless of the size of your business, you can get your business AEO Certified. You just need to be involved in Customs Related Activity in India and fulfill some other basic criteria to be eligible.
- Getting an AEO status can help you build better relations with the international businesses, mostly because there’s a sense of legitimacy & authenticity linked to trading with organizations that bear this certification.
We Help You Get Your Business AEO Certified!
AFLEO Consultants is a tech-empowered legal service provider that aims to helps you to provide quality legal support at an affordable cost.
We also offer AEO Certification services, wherein our dedicated team of experts helps in simplifying the process for you and provides you with the maximum AEO benefits for exporters. You’re provided with step-by-step assistance in getting your business AEO-Certified, leaving no room for any hassle or complications!
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