AEO Registration Procedure in India – Complete Guide (2021)

The AEO (Authorized Economic Operator) concept was launched under the SAFE Framework of Standards for granting the status/certificate to the business entity which is involved in the international supply chain by fulfilling certain criteria under AEO Programme. Several businesses in India are opting for an AEO Registration/Certification Over the years, the AEO status has established itself as the benchmark for legitimacy in international trade. The AEO Certification has numerous tiers, viz. AEO T1, AEO T2, AEO T3, and AEO LO. Each of these confers benefits like:

• Faster trade facilitation.
• Shorter Cargo Release Time.
• Reduction in bank guarantee.
• The facility of 24/7 clearance at all seaports/airports on request.

How to apply for AEO Certification/AEO Registration in India?

There are the following two modes for AEO registration/certification in India –

Online Application - The applicant who wishes to apply for AEO T1 can apply https://aeoindia.gov.in/ and can attach all the required documents in the application form.

Manual Application - The applicant who wishes to apply for any of the remaining three AEO statuses should submit the manual application in the customs.

AEO T1 Certification

The Government of India has launched an online portal to apply for the AEO T1 where the applicants are only required to fill up two application forms - Annexure 1 & Annexure 2.  The process of the AEO T2, AEO T3, and AEO-LO registration is still offline.

Online application steps for getting an AEO T1 Certificate:

Type in www.aeoindia.gov.in in your browser and click on “Registration”.

AEO T1 Registration

• First, the applicant has to register themselves at the AEO website www.aeoindia.gov.in by providing all the information asked in the registration window to create a user ID and Password for logging into the portal for the application.
• The registration details are verified as per the online IEC (Import-Export Code) on the DGFT portal,
• Hence it is mandatory to do the registration on the AEO portal using the Mobile Number and Email id of the company which is already there in the IEC.

After filling out the above details you will receive a 4 digit OTP which you have to enter.

For the first-timer, you will have to create your username and password. Once it is created login with it.

After logging in you can see that on the left-hand side there are 4 sections (Profile, Application form, Application view, and Update verification). On selecting the profile you will see the previously filled up details like Company Name, IEC No, Mobile No, Zone, and email.

Online Filing of Annexure 1

Now proceed to the "Application form” section which is divided into Annexure–1 & Annexure -2. In Annexure -1 you will have to submit/upload the following documents:

• First Enter your Company's name.
• Rejection Letter (If the AEO application ever got rejected).

Select the relevant option for the question "Has your application ever been rejected?", if yes, fill in the relevant details and upload the rejection letter.  If no, skip to the next step.

Enter the IEC and GST certificate details

• IEC Certificate - Enter the IEC number and upload the certificate.
• GSTN Certificate - Enter the GSTN number and upload the certificate.

Enter the Registered Address/Branch Address

The next step consists of entering your address details in which you have to fill in the following details.

• Address type
• Address (number and street)
• State
• District/CIty
• Zip Code
• Upload Site plan

Now you have to enter details specifying the nature of your business i.e. Manufacturer, Trader, Importer, or Exporter? and the details of the contact person with whom the AEO Manager will contact.

• Contact Person's name, designation, contact number/alternative number, email id shall be filled in the fifth option.
• Now, proceed towards Sr. No. 6 of the Application form. Here, fill in your company registration number, PAN and upload the respective documents.
• Enter the PAN number of the company and upload the Pan Card copy.

Import Countries - You have to select from which countries you will be importing your items from along with the item's HSN Code.

Export Countries - Select the Export country where you will be exporting your product and then enter the name + HSN code of the items you will be exporting.

Import-Export Documents - Next, You need to fill No of documents (shipping bills + bills of entry of the previous FY),In simple words, it means that you should have handled more than 25 Import and Export shipments combined in the last FY to be eligible to obtain AEO Certification. This is a very basic and Important Eligibility Criteria.

Fill the Duration of business in Months (For obtaining an AEO Certificate you should have conducted the business for at least 36 months )

Process Map Details - Upload Import-Export process Map details.

Find below the image of one of the process maps that the Afleo consultant has used. Process map basically explains the process that any business undergoes to provide their services or manufacture their goods. To make a business map you can use different kinds of formats like a word document, PowerPoint file, etc.

Online Filing of Annexure 2

• Now in Annexure - 2 you will see this field wherein you will have to declare if there is any case of violation of customs & allied laws then you need to mention who is responsible for it.
• You need to mention if you’ve been issued any SCN (Show Cause Notice) by customs or GST authorities, if yes then you have to specify the reason behind it. Also, specify the brief of the breach including the provision in the SCN. Bring out the decision in the order if any and whether any prosecution has been launched.
• After that, you need to provide the break-up of Contingent liability in your Audit Report for the last 3 Financial years. After that you have to provide details like the procedure for administering the license, the procedure for administering the commercial records connected to exports/imports, and if you deal in goods subject to anti-dumping duties or safeguard duties.

• On this page upload details of goods and provide procedures for verifying the accuracy of customs declaration.
• Provide the procedure to ensure the protection of your computerized record system from unauthorized access.
• Provide the procedure for back-up and recovery of your business records (Please state for how long this data is archived).
• You need to provide the Net Worth of your company for the last 3 financial years. Uploading document for the same is optional.
• Provide Net Current Assets as per the Balance Sheet of the Audit Report for the Last Three Financial Year.
• Please provide details of any insolvency, bankruptcy, or liquidation proceedings taken against your company in the last 3 financial years.

After applying you can view your application in the “Application view” section.

After you have viewed and checked your Application form, you can go ahead and submit the same. In the “Update Verification” section you can check the verification process status of your AEO application.

After submission of your application, it will be processed by the AEO Authorities, and if the provided information/documents are found to be valid and considered to be eligible by the AEO Programme Manager, then the AEO T1 Certificate would be issued to the applicant within 30 days of the submission of the information and/or documents.

AEO T2 & AEO-LO Certification:

• The manual application is done for AEO T2 and AEO LO and the applicant will have to undergo onsite verification with documentary verification of all the business premises that have relevant customs-related activities.
• The duration of the visit/verification would vary depending on the business’s size, nature, number of premises, etc.
• The AEO Programme Team would provide an estimate of the time required to complete the verification, which may have to be modified once the verification has commenced.
• If several of the business premises of the applicant operate similarly through standard systems of record keeping and security, etc., it won’t be necessary for the AEO Programme Team to visit all of the premises. However, if different premises of the applicant run varying activities with dissimilar modes of operation, then it may be necessary for the team to make more visits.
• The AEO Programme Manager would inform the applicant about the AEO T2 or AEO LO certification status.
• If the application is not accepted, the applicant would be advised of the criteria that haven’t been fulfilled and provide him time to adopt procedures to rectify it.
• If the applicant is unable to make the necessary amendments within the allotted time period, the AEO Programme Manager would reject the application and enlist the reasons for doing so.

Note: - As per the latest update, the processing time period for AEO T1 has been reduced to 15 days from one month, and for AEO T2 it has been reduced to three months from six months for all the MSMEs as the Government has simplified the criteria and reduced the document requirement & processing time to support MSMEs against the challenges of the Covid- 19 Pandemic.

[Read the Simplified Criteria for the MSMEs to get AEO status - Eligibility Criteria for Authorized Economic Operator (AEO) Certification.]

AEO T3 Certification

There are the following criteria to get the AEO T3 Certification -

• The business entity must have continuously enjoyed the AEO T2 status for at least 2 years before the application to get the AEO T3.
• The entity must be an AEO-T2 certificate holder, and its other business partners must have AEO-T2 or AEO-LO certificate, the business partners include exporters/importers, logistics service providers, custodians/terminal operators, customs brokers, warehouse operators.
• If the applicant has continuously held an AEO T2 Status for two or more years, he will be issued an AEO T3 Certificate within 30 days of applying.

However, if there are any significant changes like operations of the business since the previous physical verification by an AEO Programme Team, the applicant might have to undergo physical verification if considered necessary by the AEO Programme Manager. If the applicant has not continuously held an AEO T2 Status for two or more years but satisfies the given eligibility criteria, a specific AEO Programme Team would conduct physical verification of the information and documents submitted in Annexure F only, within a period of 15 days. In case of any significant business changes since the last AEO Certification, physical verification of the information/documents would be conducted if deemed necessary by the AEO Programme Manager.

AEO Certification

After completing the AEO registration procedure, the AEO Programme Manager shall send the AEO Certificate to the applicant in hard copy along with an electronic copy. The certificate shall bear an ‘AEO logo’ that shall be representative of the status provided to the applicant. The applicant will have their AEO Status activated within a week from the date of issue. Upon activation, the applicant would be required to mention the given AEO Certification Number to signify their AEO Status.

How Much Time Would It Take To Obtain the AEO Certificate?

The time period denotes the time taken cumulatively for onsite verification, approval by the AEO Programme Manager, and the certification's delivery to the applicant.

Reasons That Prevents Further Processing Of The AEO Application

Due to the incompleteness of the application or certain other shortcomings of the business entity, the application would not be processed until these issues are corrected. Here are the cases wherein this could occur:

How Afleo can help you in AEO Registration Procedure?

Afleo Consultants is a leading Import-Export Consulting firm providing services related to DGFT and Customs. We were started our business with the mission of making the import-export process hassle-free for the Indian importers and exporters.

Here we follow a very unique methodology for obtaining the AEO certificate. We have helped hundreds of the company to get the AEO registration at an affordable cost and also assist them in maintaining the status as a complimentary service.

Our dedicated team of expert helps in simplifying the following AEO procedure -

• Documentation,
• Online/Manual application,
• Follow up with the Custom to get the certification.
• Assistance in Physical Verification
• Assist in maintaining the AEO status

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