The AEO Programme seeks to secure the global supply chain in partnership with business entities that are fully legally compliant and provide with the Customs the confidence to validate their security features.
We provide Consultancy services for accreditation of AEO - T1, T2, T3 (Authorized Economic Operators) certificate issued by Indian Customs to the industry involved the international supply chain that undertakes Customs related activity e.g. Exporters, Importers, Customs House Agents, Custodians or Terminal Operators, Logistics Service Providers (Carriers / Forwarders) & Warehouse Operators related activities.
AEO Registration
AEO Scheme, adopted by several countries across the globe, is a World Customs Organization initiative towards Standards to Secure and Facilitate Global Trade or SAFE Framework under the scheme, stakeholders approved by Customs as compliant with the supply chain security standards are given benefits such as simplified Customs procedures and reduced Customs intervention. AEO scheme has been implemented by the Directorate General of Inspection Customs & Central Excise (DGICCE), New Delhi with Additional Director General as the AEO Scheme manager and implementation of pilot proposals has commence from 15 September 2011.An Authorized Economic Operator (AEO) program has been developed to enable businesses involved in the international trade.
AEO audit team will examine applicant’s record of compliance over past three years from Customs, Excise and Service tax law perspective as well as allied laws administered by the Department. Major violations in any other fiscal laws e.g. Corporate Tax will also be taken into consideration. However, technical or procedural errors with insignificant impact on revenue will not be the basis for disqualification of the application. Any economic operator such as importer, exporter, logistics provider and CHA can apply for authorization, if he is able to establish record of compliance in respect of customs and other legal provisions, is financially solvent and able to demonstrate satisfactory systems of managing commercial and transport records. Our comprehensive package of consultancy includes establishment of security management system, implementation & relevant trainings.
Reduced time and reduced cost is another benefit expected by Indian AEO programme. There will be increased safety & security standards which will benefit the industry. AEOs will be recognized as safe, secure and compliant business partners internationally.
AEO Certification will contribute to speedy movement and enhance our business. With this additional recognition we expect to increased volume of business as customer confidence in us is expected to increase.
- In respect of AEO, Lisam Consultancy Services can help:
- Assist your business in preparing for AEO status;
- Assist you with undertaking the necessary reviews to identify how ready you are for AEO;
- Assist you in closing any identified gaps in your systems to ensure AEO criteria can be met;
- Assist you in preparing the necessary documentation to meet AEO standards;
- Assist with developing post implementation audit programmes to ensure that AEO is reviewed (it is akin to an ISO);
- Undertake post audit reviews on case basis.
The Customs People has the experience and expertise required to help your business prepare for Authorized Economic Operator (AEO) status, including the knowhow required to guide you through the entire process.
As experts in the field, we can ensure your business approaches the process of obtaining AEO accreditation in the most favourable and efficient manner. We understand how this often complicated process should be tackled so it does not become an unnecessary burden.
We offer much more than simply helping you to apply for AEO status, by conducting a thorough investigation to ensure your business is ready, and providing expert recommendations to ensure you are likely to be granted accreditation. This is especially vital as you have to wait three years before you are able to reapply if your application is rejected.
In-house training
We can provide in-house training to support your company to complete a AEO application. Usually this consists of a one-day consultancy package where we advise on what needs to be done to obtain AEO authorization. Further to the initial consultancy we can continue to provide additional support if and when required to ensure the recommendations are being implemented in line with your company goals.
Providing assistance with certain aspects of the process
By undertaking the assessment reviews on an independent basis, we can identify other areas to maximize revenue. This assessment is a large part of the AEO application, and aside from applying for AEO status, we will also address areas of potential savings within your business. But, as independent consultants, the \\\'self-assessment\\\' criteria will be more credibly met with the help of our team.
Assisting with the whole AEO application
The Customs People will utilize our vast knowledge and expertise to complete a full service throughout the process. Aside from gaining AEO status with minimal disruption to your day-to-day schedule, we can also highlight any savings or profits that can be made in your current Duty and VAT structure. We will also deal with the HMRC, leaving you to concentrate on your company and the benefits AEO status will bring status which has been outlined below:
Customs-related advantages
One major change within the UCC is that any businesses operating a ‘Special Procedure’ will be required to lodge a guarantee that is equivalent to one month’s potential duty and import VAT unless at the point that either their authorization expires, or, in the case of open-ended authorizations like customs warehousing, HMRC reassess their ongoing authorization with the following:
The business has AEO accreditation, or
The business can demonstrate that they meet the AEO criteria
On a practical level, AEO status means that items pass through customs as quickly as possible. It also means:
It will be quicker and easier to obtain customs simplifications;
You will be subjected to fewer physical and document checks at borders;
If you are selected at controls, you will be given priority as an AEO consignment;
You can request that a control is held at a different place.;
Business advantages
AEO status is internationally recognized, which means you will be acknowledged as a “preferred supplier”. As a result, business opportunities are likely to rise, giving you the chance to expand within a network of accredited, vetted suppliers and transporters.
Other advantages for businesses include:
More efficient transporting through borders;
Less risk and more effective checks on the reliability of third parties;;;
Potentially lower insurance premiums in the future;
More efficient import/export systems for those involved.
Global advantages
AEO standards are not restricted to the EU, and this status will ensure your business enjoys the associated benefits in a number of international markets.
More than 70 countries are included in the AEO, or a similar initiative;
There are opportunities for your business to expand into new territories with the benefit of a mutual “approved supplier” framework;
A more efficient approach to international customs.
Financial advantages
The advantages brought about by AEO have efficiency, productivity and profits at their core. Faster customs checks, a global network of improved suppliers and a certificate of reliability and safety will have considerable benefits for any business.
Financial advantages include:
More efficient logistics, increasing profit;
Less risk when working with third parties;
A quicker, more efficient approach to customs reliefs and applications;
Preferential treatment from other businesses and customs itself.
AEO Application
We can provide you with support in the AEO (Authorized Economic Operator) application process.
Our consultants can perform a quick-scan and take a detailed look into your logistics processes. Based on the outcome, we can determine which AEO certificate would be the best fit for you: AEO Customs, AEO Security or AEO Full (Customs and Security) and support you in the complete application process.
Customer Benefits
- Guidance through the full application process including customs audit;
- Set up of reliable and compliant processes including documentation;
- Risk reduction and transparency;
- Fast and smooth customs clearance in the future through a successful application process;
- Decreased costs;
- Decreased complexity;
- Benefit from having up-to-date customs expertise available in all countries.
Procedure to Apply for AEO status
An applicant for grant of AEO status is required to submit the following documents:
- Application for Authorized Economic Operator (AEO) Status (Annex – A);
- Security plan (Annex – B);
- Process map (Annex – C);
- Site plan (Annex – D);
- Self-Assessment Form (Annex – E).
Note: Under this programme, an entity engaged in international trade is approved by national Custom authorities as being compliant with supply chain security standards and granted AEO status and certain procedural benefits resulting in preferential treatment in clearance of import/export cargo. Once certified to be AEO, the business entity is treated as reliable and secure trade partner in the global supply chain.
