Authorised Economic Operator (AEO) Programme to provide security and enhanced facilitation for trade partners in International Trade

By Vijay Kumar

RECENTLY, a seminar on the WCO proposed concept of Authorized Economic Operator (AEO) Programme was held in the Office of the Commissioner of Customs, Vizag. J.M.Kishore, Appraiser, in his welcome address, explained that in order to create the awareness about the AEO programme among the trade, the seminar is arranged and called for effective use of the same.

Dr. K. Venkat Ram Reddy, Additional Director from the Directorate of Inspection, Customs and Central Excise (DGICCE) explained various provisions relating to the AEO scheme. Several Customs related trade partners such as Importers, Exporters, Custodians, CHAs,warehouse operators, freight forwarders, carriers, liners, stevedores etc. along with the departmental officers attended the seminar.

Dr. Reddy being one of the officers involved in the pilot project implementation of AEO Scheme gave a detailed presentation on the scheme. An Authorized Economic Operator (AEO) status is granted by Customs to the trade partners associated with international cargo movement, compliant with the supply chain security standards and are given benefits, such as simplified Customs procedures and reduced Customs intervention. He also explained that at present, category wise facilities are proposed to be extended to the AEOs which included the benefits of reduced Bank Guarantees as well as enhanced facilitation levels while dealing with Customs operations.

Reddy, in his presentation explained that it was nearly 8 years back, on 23rd June 2005, safer world trade became a reality when The World Customs Organization with its 166 members adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade that included the concept of an Authorized Economic Operator (AEO).He informed that DGICCE is the nodal agency for the programme and those intending to apply for the status have to fulfil certain norms which are envisaged in the Board Circular 28/2012 Dt. 16.11.2012.

Trade partners using Visakhapatnam port may also find the details of the scheme and procedures in applying for the status as a separate Public Notice No.12/2013 Dated 23.07.2013 was issued.