India: The Power of Authorised Economic Operator (AEO) Status – Are you missing on it?

published on 24 April 2025 | reading time approx. 3 minutes

An AEO is like a "trusted trader" badge which is granted to businesses when they demonstrate that they adhere to the guidelines for secure and reliable international trading. For instance, imagine that you're traveling internationally and you have a trusted traveler pass (like Global Entry), you get to skip long lines at customs, right? Well, AEO is the same idea, but for businesses. Companies with AEO badge get faster customs clearance, fewer checks, and less paperwork when moving goods across borders. It's like having VIP access for your shipments!

What is the AEO Scheme?

The AEO is the voluntary programme under the SAFE Framework of Standards adopted by World Customs Organisation members, to secure and facilitate international trade. The facilitation measures implemented through the Indian AEO Programme has ensured a significantly faster movement of goods at Indian ports, which in turn has translated in substantial savings in time and cost for the Indian Trade.

An AEO is a business that has been recognized by customs authorities as a trustworthy partner in international trade. This status is granted to companies that meet standards for customs compliance, security, and risk management. AEO certification is part of an international program aimed at enhancing the security of the global supply chain while facilitating smoother and faster trade. AEO is a three-tier programme for importer and exporter i.e. AEO-T1, AEO-T2 and AEO-T3 in the increasing degree of benefits accorded and compliance requirements.

Why AEO Scheme?

Who can apply for AEO status?

Any business entity that is involved in the international supply chain and which fulfils obligations under the Customs law in India, can apply for AEO status. These may include exporters, importers, logistic providers, Customs House Agents, Warehouse Owners, authorized couriers, etc. An entity should meet the following criteria to apply for AEO status.

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What are the benefits?

Benefits	AEO-T1	AEO-T2	AEO-T3
Shorter cargo release time/Direct Port Delivery (DPD)/or Direct Port Entry (DPE/ID to authorized personnel	Yes	Yes	Yes
Faster completion of Investigations/ Dispute Resolutions	Yes	Yes	Yes
E-mail regarding arrival and departure of the vessel 24/7 clearances on request at all sea ports and airports/Merchant Overtime Fee (MOT) charges waiver	Yes	Yes	Yes
Waiver of seal verification/scrutiny of documents/ out of charge/ let export order without any scrutiny by the officers	No	Yes	Yes
Facility of deferred payment of duty ('Clear first-Pay later')/Faster Drawback disbursal	No	Yes	Yes
Facility to paste MRP stickers in their premises	No	Yes	Yes
Access to their consolidated import/export data through ICEGATE	No	Yes	Yes
Client Relationship Manager (CRM) at AC/DC level at all port	No	Yes	Yes
Benefits of Mutual Recognition Agreements with other Customs Administrations	No	Yes	Yes
Waiver of Bank Guarantee	50%	75%	100%
Front line treatment for container scanning	No	Yes	No Scanning
Post Clearance Audit	Yes	Once in 3 Years	On intellegence inputs only

What is the validity period of AEO Status?

The validity of AEO certificate is three years for AEO-T1 and AEO-T2, and five years for AEO-T3 and AEOLO. The AEO status is renewed against application for the same made before lapse of their validity as prescribed. The AEO status holder must notify the changes as soon as it is known or at least within fourteen days of the change taking place.

Whether AEO certificate is valid at all Customs stations across India?

Yes, it is valid at all Customs stations in India. Are you involved in international trade but are missing out of these benefits? Have you evaluated how you make yourself more compliant with customs regulations and benefit from the AEO scheme?