Eligibility and Procedure of AEO Certification

The World Customs Organization’s (WCO) SAFe Framework of Standards launched the Authorized Economic Operator (AEO) programme. It was created to protect and facilitate international trade. The program aims to improve international supply chain security and make it easier for genuine commodities to flow.

An entity engaging in international trade must be approved as complying with supply chain security criteria and granted AEO accreditation and certain benefits under the AEO programme.

Criteria for an entity’s AEO-Eligibility

• The company must have handled a minimum of 25 papers (Shipping Bills or Bills of Entry) in the previous Financial Year,
• The firm should have prior experience working with Customs.
• The firm must be a part of the global supply chain and have led business in the previous three fiscal years.

What are the procedure to apply for AEO certification?

It’s important to remember that AEO Registration can only be given to the legal business, not its subsidiaries. There is certain mandatory documents and compliance which need to comply under the AEO registration process.

An entity can apply for AEO License using the below procedure:

Application Form.

1. The applicant must include ME/SB fields from the previous financial year with a copy of the Board Resolution and any MSME Certificates.
2. Security Plan, Site Map, and Process Map.
3. Documents associated to compliance procedures like a copy of any show-cause notices issued under the Customs Act, internal control review, and proper details on any customs law violations.
4. Documents about the management of transportation and commercial records.
5. Documents verifying the company’s financial solvency which includes financial statements from the last three previous years, a certicate of statutory auditor’s solvency, etc.
6. Documents verifying the cargo’s safety & security, such as a procedure manual to ensure cargo integrity & security and also the premises security.

Conclusion:

Qualified CA professionals at ASC assists in end-t-end consultancy to obtain AEO Status throughout the process such as documentation, application, certification, etc. Physical Verification Assistance in the maintenance of AEO status.