What is an AEO Certificate and How to Apply?

If your business is related to supplying or your business is related to importing, or exporting. Then AEO certification becomes a compulsory thing for you. What is an AEO certificate? The Authorised Economic Operator certificate is a type of status provided by customs authorities to businesses that are involved in secure and compliant supply chain procedures. The main work of this certification is to ensure that the supply chain is working properly without any issues. In terms of ensuring a secure and fully compliant supply of products, the government issues this certification.

The AEO certification is provided by the World Customs Organisation (WCO) to improve international supply chain security and facilitate legitimate trade. Also, when any business gets its AEO certification, it also gets many benefits regarding its supply or importing, such as faster customs clearance, reduced inspections, and priority processing.  Mainly, this certification is different because it can only be used for ensuring that any business or manufacturer is adhering to global guidelines of supply chain or importing nd its supply chain is secure and reliable.

So, in this blog, you will learn about the Authorised Economic Operator registration, its benefits, and its uses for many manufacturers and businessmen.

1. AEO Certification: Its Uses and Benefits

When the terms arrive, safety, for which many authorities provide many types of certification and registrations. And the AEO certification is one of them, which ensures safety and security in the supply chain, or we can say in the importing or exporting of products. Basically, the government issues this certification to help manufacturer by speeding up their customs clearance, reducing inspections, and deferring duty payments.

This certification is also mainly used for securing the supply chain, so that there is no issue or non-compliance happening during the supply or importing of products. Enhances supply chain security, builds a trusted market reputation, and provides cost savings through more efficient logistics. So, we can say that this AEO certification helps businesses in improving their import-export to the different markets and countries.

Now, take a look at some more uses and AEO benefits for exporters of this certification:

• Rapid custom processing – The AEO certification helps many manufacturers by reducing their cargo release times and streamlining customs procedures for their shipments, due in which them to achieve faster processing.
• Remove inspection – Due to having this certification, many operators face fewer inspections, saving time and resources in terms of securing the supply chain.
• Reduce duty payments – Those certificate holders with higher tiers can also reduce their duty payments by de-linking duty payment from customs clearance.
• Delivery into direct port – The AEO eligibility criteria certification also provides manufacturers the ability to determine which containers are delivered directly to the premises, and sometimes the containers are directly exported to which reduces logistics time and costs.
• Reduces bank guarantee requirements – The certification of AEO can also require the reduction of refunds and faster resolution of customs-related issues.
• Mutual Recognition Agreements (MRAs) – AEOs provided by MRAs, which are agreements with other countries that recognise the AEO status, providing reciprocal benefits and speeding international trade.
• Saves operational costs – This certification also provides more benefits, like Reduced delays, simplified documentation, and fewer merchant payments, which lead to lower operational costs.
• Improves reputation and security – Obtaining AEO certification shows that your business is secure and perfect for the global supply chain, which directly boosts its reputation among its partners and consumers.
• Faster refunds and disputes – The AEO application process in India also provides access to expedited processing for refunds and quicker resolution of customs-related disputes.
• Smoother compliance – This certification also provides a manufacturer framework by which businesses can easily maintain a satisfactory record of compliance with customs compliance certification.

2. The Process of Getting This AEO Certification

Now, after reading all the benefits and uses of this certification, if you also want your certification. Then, follow some easy steps in terms of getting your AEO certificate. Firstly, you need to register on the portal of AEO, then apply by providing the information of your company and procedures, and then complete a self-assessment questionnaire. After which, provide the required documents like financial records and security procedures.

After this, all processes you provided the application undergoes different verification, which may also include a physical audit, depending on your certification requirements. Which approves you for all tiers of criteria. Take a look at the step-by-step, detailed process on how to apply for AEO certification:

1. In the first step, create an account on the portal of AEO portal by using your company’s mobile number and email address as listed on the DGFT portal.
2. Then, after logging in to that portal, select your appropriate AEO certification, which perfectly suits your business and supply chain.
3. Then, after it provides the detailed information about your company in which also includes your operations, security measures, and compliance record.
4. Then give them the required documents, in which you have to include proof of financial stability, records of tax and customs compliance, process maps, and site plans.
5. Self-Assessment Questionnaire, then go with the self-assessment form in terms of evaluate your business’s adherence to the AEO program’s security and compliance standards.
6. Audit and verification, then, after these previous steps, the AEO program team will review your application for T1, which is generally based on documents. And for higher tiers like T2 and AEO-LO, there is an on-site inspection, which is required as part of the verification process.
7. Fix defects, after the inspection and audits, if the customs duty finds any defect, you will need to provide the requested additional documents or information to proceed.
8. Approval, once all your steps and audits are completed, the AEO certification will be issued for your company. Also, you don’t need any self-declaration to maintain your AEO certificate.

3. Which Business Requires an AEO Certification?

Mainly, those businesses that are involved in the global supply chain, such as importers, exporters, logistics providers, and customs brokers. For all these, the AEO certification is important. Other eligible business that can also gets their AEO certification include terminal operators, port operators, warehouse owners, carriers, and authorised couriers.

So, mainly we can say that those businesses that are directly involved in exporting and importing, for them, this certification becomes a great choice for their smooth business. Some more details on the businesses that are eligible for this certification are mentioned below:

• Importers and exporters – Companies that are involved in importing and exporting their goods to different markets and countries may require this certification.
• Logistic providers – Those businesses that are involved in moving goods from one place to another. Such as freight forwarders, shipping lines, airlines, and carriers can also apply for AEO certification.
• Custodians and Terminal Operators – Firms that handle imported/export goods at ports, airports, and inland container depots can get AEO.
• Customs House Agents – Licensed customs brokers who facilitate customs clearance on behalf of clients can apply for AEO certification.
• Warehouse Operators – Companies operating customs bonded warehouses for storage can also go for AEO certification.
• Other supply chain businesses – Those businesses that are involved in other activities, like Port operators, authorised couriers, and stevedores, can also apply for AEO certification. 

4. Through LegalRaasta, Get Your AEO Certificate!

We are a certified company offering a variety of services tailored for business founders and manufacturers. We offer the AEO certificate. With us, you can gain access to it without hassles. LegalRaasta makes available the AEO certificate for startups and growing companies that need it, both for owners and sellers of businesses. Count on us as your pathfinder to growth and success because we shall make sure we deliver our legal services impeccably.

A few providers are offering their AEO services in this market space, though we happen to be one of them, making it easy for you to get this service. We also deal in many more services like GMP certification, company registration, LLP registration, NBFC registration, among others. 

5. Frequently Asked Questions

For what purposes is this AEO certificate used?

Ans. The AEO certification is mainly used for ensuring safety and security among supply chains, importing and exporting, in terms of the fast supply of products.

What is the full form of AEO certification?

Ans. The full form for AEO is Authorised Economic Operator certification, used for importers and exporters.

Who issues this AEO certification?

Ans. This certification is mainly issued by customs authorities to companies, and also by the independent, third-party Certification Bodies (CBs), also called registrars.

Why the AEO certification is important for supply chains?

Ans. The AEO certification is important for the supply chain because it ensures security between supply chains. and also ensures smooth importing and exporting among them.

How do I apply for AEO certification?

Ans. You can easily apply for your AEO certificate through the online portal of AEO, submit your documents and information of the company to get your certification.