Seamless Availability of Benefits to Authorized Operators (AEO) Certificate- holders - Customs - STANDING ORDER NO.05/2020 - CUSTOMS

OFFICE OF THE COMMISSIONER OF CUSTOMS, GST BHAVAN 41/A, SASSOON ROAD, PUNE-411001 F. No. VIII/Cus/Tech/48-48/Standing Instruction/2018-2019 Dated: 17.02.2020. STANDING ORDER NO.05/2020 - CUSTOMS Subject:- Seamless Availability of Benefits to Authorized Operators (AEO) Certificate- holders - regarding. Attention is invited to CBIC s Circular Nos.33/2016-Customs dated 22.07.2016, 03/2018- Customs dated 17.01.2018, 26/2018-Customs dated 10.08.2018 and 51/2018-Customs dated 07.12.2018 under which the CBIC has implemented the Authorized Economic Programme (AEO) and prescribed the and enumerated various benefits available to the AEO Certificate Holders. 2. It has come to the notice of the Board that the benefits enumerated under the aforementioned CBIC S are not been extended to the Authorized Economic Operator Certificate Holders. 3. In this regard, all the Assistant/Deputy Commissioners of Inland Container Deport/Container Freight Stations/Airport/All Sea Ports/Minor Ports Operating under Pune Customs are hereby directed that there should not be any difficulties/hindrances in providing the following Benefits to all Authorized Economic Operators, operating under the jurisdiction of Pune Customs Commissionerate. (A). NENEFITS TO BE EXENDED TO AEO-TI CERTIFICATE HOLDERS. i. They shall be accorded high level of facilitation in imports and export of their consignments, thereby ensuring shorter cargo release time. ii. Facility of Direct Port Delivery (DPD) of their import Containers and/ or Direct Port Entry (DPE) of their Export Containers would be available to them. However, this facility will be dependent on the volume of their Import/ Export trade in terms of number of containers. iii. ID cards to be granted to authorized personnel for hassle free entry to Custom Houses, CFSs and ICDs iv. Wherever feasible. they will get separate space earmarked in Custodian s premises. v. In case they are to furnish a Bank Guarantee, the quantum of the Bank Guarantee would be 50% Of that required to be furnished by an importer/ exporter who is not an AEO Certificate Holder. However, this exemption from Bank guarantee would not be applicable in cases where the Competent Authority orders furnishing of Bank Guarantee for provisional release of seized goods. vi. Investigations, if any, in respect of Customs, Central Excise and Service Tax cases would be completed, as far as possible, in six to nine months. vii. Dispute resolution at the level of Adjudicating Authorities in respect of Customs, Central Excise Service Tax cases would be done preferably and as far as possible within six months. viii, They will not be subjected to regular transactional PCA, instead of that onsite PCA will be conducted once in two years only. ix. They will get an e-mail regarding arrival/ departure of the vessel carrying their consignments. x. 24/7 clearances on request at ail sea ports and airports - No Merchant Overtime Fee (MOT) charges need to be paid. Further, certain benefits enumerated above does not fall under the purview of Pune Customs Commissionerat. In such cases, the AEO Status holders should be guided to approach the appropriate jurisdictional authorities. (B). BENEFITSTO BEEXTENDED TO AEO-n CERTIFICATE HOLDERS. The following benefits would be provided over and above the benefits offered in T1: i. They shall accorded higher level of facilitation (as compared to AEO-TI in imports and export officers consignments). ii. For Importers/Exporters not opting for DPDDPE, seal verification/scrutiny of documents by Custom officers would be waived. Consignments would be given out of charge or let export order, as the case may be, without any scrutiny by the officers. iii. The containers selected for scanning will be scanned on priority, by giving front line of treatment. iv. Facility payment of duty will be provided. v. Faster of drawback amount within 72 hours of EGM submission, from a date to be notified. vi. The BEs/SBs selected for Assessment and/or Examination will be processed on priority by the Customs officers. vii. Facility of self-sealing of export goods would be allowed without the requirement to seek case to case base permission from the authorities. viii. Faster completion of Special Valuation Branch ( SVB ) proceedings in case of related party imports and monitoring of such cases for time bound disposal in terms of new guidelines. ix. In case they are required to furnish a Bank Guarantee, the quantum of the Bank Guarantee would be 25% of that required to be furnished by an importer/ exporter who is not an AEO Certificate Holder. However, this exemption from Bank guarantee would not be applicable in cases where the Competent Authority orders furnishing of Bank Guarantee for provisional release of seized goods. x. They will be given facility to paste NR-P stickers in their premises. xi. They will not be subjected to regular transactional PCA instead of that onsite PCA will be conducted once in three years only. xii. They will be given access to their consolidated import/export data through ICEGATE from a date that would be communicated separately. xiii. They will be provided the facility of submitting paperless declarations with no supporting documents in physical form. xiv. All Custom Houses will appoint a Client Relationship at the level of Deputy / Assistant Commissioner as a single point of interaction with them. The CRM would act as voice of the AEO within Customs in relation to legitimate concerns and issues of AEO and would assist in getting procedural and operational issues resolved by coordinating with different sections within Customs as well as other stakeholders. In this regard the Dy. Commr/Asstt. Commrs. of the concerned ICD/Sea Port/Air Cargo etc. will function as the CRM for Importers/Exporters/Logistic Operators operating therein. xv. The refund/Rebate of Customs/Central Excise duty and Service Tax would be granted within 45 days of the submission of complete documents. xvi. They will get trade facilitation by a foreign Customs administration with whom India enters into a Mutual Recognition Agreement/Arrangement. Further, certain enumerated above does not fall under the purview of Pune Customs Commissionerate. In such cases, The AEO Status holders should be guided to approach the appropriate jurisdictional authorities. (C). BENEFITS TO BEEXTENDED TO AEO-T3 CERTIFICATE HOLDERS. The following benefits would be provided over and above the benefits offered in T2: i. They shall be accorded highest level of facilitation, as compared to AEO-T2, in imports and export of their consignments. ii. Their containers Will not be selected for scanning except on the basis of specific intelligence. Further when any container is selected for scanning, top most priority will be given for scanning. iii. The assessing/examining custom officer will rely on the self-certified copies of documents submitted by them without insisting upon original documents. iv. They would not be required to furnish any Bank Guarantee. However, this exemption from guarantee would not be applicable in cases where the Competent Authority orders furnishing of Bank Guarantee for provisional release of seized goods. v. An approach based on Risk based interventions, in case of requirements originating from the Acts administered by other Government Agencies/Departments, will be adopted for providing better facilitation in imports and export of their consignments. vi. On request, they will be provided on-site inspection examination. vii. The refund/Rebate of Customs/Central Excise duty and Service Tax would be granted within 30 days of the submission of complete documents. Further, certain benefits enumerated above does not fall under the purview of Pune Customs Commissionerate. In such cases, The AEO Status holders should be guided to approach the authorities. (D). Benefits to be extended for AEO-LO CERTIFICATE HOLDERS (Logistic Operators): SI. No. Entity Facilities to be provided 1 Logistic Service Providers (a) Waiver of bank Guarantee in case of trans-shipment of goods under Goods imported (Condition of Trans-shipment) Regulations, 1995. (b) Facility Of Execution of running bond. (c) Exemption from permission on case to case basis in case of transit of goods. In case of international transhipped cargo (Foreign to Foreign), for the pre-sorted containers wherein Cargo does not require segregation, ramp to ramp or tail to tail of cargo can be effected without Customs escorts. 2 Custodians or Terrninal Operators (a) Waiver of bank Guarantee under Handling of cargo in Customs Area Regulations 2009. (b)Extension of approval for custodians under regulation 10(2) of the Handling of cargo in Customs Area Regulation 2009 for period of 10 years. 3 Customs Brokers (a) Waiver of Bank Guarantee to be furnished under regulation 8 of the CBLR, 2013. b) Extended validity (till validity of AEO status) of licenses granted under regulation 9 of the CBLR 2013. System Manager to incorporate date of validity of AEO from time to time in the System Directory. (c) Waiver from fee for renewal of license under sub regulation (2) of regulation 11 ofCBLR,2013. 4 Warehouse Operators (a) Faster approval for new warehouses within 7 days of submission of complete documents. (b) Waiver of antecedent verification envisaged for grant of license for warehouse under circular 26/2016. (c) Waiver of solvency certificate requirement under circular 24/2016 (d) Waiver of security for obtaining extension in warehousing period under circular 21/2016. (e) Waiver of security required for warehousing of sensitive goods under circular 21/2016. 4. It is observed that out of the Top 100 Exporters only 33 Entities/Exporters are AEO Certificate Holders, and out of Top 100 Importers only 23 Entities/Exporters are AEO Certificate Holders under the jurisdiction of Pune Customs Commissionerate. 5. In this regard a fist of NON AEO TOP IMPORTERS and TOP EXPORTERS under the jurisdiction of Pune Customs Commissionerate, is appended to this Instruction at Annexure-I and Il respectively with the directions that all these Non-AEO Entities may be nudged and pursued to join the AEO Programme. Their contact details such as Name, Mobile Nos and Land Line Nos., of the authorized Signatories viz, CFO, EXIB I Head etc who have been contacted by the respective In- charge of ICD s/CFS/Ports/Airports, may be communicated to the Programme Manager (AEO), Commissioner of Pune Customs, Pune Zone, within one week positively. 6. All the Officers of Pune Customs Commissionerate, are hereby advised to note the directions enumerated above for compliance. Difficulties, if any, faced in implementing the above directions should be brought to the notice. (P.K. BEHERA ) COMMISSIONER CUSTOMS, PUNE.