Tax Management India. Com
                        Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Articles News
Highlights
D. Forum
What's New
Sub-Menu

Share:      

        Home        
 
Home List Manuals Customs CBEC's Customs Manual 2015 This
← Previous
  • Login

 

User Login
Username  
Password  
Stay sign in     

Forget password       New User/ Regiser


Register for Demo / Trial


Annual Subscription Offer

With popular demand, we introduce:-
Special offer on GST Package for Professionals
i.e. CA/CWA/CS/Advocate/Others @ 2500/- +GST



 

Authorized Economic Operator (AEO) Programme - CBEC's Customs Manual 2015 - Customs

Extract

..... house owners, Custom House Agents, cargo forwarders and carriers. The objective of the AEO Programme is to provide businesses with an internationally recognized quality mark which will indicate their secure role in the international supply chain and that their Customs procedures are efficient and compliant. An entity with an AEO status can, therefore, be considered a 'secure' trader and a reliable trading partner. 1.3 As aforestated, the AEO Programme seeks to secure the global supply chain in partnership with business entities that are fully legally compliant and provide with the Customs the confidence to validate their security features. Therefore, it is imperative that participating entities ensure they fulfill this fundamental requirement. 2. Benefits of an AEO Programme: 2.1 A business authorized by the Customs as an AEO can enjoy benefits flowing from being a more compliant and secure company as well as favourable consideration in any Customs proceedings coupled with better relations with Customs. AEO status will also ensure a low risk score is incorporated into Customs 'Risk Management System' (RMS) and used to determine the frequency of Customs physical and .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Authorized Economic Operator (AEO) Programme - CBEC s Customs Manual 2015 - Customs

X X   X X   Extracts   X X   X X

..... iod of Customs Broker licenses. The Licence shall be valid till validity of their AEO authorization. Further, the fee for renewal of a licence shall be exempt. F. Warehouse Operators: (a) AEO warehouse operators shall be accorded faster approval for new warehouses. (b) AEO warehouse operator shall be given benefits of reduced bank guarantee to the extent of 5% of the duty liability in respect of individual consignments of sensitive goods to be warehoused. (c) In case of goods not likely to deteriorate, the Chief Commissioner of Customs may grant extension upto a period of six months at a time in deserving cases. 3. Criteria for considering application for grant of AEO status: 3.1 The following criteria is relevant for the grant of AEO status: (i) Appropriate record of compliance of Customs and other relevant laws; (ii) Satisfactory system of managing commercial and, where appropriate, transport records; (iii) Proven financial solvency; and (iv) Maintenance of approved security and safety standards. 3.2 Anyone involved in the international supply chain that undertakes Customs related activity in India can apply for AEO status irrespective of size of the business. These include manuf .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Authorized Economic Operator (AEO) Programme - CBEC s Customs Manual 2015 - Customs

X X   X X   Extracts   X X   X X

..... cers from the Directorate General of Inspection and its regional offices. 4.3 Each application will be acknowledged and recorded in an AEO Programme database. 5. Return of application: 5.1 If application is incomplete or deficient, the applicant will be suitably informed within 30 days of the receipt. 5.2 AEO Programme Manager will not process the following applications until these are rectified, as indicated: (a) Which is incomplete - This may be resubmitted with the complete information. (b) Where the application has not been made by a legal person - This can only be resubmitted by the concerned legal entity. (c) Where no responsible person is nominated - This can only be resubmitted when the applicant nominates a responsible person who will be the point of contact for the AEO Programme. (d) Where the applicant is subject to bankruptcy proceedings at the time the application is made: This may be resubmitted when the applicant becomes solvent. (e) Where a previously granted AEO status has been revoked-This may not be resubmitted until three years after the date of revocation. 6. Processing of application: 6.1 On receipt of the complete application and after ensuring the applicant .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Authorized Economic Operator (AEO) Programme - CBEC s Customs Manual 2015 - Customs

X X   X X   Extracts   X X   X X

..... ualification for grant of AEO status. This approach would extend to the various allied laws that are administered by the Department. These 'technical' or procedural errors may include the following: (i) Any errors that have been voluntarily disclosed; (ii) Any decisions which have been overturned by Courts/Tribunal or departmental review; (iii) Any decisions currently under review; and (iv) Where a penalty is imposed for a minor irregularity. 9.3 The company should have business activities for at least 3 years. 9.4 AEO Programme Manager will assess whether a serious infringement or repeat infringements of Customs, Central Excise and Service Tax laws has been committed by (a) the applicant, and (b) any other responsible person involved in the running of the business. 9.5 An applicant will also need to demonstrate that he has: (i) procedures in place to identify and disclose any irregularities or errors to the Customs authorities or, where appropriate, other regulatory bodies. (ii) taken appropriate remedial action when irregularities or errors are identified. 9.6 Once an error has been identified, the applicant is expected to take steps to ensure that they do not happen agai .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Authorized Economic Operator (AEO) Programme - CBEC s Customs Manual 2015 - Customs

X X   X X   Extracts   X X   X X

..... utstanding claim against any guarantee in the last three years. Further, the applicant should not have delayed in payment of due taxes. Only uncontested and undisputed claims will be treated as outstanding claims for the purpose of this Para. 11.2 AEO Programme Team will rely on the applicants annual accounts due in the last three years to establish solvency. In particular, the following will be taken into account: (i) Where required, the accounts have been filed with Registrar of Companies within the time limits laid down by law. (ii) Where applicable, audit qualifications or comments in the annual accounts about the continuation of the business as a going concern. (iii) Any contingent liabilities or provisions. (iv) Net current assets are positive. (v) Net assets position and the extent of intangible assets. 11.3 It is recognized that in some circumstances a company may have negative net assets. For example, a company may be set up by a parent company for research and development purposes when the liabilities are funded by a loan from the parent or from a financial institution. In these circumstances, negative net assets will not necessarily be seen as an indicator of insolvency .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Authorized Economic Operator (AEO) Programme - CBEC s Customs Manual 2015 - Customs

X X   X X   Extracts   X X   X X

..... and/or irregularities are discovered. 12.4 Procedural Security:- In order to ensure procedural security following measures / steps should be taken. (i) Security measures should be in place to ensure the integrity and security of processes relevant to the transportation, handling, and storage of cargo in the supply chain. (ii) Proper documentation management procedure should be in place to ensure that all documentation used in the clearing of cargo is legible, complete, accurate and protected against the exchange, loss of introduction of erroneous information. (iii) Procedure should be in place to ensure that information received from business partners is reported accurately and timely as well as declared in the time limit regulated by Customs. (iv) Procedure should be in place to ensure that: (a) Import / Export cargo are reconciled against the information on the bill of lading. (b) The weights, labels, marks and piece count of the import/export cargo are accurately indicated. (c) Import/export cargo are verified against purchase/delivery orders. (d) Drivers delivering or receiving cargo are positively identified before cargo is received or released. (e) All shortages, overages, a .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Authorized Economic Operator (AEO) Programme - CBEC s Customs Manual 2015 - Customs

X X   X X   Extracts   X X   X X

..... rwise controlled. Vehicles accessing restricted areas must be parked in approved area and their license plate numbers furnished to Customs upon request. (f) Only properly identified and authorized persons, vehicles and goods may be permitted access. (g) Access to document or cargo storage areas may be restricted. (h) There should be appropriate security systems for theft and/or access control. (i) Restricted areas should be clearly identified. (j) integrity of structures and systems must be periodically inspected. (k) Perimeter fencing should enclose the areas around cargo handling and storage facilities. (l) Interior fencing within a cargo handling structure should be used to segregate domestic, international, high value and hazardous cargo. (m) All fencing must be regularly inspected for integrity and damage. (n) The number of gates should be kept to the minimum necessary for proper access and safety. (o) Private passenger vehicles should be prohibited from parking in or adjacent to cargo handling and storage areas. 12.7 Personnel Security: In order to ensure personnel security following measures are required. (a) All reasonable precautions must be taken when recruiting new staff .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Authorized Economic Operator (AEO) Programme - CBEC s Customs Manual 2015 - Customs

X X   X X   Extracts   X X   X X

..... chain. (b) Employees are aware of the procedures the company has in place to address a situation and how to report it. (c) Specific training is offered to assist employees in maintaining cargo integrity, recognizing internal conspiracies and protecting access controls. (ii) Supply chain security training of employees must include the following items: (a) Security policy of the company. (b) Potential risk to internal security of the company. (c) Maintaining cargo security. (d) Access control measures of the company. (e) Identifying and reporting suspicious cargo and personnel. (f) Conveyance management and cargo security for conveyance management personnel. (iii) Educational methods of security training and keeping records of security training for the checks conducted by the Customs are established. 13. Pre-certification verification: 13.1 Once the application is accepted and validated by the AEO Programme Manager, within 15 days thereof it will be sent to an AEO Programme Team under intimation to the applicant, for carrying out a pre-certification audit. 13.2 The AEO Programme Team will visit the business premises and carry out checks to verify the information provided is accurate .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Authorized Economic Operator (AEO) Programme - CBEC s Customs Manual 2015 - Customs

X X   X X   Extracts   X X   X X

..... fter the AEO verification, the applicant will be informed suitably within 60 days and advised of the criteria that have not been met and give the applicant time to adapt procedures to remedy the deficiency. If applicant is unable to make the required changes within the specified time limits, the AEO Programme Manager will issue a decision to reject applicant’s AEO application, explaining the reasons for rejection. This decision will be subject to the applicant’s right of appeal. 13.12 In exceptional cases, the AEO audit verification may be stopped by consensus between the applicant and the AEO Programme Manager to enable the applicant to provide additional information or to address minor problems. The period of stoppage will normally not longer than 6 months and applicant will be informed in writing of the date when the AEO verification will recommence and the revised date by which applicant can expect a decision on his application. 14. AEO Certification: 14.1 The AEO Programme Manager will inform the applicant of the outcome of his application, which should ordinarily be done within 90 days of the date on acceptance of the completed application. The period during which .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Authorized Economic Operator (AEO) Programme - CBEC s Customs Manual 2015 - Customs

X X   X X   Extracts   X X   X X

..... ported to the local Customs officers as well as the AEO Programme Team. Errors that are voluntarily disclosed will not impact the AEO status provided that the AEO status holder has (a) examined the reasons for the errors; and (b) taken appropriate remedial action to prevent recurrence. 16. Review of AEO Status: 16.1 The AEO Programme Team will review AEO status periodically to ensure continued adherence to the conditions and standards of grant of Certificate of AEO Status. Thus, it is recommended that the AEO status holder should continue to re-assess it’s compliance with the conditions of certification and act upon any identified problems as soon as they arise. To begin with, the frequency of such review will be one year. 17. Suspension of AEO Status: 17.1 The AEO Programme Manager may suspend the Certificate of AEO Status in the following cases: (a) Where there is a reasonable belief that an act has been perpetrated that is liable to lead to prosecution and /or is linked to a serious infringement of Customs law. (b) Where non-compliance with the conditions or criteria for the Certificate of AEO Status is detected and no remedial steps have been taken within 30 days thereof. .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Authorized Economic Operator (AEO) Programme - CBEC s Customs Manual 2015 - Customs

X X   X X   Extracts   X X   X X

 

← Previous

 

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||