Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Review of entity based facilitation programmes viz. Accredited Client Programme (ACP) and Authorized Economic Operator (AEO) programme - Revised Guidelines

Customs - 33/2016 - Dated:- 22-7-2016 - Circular No. 33/2016-Customs F.No.450/179/2009-Cus.IV(Pt) Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs Room No.227-B, North Block, New Delhi, 22th July, 2016 All Chief Commissioners of Customs / Customs (Prev.). All Chief Commissioners of Customs & Central Excise. All Commissioners of Customs / Customs (Prev.). All Commissioners of Customs & Central Excise. All Director Generals under CBEC . Su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f these programmes so as to provide further benefits to the entities who have demonstrated strong internal control system and willingness to comply with the laws administered by the Central Board of Excise and Customs. The prominent features of the new programme are: i. Inclusion of Direct Port Delivery of imports to ensure just-in-time inventory management by manufacturers - clearance from wharf to warehouse ii. Inclusion of Direct Port Entry for factory stuffed containers meant for export by A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

PTA origin related or any other certificates required for clearance would be accepted x. Request based on-site inspection /examination xi. Paperless declarations with no supporting documents xii. Recognition by Partner Government Agencies and other Stakeholders as part of this programme 3. The revised AEO Programme is appended to this Circular. 4. Board Circulars No. 42/2005 dated 24.11.2005 as amended regarding the ACP scheme and No. 28/2012-Customs dated 16.11.2012 regarding AEO programmest a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed 24.11.2005 as amended are being granted one time opportunity for transition to the AEO status in terms of this circular. They are required to submit their applications in terms of this circular within 90 days. In the meantime, they are being provisionally granted the status of AEO-T1till a decision is taken on their application. 7. Suitable Public Notice and Standing Orders may be issued. Further, Director General, Directorate General of Performance Management, Chief Commissioners of Central .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e same time facilitating the legitimate trade. Trade security and facilitation is one of the key determinants for the economic development of the countries. Customs, being the government organization that controls and administers the international movement of goods, is in a unique position to provide increased security to the global supply chain and to contribute to socio-economic development through revenue collection and trade facilitation. With a view to secure the international supply chain, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

faster Customs clearances and simplified Customs procedures to those business entities who offer a high degree of security guarantees in respect of their role in the supply chain. The SAFE Framework sets forth the criteria by which businesses in the supply chain can obtain authorized status as a secure partner. Such criteria address issues such as threat assessment, a security plan adapted to the assessed threats, procedural measures to prevent illegitimate goods entering the supply chain, physi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

AFE Framework. In India, the AEO programme was launched in 2011. 1.1.3 Prior to adoption of the SAFE Framework by WCO in 2005, Customs administrations all over the world, including India, were already implementing various forms of Customs compliance programmes which focused on compliance with traditional areas of Customs requirements, and which can also be considered as trade facilitation programmes, based on the Revised Kyoto Convention s "authorized persons" provisions. In India, thi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rative to develop a comprehensive unified trade facilitation programme by incorporating the existing ACP scheme and ongoing AEO programme into a revised AEO programme providing additional facilities to the legitimate trade who have demonstrated strong internal control system and willingness to comply with the laws administered by the Central Board of Excise and Customs. The objective of the revised AEO Programme shall continue to remain same as earlier that is to provide businesses with an inter .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tors other than importers and the exporters, the new programme offers only one tier of certification (i.e. AEO-LO) whereas for the importers and the exporters, there will be three tiers of certification (i.e. AEO-T1, AEO-T2 and AEO-T3). Accordingly, henceforth the AEO Programme Manager may, following an application by an economic operator, issue the following Authorized Economic Operator Certificates (hereinafter referred to as AEO certificates)to which the applicant may be eligible as per the e .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he applicant to the satisfaction of the AEO Programme Manager. 1.2.2 AEO-T2 Certificate - This certificate may be granted only to an importer or to an exporter For the purpose of this certificate, (i) the economic operator should fulfill the criteria mentioned at para 3.1 below; and (ii) all other requirements as stipulated in paragraphs 3.2, 3.3, 3.4 and 3.5 below shall be considered to have been met if the claims made in this regard in information and documents submitted by the applicant have .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

preceding the date of application for grant of AEO-T3 status; or (ii) The economic operator must be an AEO-T2 certificate holder, and its other business partners namely importers or exporters, Logistics service providers, Custodians/Terminal operators, Customs Brokers and Warehouse operators are holders of AEO-T2or AEO-LO certificate or any other equivalent AEO certificate granted by a foreign Customs. 1.3. Single Tier AEO Programme for Logistics Providers, Custodians or Terminal Operators, Cust .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o have been met if the claims made in this regard in information and documents submitted by the applicant have been physically verified by the AEO Programme Team by visiting the concerned places/premises of the applicant, on the dates decided by mutual consent by the team and the applicant, and found to be true to the satisfaction of the AEO Programme Manager. 1.4 Treatment of existing AEOs and ACPs 1.4.1 All the existing AEOs who have been granted the AEO certificate in terms of the erstwhile A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

012. Thereafter, they will have to follow renewal procedure as prescribed in this circular. In the meantime, it shall also be open for them to apply for AEO-T3 certificate, if eligible. 1.4.2 All the existing ACP clients who have been granted ACP status in terms of the erstwhile ACP circulars and who continue to possess such status validly shall be provisionally granted AEOT1 Certificate by the AEO Programme Manager within 15 days of issue of this circular, and thereafter, they shall become enti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

benefits for ACP clients who fail to submit application within 90 days shall be taken up for review. 1.4.4 However, ACP clients who submit the applications within 90 days of issue of this circular shall continue to avail the benefits of AEO-T1till a decision is taken by the AEO Programme Manager to issue them the AEO Certificates as applicable to them, and benefits in terms of this circular is extended to them. In case, they are not found to be eligible for the AEO Certificates, they would no lo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

would be processed in terms of the conditions specified in this circular. Further those applicants whose applications are once rejected under the current scheme are free to apply again, if grounds on which their application is rejected are no longer valid, and they are eligible for the AEO status. 1.4.7 The holders of AEO Certificates (hereinafter referred to as the AEOs) shall be entitled to benefits laid down in paragraph 1.5 below, as may be applicable to them. However, such benefits may be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the AEO Certificate Number to the Customs Authorities. 1.5 Benefits of an AEO Certificate The scope of the benefits to the AEOs based on their categories would be as mentioned below: 1.5.1 Benefits for AEO-T1: 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 and Service Tax cases would be done pr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ered in T1: i. They shall be accorded higher level of facilitation (as compared to AEO-T1 in imports and export of their consignments. ii. For Importers/Exporters not opting for DPD/DPE, 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. Facili .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ceedings 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ll appoint a "Client Relationship Manager"(CRM) 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. xv. The refund/Rebate of Customs/Central Excise duty and Service Tax would be granted w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 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 Bank guarantee would not be applicable in cases where the Competent Authority orders furnishing of Bank Guarantee f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts. 1.5.4 Benefits for AEO-LO: Sl. 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 transshipped cargo (Foreign to Foreign), for the pre-sorted containers wherein Cargo does not require segregation, ra .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 of CBLR,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 so .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e AEO shall be taken into account for determining the frequency of audit. It is also clarified that AEO s undergoing OSPCA shall not be subjected to routine transactional PCA. Detailed guidelines on risk based OSPCA will be issued subsequently. Section 2 Application for an AEO certificate 2.1 An applicant for grant of any of the aforesaid four AEO statuses, namely AEO-T1, AEO-T2, AEO-T3 and AEO-LO, should submit the application in the proforma enclosed. The application form contains ten annexure .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

YES 7 Annexure- E.3 Managing commercial and (where appropriate) transport records YES YES YES YES 8 Annexure- E.4 Financial Solvency YES YES YES YES 9 Annexure- E.5 Safety and Security NO YES YES YES 10 Annexure-F Business Partner Details NO NO YES NO Note: Annexure E.5 itself is in seven parts E.5.1 to E.5.7 and all of them would need to be filled in for grant of AEO-T2, AEO-T3 or AEO-LO status. 2.2 In case the applicant is already holder of any one of the four AEO certificates, he should clea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the requirements for issuing the AEO certificate. 2.4 The application should be sent to the AEO Programme Manager, Directorate General of Performance Management, Customs & Central Excise, D Block, I.P. Bhawan, I.P. Estate, New Delhi - 110002. 2.5 The Additional Director General, Directorate General of Performance Management, Customs & Central Excise, D Block, I.P. Bhawan, I.P. Estate, New Delhi - 110002 will be the AEO Programme Manager and AEO Programme Team will comprise officers from .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

perators, Customs House Agents and Warehouse Owners. Others who may qualify include port operators, authorized couriers, stevedores. The list is not exhaustive. 3.1.2 Businesses that are not involved in Customs related work / activities will not be entitled to apply. This means that in general, banks, insurance companies, consultants and the like categories of businesses will not be eligible for AEO status. 3.1.3 Application for AEO status will only cover the legal entity of the applicant and wi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ld provide evidence which may include: (i) A certificate of registration issued by the Registrar of Companies. (ii) Details of places/locations where goods are being handled, e.g. loading, unloading, storage etc., in the course of supply to/from international supply chain. (iii) Proof that the business has its own accounts. 3.1.6 The applicant should have business activities for at least three financial years preceding the date of application. However in exceptional cases, on the basis of physic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of Entry or Shipping bills during the last financial year. 3.1.8 An AEO status applies only to the legal entity applying for such status in its own capacity and covering its role in the international supply chain. Therefore, AEO status can be granted to a Customs Broker, but this will not confer similar status on its client importers / exporters who will need to apply separately for that status. 3.1.9 The AEO Programme is open to all economic operators, including micro, small and medium enterpr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r granting the above AEO Certificates. The AEO Programme Manager shall take into account such factors as the size of the MSMEs, the legal status (e.g. proprietorship, partnership etc), the structure, the key business partners and also the specific economic activity of the economic operator while applying these eligibility conditions and criteria specified under paras 3.3 and 3.5. In particular, the AEO Programme Manager shall take into account the possible difficulties for MSMEs in meeting with .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ators receive high quality service. All communication between AEO/AEO applicants and Programme Manager shall be through e-mail at Aeo.India@icegate.gov.in. 3.2 Legal Compliance: 3.2.1 There should be no show cause notice issued to them during last three financial years involving fraud, forgery, outright smuggling, clandestine removal of excisable goods or cases where Service Tax has been collected from customers but not deposited to the Government. 3.2.2 There should be no case wherein prosecuti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

be taken on issue or continuance of AEO status by AEO Programme Manager. Explanation: for para 3.2.1, 3.2.2 and 3.2.3 above, the cases where the show cause notices have been dropped or decided in favour of the applicant by the adjudicating or appellate authorities will not be considered. 3.2.4 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 bodie .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ate, transport records. To enable the AEO Programme Manager to establish that the applicant indeed has such a system, the applicant shall: i. Maintain an accounting system consistent with Generally Accepted Accounting Principles (GAAP) / International Financial Reporting Standards (IFRS) which facilitates audit-based Customs control; ii. Have an administrative set up which corresponds to the type and size of business and which is suitable for the management of the flow of goods, and have interna .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

establish suitable contacts to inform the Customs authorities of such occurrences; vi. Have satisfactory procedures for verifying the accuracy of Customs declarations. vii. Have appropriate information technology security measures to protect the applicant s computer system from unauthorized intrusion and to secure the applicant s documentation. 3.4 Financial solvency An applicant must be financially solvent during the three financial years preceding the date of application. The applicant should .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hain, in addition to any specific legal requirements that may be applicable to the business.In order to satisfy the requirements of AEO status, the applicant will need to ensure security of procedures, cargo, procedures, conveyances, premises, personnel and business partners. The applicant's security and safety standards shall be considered to be appropriate if the following conditions are fulfilled: 3.5.2 Procedural Security In order to ensure security of the international supply chain, the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eyance and during transport. The manual should also stipulate how seals are to be controlled and affixed to cargo and transport conveyances. ii. 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. iii. Proper documentation of management procedure should be in place to ensure that all documentation used in the clearing of cargo is legible, complete, accurate and protected against .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

argo 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, and other significant discrepancies or anomalies must be resolved and/or investigated appropriately. 3.5.3 Premises Security: In order to ensure security of the international supply chain, the applicant must ensure that the buildings to be used in connection with the operations to be covered by the certificate are .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nitoring or control measures. iii. Authorized personnel must control the issuance of locks and keys. iv. Adequate internal and external lighting must be provided especially for entrances and exits, cargo handling and storage areas, fence lines and parking areas. v. Gates through which vehicles and/or personnel enter/exit must be manned, monitored or otherwise controlled. Vehicles accessing restricted areas must be parked in approved area and their license plate numbers furnished to Customs upon .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ling structure should be created to segregate domestic, international, high value and hazardous cargo. xiii. The number of gates should be kept to the minimum necessary for proper access and safety. xiv. Unauthorized vehicles should be prohibited from parking in or adjacent to cargo handling and storage areas. 3.5.4 Cargo Security: In order to ensure security of the international supply chain, the applicant must have in place appropriate measures for the handling of goods include protection agai .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for air consignments/courier consignments any international seal compatible with standards of PAS/ISO 17712 shall be used. However in case of maritime containerized cargo only PAS / ISO 17712 seals shall be used. iv. The integrity of container seals should be checked by the authorized person by following the procedure prescribed in the security policy manual. v. Only authorized personnel should distribute container seals and safeguard their appropriate and legitimate use. vi. When appropriate t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and Customs papers. ix. Internal control procedures should exist when discrepancies and/or irregularities are discovered. 3.5.5 Conveyance Security: In order to ensure security of the international supply chain, the applicant must ensure that the conveyances to be used in connection with the operations to be covered by the certificate are handled in a manner which ensures security of the cargo. With this view, the applicant must: i. ensure to the extent possible that all conveyances used for th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he AEO Programme Team and the Customs. iv. ensure that potential places of concealment of illegal goods on conveyances are regularly inspected, v. ensure that transporters make sure that conveyance integrity is maintained while the conveyance is en route transporting cargo to export/import points or import/transit containers by utilizing a tracking and monitoring activity log or records. vi. ensure that pre-determined routes are identified by the dispatcher, and procedures must consist of random .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sonnel Security: In order to secure the international supply chain, the applicant must conduct, as far as possible, security screening of prospective employees to be employed in security sensitive positions, and carry out periodic background checks. With this view, following criteria should be fulfilled by the applicant: i. All reasonable precautions must be taken when recruiting new staff to verify that they are not previously convicted of security-related, Customs or other criminal offences. i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y remove identification and access to premises and information for employees whose employment is terminated. 3.5.7 Business Partner Security In order to secure the international supply chain, the applicant must have implemented measures to ensure a clear identification of his business partners. With this view, following criteria should be fulfilled by the applicant: i. The applicant must have written and verifiable process, including the capability of financial soundness and compliance with the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e with security criteria: a. Contractual document b. A completed self-assessment security questionnaire from the applicant. c. A written statement from the business partner demonstrating their compliance with AEO security criteria. d. Senior business partner officer attesting to compliance. e. Documents from the business partners demonstrating their compliance with and equivalent and accredited security program administered by a foreign Customs authority. iv. Periodic reviews of business partner .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ained for employees to foster awareness of the threat at each point in the supply 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 se .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

corded in an AEO Programme database. 4.2 Return of application: 4.2.1 If application is incomplete or deficient, the applicant will be suitably informed within 30 days of the receipt. 4.2.2 In following cases, the application will not be processed until the deficiencies, as indicated, are rectified: i. Which is incomplete - This may be resubmitted with the complete information. ii. Where the application has not been made by a legal person - This can only be resubmitted by the concerned legal ent .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

h 5.7.3 has elapsed after the date of revocation. 4.3 Rejection of application: The application shall not be accepted in any of the cases: (i) Where the applicant is not eligible for grant of AEO status, or (ii) Where the deficiency noticed in the application cannot be remedied. The information regarding the rejection of such application will be given to the applicant within 30 days of the receipt of the application. 4.4 Processing of application: 4.4.1 On receipt of the complete application and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hall be sent in writing. 4.4.3 The applicant shall submit such information and/or documents within a reasonable time. 4.4.4 In case of an application for grant of AEO-T1 status, once the eligibility conditions and criteria for granting the AEO certificate as mentioned under the Section 3 of this circular are found to have been met by the applicant to the satisfaction of the AEO Programme Manager, the applicant shall be issued the AEO-T1certificate within 30 days of submission of the information .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ation and documents. The date(s) for physical verification would be decided by the team in consultation with the applicant. 4.4.5.1 The AEO Programme Team will, within 90 days, visit the business premises for verification of the information and documents provided. Such visit shall be made on a convenient date after consulting the applicant. 4.4.5.2 If within 45 days of the date of intimation issued in terms of paragraph 4.4.5, the applicant has not been contacted by the AEO Programme Team, then .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

status. The examination as well as its results shall be documented by the AEO Programme team. 4.4.5.5 In case several premises of the applicant are run in a similar way by standard systems of record keeping and security etc. there will be no need for the AEO Programme Team to visit all of them. However, if the business of the applicant covers a range of activities or different premises have different method of operating, then it may be necessary for more visits to be made. 4.4.5.6 The duration o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

following: (i) Information on Customs matters. (ii) Remedial action taken on previous Customs errors, if any. (iii) Accounting and logistic systems. (iv) Internal controls and procedures. (v) Flow of cargo. (vi) Use of Customs House Agents. (vii) Security of Computers/IT and documents. (viii) Financial solvency. (ix) Safety and security assessment - premises, cargo, personnel etc. (x) Logistic processes. (xi) Storage of goods. 4.4.5.8 During the course of physical visit/verification, the person .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mmendation can be seen by applicant who will get the opportunity to sign the same, but this will not be a mandatory requirement. 4.4.5.10 Within 30 days of such recommendation by the AEO Programme Team, the applicant will be suitably informed, including issue of the appropriate AEO certificate for AEO-T2 or AEO-LO status, by the AEO Programme Manager. 4.4.6 Where the application for grant of AEO-T2 or AEO-LO status is not accepted by the AEO Programme Manager after the verification by the AEO Pr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

O status and the AEO Programme Manager in order for the applicant to provide additional information or to permit minor problems to be addressed. The period of stoppage will normally not be longer than six 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. 4.4.8 In case an application for grant of AEO-T3 status is submitted by a holder of AEO-T2 status, who has bee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

4.4.6 and 4.4.7 above. 4.4.9 In case an application for grant of AEO-T3 status is submitted by a holder of AEO-T2 status, who has not been continuously enjoying the AEO-T2 status for a period of two years or more, but who satisfies the eligibility condition mentioned at paragraph 1.2.3 (ii), the application will be assigned to a specific AEO Programme Team within 15 days to carry out physical verification of the information and documents submitted in Annexure-F only. The date(s) for physical ver .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

4.4.6 and 4.4.7 above. 4.5 Certification: 4.5.1. If AEO status is granted, the AEO Programme Manager shall send the Certificate of AEO Status to the applicant in hard copy along with an electronic copy. The Certificate shall bear the AEO logo that may be used where it is appropriate to do so for the business, for example, company stationary, sign age on vehicles or other publicity materials. The copyright for the logo is owned by the AEO Programme Manager on behalf of the Indian Customs Adminis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Certificate number should not be part of their advertisement. Section 5 Post-Certification Provisions 5.1 Validity of AEO Certificate The validity of AEO certificate shall be two years for AEO-T1, three years for AEO-T2, and five years for AEO-T3 and AEO-LO. 5.2 Renewal of AEO certificate 5.2.1 The AEOs, if they so desire to continue their AEO status and avail the benefits, must submit their application as stipulated under Section 2 of this circular, before lapse of their validity as per the fol .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

atus holder should maintain their eligibility by adhering to the appropriate standards. 5.3.2 The holder of a Certificate of AEO Status is required to notify any significant change in business and processes which may affect the AEO status to the AEO Programme Team. These changes may include the following: (i) Change to the legal entity. (ii) Change of business name and/or address. (iii) Change in the nature of business i.e. manufacturer / exporter etc. (iv) Changes to accounting and computer sys .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

must be reported to the local "Client Relationship Manager" (CRM) 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: (i) Examined the reasons for the errors. (ii) Taken appropriate remedial action to prevent recurrence. 5.4 Review of AEO Status: 5.4.1 The AEO Programme Team will review AEO status periodically to ensure continued adherence to the conditions and standards of grant of Certificat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

5.5.1 The AEO Programme Manager may suspend the Certificate of AEO Status in the following cases: i. Where any non-compliance with the conditions or criteria for the Certificate of AEO Status has been detected; or ii. In the case of a Custodian or Custom Broker or Warehouse Operator, where the basic license as a Custodian or Custom Broker or Warehouse Operator, as the case may be, has been suspended by the competent authority. 5.5.2 In the case of an AEO importer or an AEO exporter, if any show .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lt the jurisdictional Commissionerate before arriving at the final decision in this regard. The decision to downgrade the AEO status shall be purely an administrative decision. Restoration of suspended/downgraded AEO Status: 5.6.1 Where AEO status had been suspended on account of detection of any non-compliance with the conditions or criteria for the Certificate of AEO Status, and if the AEO holder takes the necessary remedial measures to the satisfaction of the AEO Programme Manager within 60 d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e notified by him. 5.6.3 Where AEO status had been suspended on account of issue of a show cause notice, and if the ratio of disputed duty demanded or drawback demanded or sought to be denied in SCNs issued under the Customs Act, 1962 during the last three years to the total duty paid and drawback claimed during the said period is not more than ten percent, the AEO Programme Manager may consider restoration of AEO status, and if deemed appropriate may restore the AEO status from a date to be not .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

AEO holder fails to take the remedial measure within 60 days to have the suspension withdrawn; or ii. Where there is a reasonable belief that an act has been perpetrated that is liable to lead to prosecution and /or is linked to an arrest of person under Customs Act, 1962 as mentioned in Para 3.2.2; or iii. A show cause notice has been issued to them involving fraud, forgery, outright smuggling, clandestine removal of excisable goods or cases where Service Tax has been collected from customers .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

4 In case the AEO status is revoked, the AEO-T3and AEO-LO status holder will not be entitled to reapply for the AEO certificate for a period of three years from the date of revocation. APPLICATION FORM FOR GRANT OF AEO STATUS (contains ten annexures A, B, C, D, E.1 to E.5 and F) (Please fill-up the annexures as may be applicable to the applicant) Annexure - A (applicable for grant of AEO-T1, AEO-T2, AEO-T3 and AEO-LO) 1. Name of Company / Economic Operator: 2. Category of business entity: (i.e. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dress: 6. Company registration No.: (in case of companies registered under the Companies Act, 1956 and / or Limited Liability Partnership Act, 2008) 7. PAN (copy may be provided) 8. List of sites, under control, where import / export goods are handled, e.g. packed / unpacked / loaded / unloaded / consolidated etc. in the course of supply to/from international supply chain. Please include site address, phone number and contact person. (A separate list can be attached) 9(a). Major Items of import .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

py of evidence): Signature: Place: Full Name: Date: Position in Company: * The applicant should nominate a readily accessible central point of contact person (who should be a senior management official within the administration of the applicant) in order to make available to the AEO Programme Manager or to any officer authorized by the AEO Programme Manager all the information necessary for the proving compliance with the requirements for issuing the AEO certificate. Annexure - B (applicable for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

esses, procedures etc., in respect of the following: - Procedural security. - Document security. - Physical security. - Access controls. - Personnel security. - Training and skill upgradation. - Compliance with other Government security related requirements, if any. Annexure - C (applicable for grant of AEO-T1, AEO-T2, AEO-T3 and AEO-LO) PROCESS MAP Process map should illustrate the flow of goods and documentation/ information from receipt of order to the point of export/delivery/receipt of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ghboring properties. - All access points to the site (e.g. vehicle, rail and pedestrian entrances) with traffic flows. - All buildings identified with access ways (e.g. administration office, export/import storage areas, export/import packing areas, export container movement). - Internal and/or external lighting facilities that contribute to security. - Other security features (e.g. CCTV, electronic access gates). - Visitor, contractor and company personnel parking areas. - Perimeter fences with .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ustoms, Central Excise, Service Tax and other Department's licenses/ registration/ certificates? If yes, copies of these may be provided. Type of business entity: Whether Proprietorship Firm, Partnership Firm, Public or Private Limited Company etc.? Copy of the concerned registration etc. may be provided. Whether your entity is established in India? If yes, please provide evidence in Remarks column which may include: (iv) A certificate of registration issued by the Registrar of Companies. (v .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

business activities for at least three financial years preceding the date of application? Whether you have filed or handled at least 25 documents i.e. Bills of Entry or Shipping bills, with the Customs Authorities during the last financial year. A summary sheet may be provided. Whether the applicant has ever been convicted of a criminal offence? If so complete details of the same should be submitted. Note: 1. The Self-Assessment can be carried out by the applicant themselves or through a third .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y or exercising control over its management; (iii) the person responsible in the applicant company for customs matters. If yes, please indicate the details of the cases. Further, submit details related to volume of the customs related operations in 'Remarks' column. (b) Whether any SCN has been issued during last three financial years involving fraud, forgery, outright smuggling, clandestine removal of excisable goods or cases where Service Tax has been collected from customers but not d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng the preceding three financial years? iii. What is the ratio of the disputed duty amount involved in the Show Cause Notices (SCNs) to the total duty paid/ drawback claimed during the preceding three years? (e) i. Whether procedures are in place to identify and disclose any irregularities or errors to the Customs authorities or, where appropriate, other regulatory bodies? If yes, enclose evidence in support of this. ii. Whether system is in place to take appropriate remedial action when irregul .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hich corresponds to the type and size of Business and which is suitable for the management of the flow of goods, and have internal controls capable of detecting illegal or irregular transactions? (c) Wherever applicable, have satisfactory procedures in place for the handling of licenses and authorizations connected to export/import? (d) Whether having satisfactory procedures in place for archiving of the company's records and information, and also for protection against the loss of informati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sion and to secure the applicant's documentation? Note: The applicant should enclose appropriate documentary evidences in support of above claims. Annexure E.4 Financial Solvency (applicable for grant of AEO-T1, AEO-T2, AEO-T3 and AEO-LO) E.4 Compliance Yes No Remarks Whether the applicant has been financially solvent during the three financial years preceding the date of application? (Solvency would generally be defined as good financial standing that is sufficient to fulfill the commitment .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y has been defaulted in payment of due taxes during the past three years? Whether there is solvency certificate issued by the Statutory Auditor?If yes, provide the copy. Whether the business entity is currently listed as insolvent, or in liquidation or bankruptcy? Annexure E.5 Safety and Security (contains seven parts E.5.1 to E.5.7) (applicable for grant of AEO-T2, AEO-T3 and AEO-LO) (Note: The applicant should enclose appropriate documentary evidences in support of their claims under this sect .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to ensure the integrity and security of processes relevant to the transportation, handling, and storage of cargo in the supply chain (c) Whether there is proper documentation of management procedure 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? (d) Whether there is a procedure in place to ensure that information received from business partners is reported ac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

all shortages, overages, and other significant discrepancies or anomalies are resolved and/or investigated appropriately? E.5.2 Premises Security: Yes No Remarks (a) Whether building is fully secured against unlawful entry? (b) Whether all external and internal gates, fences and windows are fully secured with locking devices or alternative access monitoring or control measures? (c) Whether the issuance of locks and keys is controlled by management or authorised personnel only? (d) Whether adequa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re permitted access? (h) Whether access to document or cargo storage areas is restricted? (i) Whether there are appropriate security systems for access control? (j) Whether restricted areas have been clearly identified? (k) Whether the integrity of structures and systems is periodically inspected? (l) Whether perimeter fencing exists for enclosing the areas around cargo handling and storage facilities? (m) Whether interior fencing exists within a cargo handling structure to segregate domestic, i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

meet the current PAS / ISO 17712 standards for high security seals especially with maritime containerized cargo? (d) In cases of air consignments/courier consignments where it is not possible to procure and use PAS / ISO 17712 seals, whether any international seal compatible with standards of PAS/ISO 17712 is being used? (e) Whether the integrity of container seals are being checked by the authorized person by following the procedure prescribed in the security policy manual? (f) Whether only au .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

en an unauthorized access or tampering is discovered. (j) Whether goods are uniformly marked or stored in designated areas only? (k) Whether appropriate procedures exist to weigh / tally the goods and compare them against transport documents, purchase/sales orders and Customs papers? (l) Whether internal control procedures exist to deal with situations when any discrepancies and/or irregularities are discovered? E.5.4 Conveyance Security Yes No Remarks (a) Whether, to the extent possible, all co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts, which should be available to the AEO Programme Team and the Customs? (d) Whether potential places of concealment of illegal goods on conveyances are regularly inspected? (Such places include all internal and external compartments & panels.) (e) Whether the transporters are required to maintain the conveyance integrity while it is en route transporting cargo to export/import points or import/transit containers by utilizing a tracking and monitoring activity log or records? (f) Whether pre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to ensure that the logs are maintained and conveyance tracking and monitoring procedures are being followed and enforced? E.5.5 Personnel security: Yes No Remarks (a) Whether all reasonable precautions have been taken when recruiting new staff to verify that they are not previously convicted of security-related, Customs or other criminal offences? (b) Whether periodic background checks are conducted on employees working in security sensitive positions? (c) Whether employee identification proced .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

urity Yes No Remarks (a) Whether the applicant has written and verifiable process, including the capability of financial soundness and compliance with the safety requirement set by the contracts as well as the capability of detection and correction of safety defects, for selection of business partners? (b) For AEO business partners, whether the applicant has obtained the copies of their AEO certificate? (c) For non-AEO business partners, whether the applicant has obtained written confirmation fr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

m the business partners demonstrating their compliance with and equivalent and accredited security program administered by a foreign Customs authority. (d) Whether a system exists to encourage other concerned business entities/trading partners to assess and enhance supply chain security? (e) Whether a system is in place for periodic reviews of business partner's processes and facilities based on risk, and maintenance of security standards by the business partners is as required by the applic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version