Government highlights facilitation measures for AEO certificate holders

 

The Government of India has taken many steps to fast-track exports and imports under the Authorized Economic Operator (AEO) framework. This was stated by Union Minister of State for Finance Mr Pankaj Chaudhary in a written reply to a question in the Rajya Sabha this week.

The key facilitation measures for AEO certificate holders include:

* Higher level of facilitation in import and export of consignments.

* Facility of Direct Port Delivery (DPD) import containers and/or Direct Port Entry (DPE) for export containers.

* Automated Clearance and On-site examination for certain type of consignments.

* Facility of Deferred payment for Tier-III and Tier-II AEO certificate holders.

* Relaxed norms for submission of bank guarantee, wherever applicable.

* Recognition by Partner Government Agencies and other stakeholders.

* AEO certificate holders also receive trade facilitation support from foreign Customs administrations with whom India has signed Mutual Recognition Arrangement (MRAs), thereby enhancing their global trade efficiency. 

The Minister said that as on June 30, 2025, 5,892 AEO certificates have been issued.

Giving more details, he said that the government conducted more than 60 outreach programmes across the country in the last 3 years, with particular focus on MSMEs, to raise awareness about the AEO scheme. It also conducted a global conference titled “India AEO Dialogue: Enhancing Global Trade Partnerships” in November 2024. Besides, two conferences were held in April and May 2025 with various stakeholders to raise awareness about the AEO programme. 

To increase the participation of MSMEs, along with prioritised processing of their applications, the accreditation process was relaxed, and annexures to be provided with application for AEO certification were also rationalised. The norms for submission of bank guarantee, wherever required, were also relaxed for AEO certificate holder MSMEs.

Mutual Recognition Arrangements (MRAs) are based on mutual acknowledgment of supply chain security standards. AEO certificate holders of one country are recognised as secure and low-risk by the Customs administration of another. Accordingly, exports by Indian AEO certificate holders enjoy faster cargo release, fewer inspections and expedited Customs clearance in partner countries, thus making their exports more competitive and enhancing trade facilitation for them in partner countries, the Minister added.

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