Daily News Analysis » April 2024 » Authorized Economic Operator (AEO) status: 29 April 2024

Authorized Economic Operator (AEO) status: 29 April 2024

Why in news?

  • The Ministry of Finance has granted Authorized Economic Operator (AEO) status to the gem and jewelry sector, as part of efforts to promote ease of doing business.

About AEO:

    • It is an initiative to protect and ease international trade that is run under the World Customs Organisation (WCO) SAFE Framework of Standards.
  • Objective: to enhance international supply chain security and facilitate the movement of goods.
  • Benefits: faster clearance times, reduced inspections, enhanced security, and enhanced partner communication in the supply chain.

AEO in India:

  • 2011: Introduced by the Central Board of Indirect Taxes and Customs (CBIC).
    • The Indian AEO initiative is built on the security criteria outlined in the WCO SAFE Framework.
  • Advantages:
    • Acknowledgment on a global scale as trustworthy, compliant, and safe business partners in international trade.
  • It allows Indian Customs to work closely with the main players in the global supply chain, such as importers, exporters, logistics companies, etc., to improve and expedite cargo security.           
  • Facilitating business transactions and imitating international best practices could be achieved by a more relaxed AEO accreditation procedure.