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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.
