CBIC Proposes Faster AEO Processing With Uniform Procedure, Time-Bound Approvals To Ease Compliance

New Delhi, Sep 17 (KNN) The Central Board of Indirect Taxes and Customs (CBIC) is considering measures to simplify and speed up processing under India's Authorised Economic Operator (AEO) Programme, including a uniform procedure across customs zones, time-bound processing and a single-deficiency approach for applicants.

The proposals emerged from discussions at the annual Customs Consultative Group meeting in Kolkata and representations from trade, the Finance Ministry said on Wednesday, ANI reported.

Unified Procedure, Clearer Compliance

The proposed reforms include a common Standard Operating Procedure for AEO applications across zones, a clear checklist for applicants and Zonal AEO Programme Managers, and sharing deficiency communications directly with applicants.

CBIC is also considering greater clarity on financial solvency requirements, along with strengthening dedicated Client Relationship Managers and trained validators.

CBIC Member (Customs) said Customs administration has moved from a transaction-centric approach towards a risk-based and trust-oriented model since the current AEO framework was introduced in a recent Customs circular. 

Focus on MSMEs, Technology

CBIC Chairman Vivek Chaturvedi outlined five priorities for the next decade of the programme: technology-driven trade facilitation, greater inclusion of MSMEs, seamless inter-agency coordination, expanded Mutual Recognition Arrangements and stronger coordination across indirect tax verticals.

A structured feedback response form has also been launched on the AEO portal to enable AEO entities and other stakeholders to provide continuous inputs.

The AEO Programme promotes voluntary compliance and supply-chain security while facilitating faster and more predictable movement of goods across borders.

EMI Scheme Documentation Cut

CBIC also highlighted the Eligible Manufacturer Importer (EMI) Scheme as a pathway for compliant businesses to progress towards higher AEO tiers.

In a separate compliance-easing measure, documentation requirements under the EMI Scheme have been reduced from 10 documents to three in another recent Customs circular dated September 3. The revised requirement came into effect on September 15.

As of now, 5,967 entities, including importers, exporters, manufacturers, customs brokers, logistics operators and warehouse operators, have been certified under the AEO Programme across T1, T2, T3 and LO categories.

(KNN Bureau)