NEW DELHI : The Central Board of Indirect Taxes and Customs (CBIC) has carried out away with renewal of Authorised Economic Operator (AEO) certification after each three years for Tier 1 or T1 stage entities, it stated in a notification issued .
From August 1, all such entities licensed on or after April 1, 2019 shall be auto renewed within the system, with none finish date, the Board stated.
“Taking into consideration the reported difficulties confronted by the AEO-TI (together with MSME AEO-TI) entities in looking for renewal and with a view to scale back their compliance burden, the Board has determined to permit the power of steady AEO certification/auto renewal for AEO-TI entities. Thus, these entities would now not be required to hunt periodic renewal of their AEO-TI certification,” the Board stated in a round issued to all subject models.
AEOs are importers or exporters concerned in worldwide motion of products that decide for the AEO certification programme. The certification is internationally recognised and offers such corporations advantage of lowered time of clearance, decrease prices and minimal disruption in cargo circulate via customs, as they’re thought of safe and dependable buying and selling companions.
T1 AEO is the fundamental stage certification given underneath the programme, but it surely allows excessive stage of facilitation at ports and thru customs, together with different advantages similar to 24/7 clearing of products and 50% much less financial institution assure fee in comparison with non-AEOs, wanted for clearance.
Auto-renewal will significantly ease compliance for such corporations and decrease time and prices concerned.
The Board stated that facility of steady AEO certification or auto renewal for such entities shall be topic to submission of annual self-declaration between October 1 and December 31 every year, and evaluation.
At current validity of AEO T1 certificates is three years and renewal requires an utility to be made a month previous to expiration. The standing is reviewed each three years.
The Board stated it reviewed the AEO programme within the background of reported difficulties being confronted by tier one entities in renewal of their certification particularly throughout the on-going pandemic.
Some checks to the auto-renewal course of have been put in place. In instances the place any change in compliance as per self-declaration is observed or any adversarial enter is acquired from any subject formation or investigation company, the zonal AEO Programme Supervisor can revoke certification following a complete compliance evaluation foundation a minimum of two annual self-declarations filed after issuance of AEO Tl certificates or from the date of final auto renewal.
Solely in case of adversarial findings the entity would learn, and as soon as revoked, a brand new certificates could be granted solely via recent utility.
The AEO entities licensed between 1st January to 31 st December of every 12 months shall be exempted from submitting the annual declaration for that 12 months. Accordingly, AEO-TI entities licensed on or after January 1, 2021 for the current 12 months is not going to be required to submit annual self-declaration for the current 12 months.
Source : The Economic Times