Centre accords AEO status to gem and jewellery sector
- April 27, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Centre accords AEO status to gem and jewellery sector
Subject: Economy
Sec: External Sector
Inclusion of the Gem and Jewellery Sector:
- The Gem & Jewellery Export Promotion Council (GJEPC), the apex body of the sector, announced that the gem and jewellery sector is now included in the AEO program. Previously, this sector was excluded.
- Following proactive efforts and advocacy by the GJEPC with relevant ministries, the Ministry of Finance declared that units within the gem and jewellery industry are eligible to apply for AEO status and enjoy its benefits.
- Asian Star, a diamond and diamond jewellery manufacturer, became the first company in this sector to be granted AEO status in India, following its application along with 19 other companies.
- This extension of AEO status to the gem and jewellery sector is expected to boost the industry by providing faster and more cost-effective export processes.
About the Authorized Economic Operator (AEO) Program:
- The Authorized Economic Operator (AEO) program is part of the World Customs Organisation (WCO) SAFE Framework of Standards aimed at securing and facilitating global trade.
- This program enhances international supply chain security and eases the movement of legitimate goods.
- Entities engaged in international trade can gain AEO status by complying with supply chain security standards, which brings certain benefits.
- Initially introduced as a pilot project in 2011 by the Customs Department, the AEO program has played a significant role in simplifying export operations and reducing costs for exporters across various sectors.
AEO in India:
- The AEO program in India aligns with the commitments under Article 7.7 of the World Trade Organization’s Trade Facilitation Agreement (WTO TFA).
- The program is voluntary and seeks to improve cargo security through collaboration with key players in the international supply chain, including importers, exporters, logistics providers, and others, as noted by the Central Board of Indirect Taxes (CBIC).
World Customs Organisation (WCO):
- Established in 1952 as the Customs Co-operation Council (CCC)
- It is an independent intergovernmental body whose mission is to enhance the effectiveness and efficiency of Customs administrations.
- Today, the WCO represents 186 Customs administrations across the globe that collectively process approximately 98% of world trade.
- As the global centre of Customs expertise, the WCO is the only international organization with competence in Customs matters and can rightly call itself the voice of the international Customs community.
- WCO Secretariat is based in Brussels, Belgium.
WCO SAFE framework of standards:
- In June 2005, the WCO Council adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) aimed at deterring international terrorism, securing revenue collections, and promoting global trade facilitation.
- The Authorized Economic Operators (AEO) Programme, a key Customs-Business partnership initiative, was introduced in 2007 as part of the SAFE Framework.
- The SAFE Framework serves as the global Customs community’s unified response to supply chain security threats while also supporting the facilitation of legitimate and secure businesses.
- The 2021 update of the SAFE Framework includes enhancements such as stronger cooperation between Customs and other government agencies, the promotion of smart security devices for real-time monitoring of goods, and the development of regional Customs union AEO programs and mutual recognition.
Source: TH