LIBERALIZED MSME AEO PACKAGE
- January 8, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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LIBERALIZED MSME AEO PACKAGE
Subject : Government Schemes
Context : Central Board of Indirect Taxes and Customs, CBIC has taken a new initiative to introduce its flagship Liberalised MSME AEO Package.
Concept :
- In order to attract MSMEs to become Authorised Economic Operators, AEOs and avail the various benefits, the CBIC has relaxed the compliance criteria provided the MSMEs have a valid certificate from their line-Ministry.
- The relaxed requirements allow MSMEs who have filed minimum 10 Customs clearance documents in one year and who have a clean compliance record over 2 years to apply for the scheme.
- The CBIC commits to take a decision on an application for grant of AEO status within only 15 days from electronic submission of complete documents for AEO Tier T1.
- Additional benefits, like further reduction in Bank Guarantee requirements, have been introduced for MSMEs and will be expanded subsequently.
Authorised Economic Operators Programme
- AEO is a programme under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade.
- AEO is a voluntary compliance programme.
- It enables Indian Customs to enhance and streamline cargo security through close cooperation with the principle stakeholders of the international supply chain viz.importers, exporters, logistics providers, custodians or terminal operators, custom brokers and warehouse operators.
- Under this programme, an entity engaged in international trade is approved by Customs as compliant with supply chain security standards and granted AEO status & certain benefts.
- For Example , Direct Port Delivery of imported containers, Direct Port Entry of their Export Containers, high level of facilitation in customs clearance , exemption from Bank guarantees, priority for refund or rebate or duty Drawback, as well as a Client Relationship Manager at the customs port as a single point of interaction.
About WCO
- The World Customs Organization (WCO), established in 1952 as the Customs Co-operation Council (CCC) is an independent intergovernmental body whose mission is to enhance the effectiveness and efficiency of Customs administrations.
- WCO is the only international organization with competence in Customs matters and can rightly call itself the voice of the international Customs community.
- The WCO has divided its Membership into six Regions. Each of the six Regions is represented by a regionally elected Vice-Chairperson to the WCO Council.