CBIC Host Global India Authorised Economic Operator (AEO) Programme

December 2, 2024

The Central Board of Indirect Taxes and Customs (CBIC) recently hosted a global India Authorised Economic Operator (AEO) programme, which took place on November 28-29, 2024, in New Delhi, and involved collaboration with the World Bank. Key figures included CBIC Chairman Shri Sanjay Kumar Agarwal and Secretary of the Department of Revenue, Shri Sanjay Malhotra. Representatives from 18 trade partner countries attended.

AEO Programme Overview

The AEO programme is part of the World Customs Organisation’s SAFE Framework, which aims to enhance global trade security and efficiency. The programme is voluntary, allowing Indian Customs to improve cargo security, and engage various stakeholders in the supply chain, including importers and logistics providers.

Programme History

India launched the AEO programme in 2011 and was strengthened in 2016 to better support trade facilitation. The Directorate of International Customs manages the programme under CBIC.

On October 31, 2024, India has 5,947 AEO-certified entities. The certification operates under a three-tier system. An additional tier exists for logistics operators, ensuring comprehensive coverage.

Mutual Recognition Agreements (MRAs)

India has established MRAs with several countries. These include South Korea, the USA, and Australia. MRAs allow for mutual recognition of AEO status, simplifying trade processes.

Joint Action Plans (JAPs)

India has signed Joint Action Plans to pursue MRAs with various nations. These include Japan, the UK, and South Africa. Recently, a JAP with Brazil was signed to initiate MRA discussions.

The government aims to expand the MRA programme, which will involve more regional and bilateral partnerships. Trust and technology will play key roles in enhancing tax administration and trade security.

Important Facts for Exams:
AEO Programme – The Authorised Economic Operator programme enhances global trade security. Launched in India in 2011, it is part of the World Customs Organisation’s SAFE Framework.
Mutual Recognition Agreements (MRAs): MRAs facilitate mutual recognition of AEO status. India has established MRAs with several countries, simplifying trade processes and enhancing international cooperation in customs.
Joint Action Plans (JAPs): Japan and the UK are among nations with which India signed Joint Action Plans. JAPs aim to establish MRAs, encouraging deeper trade relationships and cooperation.
Directorate of International Customs – This directorate manages the AEO programme under CBIC. It plays important role in enhancing trade facilitation and ensuring compliance with international standards.

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