Recognising their
critical contribution in supporting the economy especially during the present
difficult times of COVID-19 pandemic, Central Board of Indirect Taxes &
Customs (CBIC) has taken a new initiative to introduce its flagship Liberalised
MSME AEO Package for Micro Small and Medium Enterprises (MSMEs).
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 documentary requirements have also been appreciably simplified. Another
feature is that 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.
CBIC’s flagship Liberalised MSME AEO Package scheme is a voluntary
compliance programme which enables swifter customs clearance for accredited
stakeholders in the global supply chain viz. importers, exporters, logistic
service providers, custodians etc. The approved AEOs derive various benefits
such as, inter alia, the facility of Direct Port Delivery (DPD) of
imported containers, Direct Port Entry (DPE) of their Export Containers, high
level of facilitation in customs clearance of their consignments thereby
ensuring shorter cargo release time, exemption from Bank guarantees, priority
for refund/ rebate/ duty Drawback, as well as a Client Relationship Manager at
the customs port as a single point of interaction. Another important benefit
available to specified AEOs is that their payment of Customs duty is deferred
and need not to be paid before the clearance of the imported goods by Customs.
An added advantage for Tier 2 AEOs is that their exports to certain countries
are accorded facilitation by the foreign customs administration with whom India
enters into a mutual recognition agreement/arrangement.
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