AEO Programme (Part 2 - AEO T2/T3)

In our previous blog on AEO T1, we explored how businesses can gain a competitive edge with faster customs clearances and reduced compliance hassles. But the AEO program doesn’t stop there.

AEO T2 and T3 take these benefits to the next level, offering even greater trade facilitation, global recognition, and minimal inspections. So, what sets them apart, and how can businesses progress from T1 to these advanced tiers? Let’s dive in.

What is the eligibility for applying for AEO tier 2 certificate?

The eligibility criteria for applying for AEO Tier 2 is the same as those for Tier 1, with an additional qualification. To qualify, the applicant must implement robust internal controls to ensure the safety and security of their business and supply chain, including securing procedures, cargo, conveyances, premises, personnel, and business partners, while complying with applicable legal requirements.

What is the eligibility for applying for AEO tier 3 certificate?

In case of AEO-T3, either the entity should have had AEO-T2 status continuously for two years or when all its business partners in international supply chain have acquired either AEO-T2 or AEO-LO status.

What are the benefits of holding a AEO T2 Certificate?

In addition to the benefits of AEO T1 the following are available for holding AEO T2:

1. Higher level of facilitation for imports and exports compared to AEO-T1.

2. No seal verification or document scrutiny by Customs for non-Direct port delivery /Direct port entry importers/exporters.

3. Priority scanning for selected containers.

4. Deferred payment of duty available.

5. Priority processing of Bill of entry and shipping bills selected for assessment or examination.

6. Self-sealing of export goods without needing case-by-case approval.

7. Faster resolution of Special Valuation Branch (SVB) proceedings for related party imports.

8. Bank Guarantee requirement reduced to 25% of the standard amount, with some exceptions.

9. Facility to paste MRP stickers at the premises.

10. Onsite post clearance audit conducted once every three years instead of regular checks.

11. Access to consolidated import/export data via ICEGATE.

12. Paperless declarations allowed without submitting physical documents.

13. A "Client Relationship Manager" (CRM) will assist with concerns and coordination.

14. Refund/Rebate of Customs/Central Excise duty and Service Tax within 45 days of document submission.

15. Trade facilitation through foreign Customs administrations under Mutual Recognition Agreements.

What are the benefits of AEO T2 Certificate?

The following benefits would be provided over and above the benefits offered in T2:

1. Highest Level of Facilitation – Faster processing of import/export consignments.

2. Minimal Scanning – Containers will not be scanned unless there is specific intelligence; priority given if selected.

3. Self-Certification of Documents – Customs officers will accept self-certified copies without demanding originals.

4. No Bank Guarantee Requirement – Except in cases where mandated by the Competent Authority.

5. Risk-Based Interventions – Reduced checks from other government agencies for smoother clearance.

6. On-Site Inspection – Available upon request.

7. Faster Refunds – Customs/Central Excise duty and Service Tax refunds processed within 30 days.

What are the timelines for processing AEO T2 and T3 applications?

For AEO-T2 application, the applicant is notified within 30 days of physically submitting all required documents. The AEO team is then assigned within 15 days to conduct a physical verification, in consultation with the applicant. The team visits the applicant's premises within 90 days, and if the visit is not planned within 45 days, the applicant can contact the programme manager. After the visit, the AEO team prepares the report and makes recommendations within 60 days. The AEO programme manager informs the applicant of their AEO-T2 status within 30 days of receiving the recommendation. In total, the process from application submission to certificate issuance takes a maximum of 180 days.

In case of AEO T-3 application by an AEO T-2 status holder, the application is assigned to AEO programme team within 15 days. The timelines for further activities are same as in above para for AEO T-2.

What is the required mode for filing AEO T2 and T3 applications, and what mandatory forms must be submitted?

To apply for AEO-T2 status the applicant must first physically submit the forms under Annexure A, B, C, D, E1-5 specified in the Circular No. 33/2016-Customs to the AEO Cell under the jurisdictional Chief Commissioner of Customs. Subsequent to the physical submission the applicant shall also apply online and submit the duly filed forms under the AEO Portal.

To apply for AEO-T3, the process and forms are the same as those for AEO-T2, with the addition of Annexure F, as specified in Circular No. 33/2016-Customs.

What is the renewal process for AEO T2 and T3 status?

For AEO 2 and AEO 3, if they so desire to continue their AEO status and avail the benefits, must submit their application before lapse of their validity as per the following timeline:

AEO-T2	60 days
AEO-T3	90 days