What is AEO-T2?

AEO T2 (Authorized Economic Operator Tier 2) is the second tier of the AEO certification program introduced to secure and streamline global trade while enhancing supply chain security. This tier involves both document-based verification and physical site inspections, making it a more comprehensive certification compared to AEO T1.

The AEO T2 certification is designed for importers and exporters who demonstrate a higher level of compliance with customs laws, security measures, and international trade practices. This tier provides greater trade facilitation benefits, faster customs clearances, and reduced regulatory interventions due to the enhanced level of scrutiny during the certification process.

Who Should Apply for AEO T2?

AEO T2 is suitable for businesses actively involved in international trade that have established a strong compliance history and are ready to undergo both documentary checks and physical site verification by customs authorities. This tier is ideal for organizations seeking enhanced trade facilitation benefits and global recognition as secure and compliant trade partners.

Eligibility Criteria

To qualify for AEO T2 certification, a business must meet the following criteria:

1. Minimum Document Handling Requirement:
   1. Must have handled at least 25 shipping documents (Shipping Bills & Bills of Entry) in the last financial year.
   2. For MSMEs, the requirement is reduced to 10 shipping documents.
2. Engagement in Customs-Related Activities:
   1. The business must actively undertake customs-related work, such as import/export operations and customs clearance.
3. Participation in the International Supply Chain:
   1. The applicant must be a part of the international supply chain, directly involved in the cross-border movement of goods.
4. Legal Entity Requirement:
   1. AEO certification can only be awarded to an individual legal entity (such as a company, LLP, or partnership firm).
   2. It cannot be granted to a group of companies collectively.
5. Minimum Operational Experience:
   1. The business must have conducted regular commercial activities for a minimum of:
      • Three financial years for standard businesses.
      • Two financial years for MSMEs.

These eligibility criteria ensure that applicants have sufficient experience, compliance history, and operational stability before obtaining AEO T2 certification.

Benefits Associated

All Facilities of Tier 1 Plus Additional Benefits:

1. Higher Facilitation: Enhanced trade benefits with faster customs processing and priority handling.
2. Deferred Duty Payment: Ability to defer the payment of customs duties, improving cash flow.
3. MRA Benefits in Other Countries: Access to trade facilitation benefits in countries with Mutual Recognition Agreements (MRAs).
4. Waiver of Seal Verification: Exemption from routine seal verification, reducing inspection delays.
5. Priority in Scanning/Assessment: Faster clearance with priority during cargo scanning and document assessments.
6. 25% Bank Guarantee: Reduced bank guarantee requirement to 25% of the standard amount.
7. On-Site Inspection/Stickers: On-site inspection with special identification stickers for faster clearance.
8. Refund/Rebate in 45 Days: Expedited processing of refunds and duty rebates within 45 days.
9. Faster Drawback: Quicker disbursal of duty drawback benefits.
10. Client Relationship Manager (CRM): Dedicated CRM support for faster issue resolution and assistance.
11. On-Site Post Clearance Audit (OSPCA) Every 2 Years: Reduced audit frequency with OSPCA conducted once every 2 years.

Documentation

To qualify for AEO T2, the applicant must submit a detailed set of documents to the customs authority, which typically includes:

1. PAN CARD
2. PROCESS MAP
3. SITE PLAN OF THE LOCATIONS
4. IEC
5. CERTIFICATE OF REGISTRATION OF COMPANY
6. GST REGISTRATION
7. BALANCE SHEET FOR PREVIOUS THREE FYs
8. SOLVENCY CERTIFICATE BY AUDITOR FOR PREVIOUS THREE FYs
9. UNDERTAKING OF FINANCIAL SOLVENCY FOR PREVIOUS THREE FYs

Validity Period

The validity of the Authorized Economic Operator (AEO) certificate varies depending on the certification tier. AEO-T2 certificate is valid for three years from the date of issuance.

Renewal

The AEO-T2 status is to be renewed 60 days against application lapse of their validity.

How Ikargos.com Can Help in AEO Certification

The starting point for an AEO certification involves establishing robust documentation and Standard Operating Procedures (SOPs) focused on security, safety, and the systematic movement of goods in international trade. At iKargos.com, we specialize in guiding businesses through the entire AEO certification process by helping to document and formalize trade processes through well-defined SOPs, which form the foundation of a successful AEO program.

We adopt a comprehensive hand-holding approach to ensure smooth attainment of AEO status, from the initial readiness assessment to the final approval. Here's how we can assist your organization:

1. Assessment of Current Security Standards:
   We conduct a thorough review of your existing security measures and other critical areas necessary to qualify for AEO status.
2. Development of SOPs and Compliance Framework:
   Our experts assist in preparing detailed SOPs aligned with AEO requirements, establishing the necessary standards for security, risk management, and trade compliance.
3. Document Collection and Application Preparation:
   We provide hands-on assistance in gathering all required information and supporting documents for the AEO application, ensuring accuracy and completeness.
4. Application Filing and Clarifications:
   iKargos.com supports the entire process of application submission, including drafting, filing, and responding to clarifications or queries raised by AEO authorities.
5. Internal Compliance Audits:
   We conduct an independent internal review to assess compliance with AEO security standards, identifying gaps and suggesting corrective actions before external verification.
6. Physical Verification Readiness:
   Our team offers expert guidance to prepare your organization for physical verification by AEO authorities, including mock audits and gap analysis.
7. Support During Physical Verification:
   We assist during the physical verification process, ensuring all documentation and security protocols meet the required standards.
8. Follow-Up and Certification Procurement:
   iKargos.com handles continuous follow-ups with AEO authorities to ensure the certification process is completed smoothly and promptly.
9. Post-Certification Compliance Management:
   We continue to support your organization in maintaining AEO status by ensuring ongoing compliance with the certification's regulatory requirements.

With iKargos.com, your journey towards AEO certification is streamlined, efficient, and compliant, ensuring you receive the full benefits of global trade facilitation and enhanced supply chain security.

For Consultation on AEO filing and renewal process please contact.

Manju Laur (+91 9711994042), 9811803136

certification@ikargos.com, rekhaatri@ikargos.com

For more information on Benefits of certificate under AEO scheme:

WHAT IS AEO?, FAQ's

In a hurry to get the AEO certification? Fill up this form, or click here https://dwivediprashant.typeform.com/to/mfwK9rNw or call Manju Laur (+91 9711994042)