What is AEO T3?

The Authorized Economic Operator (AEO) Tier 3 is the highest level of certification under the AEO program initiated by the World Customs Organization (WCO) and implemented by various national customs authorities, including the Indian Customs under the Central Board of Indirect Taxes and Customs (CBIC). It is designed to offer maximum trade facilitation benefits to businesses with exceptional compliance records and robust supply chain security practices.

AEO-T3 certification is awarded to entities that have demonstrated outstanding adherence to customs laws, security protocols, and financial stability, ensuring minimal risk in international trade operations. This tier builds upon the benefits provided in AEO-T1 and AEO-T2 but offers even greater privileges, including reduced customs intervention, faster clearances, and enhanced ease of doing business.

Entities achieving AEO-T3 certification enjoy significant advantages such as higher facilitation, self-certified document acceptance, no bank guarantee requirements, faster refunds and rebates, and risk-based intervention from other government departments. The certification also reflects a company’s commitment to supply chain security and regulatory compliance, making it a valuable credential in global trade.

AEO-T3 is ideal for large, compliant businesses seeking minimal disruptions in their import-export operations and is a testament to a company’s excellence in international trade standards.

Who Should Apply for AEO T3?

The AEO-T3 (Authorized Economic Operator - Tier 3) certification is designed for businesses involved in international trade that demonstrate the highest levels of compliance, security, and operational efficiency. It is best suited for:

1. Large Enterprises and Multinational Corporations
   1. Companies with a significant volume of imports and exports.
   2. Multinational corporations operating in multiple countries with extensive supply chain networks.
   3. Organizations seeking global recognition and trade facilitation benefits across multiple jurisdictions.
2. Highly Compliant and Trusted Entities
   1. Businesses with a proven track record of full compliance with customs laws and trade regulations.
   2. Entities with no significant history of non-compliance, penalties, or customs violations.
3. Companies with Strong Security and Risk Management Practices
   1. Entities that have established robust supply chain security protocols.
   2. Businesses that implement risk management strategies for cargo safety, including personnel vetting, physical security, and data protection.
4. Exporters and Importers Seeking Maximum Trade Facilitation
   1. Exporters and importers seeking faster clearance, reduced inspections, and priority processing.
   2. Companies looking for benefits such as no bank guarantee, faster refunds, and self-certified documentation acceptance.
5. Existing AEO-T2 Certified Companies
   1. AEO-T3 is often a progression from AEO-T2 certification.
   2. Businesses already holding Tier 2 certification and maintaining continued compliance may apply for an upgrade to Tier 3.
6. Organizations with Consistent Financial Stability
   1. Financially sound businesses capable of meeting long-term compliance and security commitments.
   2. Companies with well-documented financial records and a history of financial integrity.
7. Customs Brokers, Freight Forwarders, and Logistics Service Providers
   1. Service providers handling large-scale shipments and customs processes for their clients.
   2. Companies aiming to offer value-added services with enhanced trade facilitation benefits for their customers.

Ideal Candidates for AEO-T3 Include:

1. Large manufacturing and export houses
2. Multinational import/export corporations
3. Trusted supply chain service providers
4. Logistics companies with global operations

AEO-T3 is most beneficial for companies committed to operational excellence, regulatory compliance, and secure international trade practices, making it ideal for businesses seeking the highest level of customs facilitation and global trade advantages.

Eligibility Criteria

To qualify for AEO-T3 (Authorized Economic Operator - Tier 3) certification, a business must meet one of the following criteria:

1. AEO-T2 Certification for Two Consecutive Years:
   1. The applicant must have held an AEO-T2 certification continuously for a minimum of two years.
   2. This demonstrates a sustained record of compliance, security, and operational excellence.
2. AEO-T2 Certificate Holder with Certified Business Partners:
   1. The applicant must already hold an AEO-T2 certification.
   2. Additionally, the applicant’s business partners (e.g., suppliers, logistics service providers, customs brokers) must also hold either:
      1. AEO-T2 certificate, or
      2. AEO-LO (Authorized Economic Operator – Logistic Operator) certificate, or
      3. Any other equivalent AEO certificate issued by a foreign customs authority.

This criterion ensures that not only the applying company but also its entire supply chain adheres to the highest standards of customs compliance and security, thereby minimizing risk and ensuring streamlined trade operations.

Benefits Associated

All Facilities of Tier 2 Plus Additional Benefits:

1. Higher Facilitation:
   1. Enhanced customs facilitation with minimal checks and faster clearance.
   2. Cargo can move with minimal intervention, reducing delays and storage costs.
2. Scanning Only on Intelligence:
   1. Physical or document scanning will be conducted only if there is specific intelligence indicating a risk.
   2. Reduces random checks and inspections for trusted Tier 3 entities.
3. Reliance on Self-Certified Copies:
   1. Self-certified copies of trade documents (like invoices, shipping bills, certificates of origin) are accepted without the need for physical verification.
   2. Reduces paperwork and expedites the clearance process.
4. No Bank Guarantee:
   1. Eliminates the requirement for providing a bank guarantee (BG) for customs-related compliance.
   2. Significantly reduces the financial burden on businesses and improves cash flow.
5. Risk-Based Intervention by Other Departments:
   1. Other regulatory authorities (e.g., Food Safety, Plant Quarantine, Drug Controller) will intervene only based on a risk assessment rather than routine checks.
   2. Reduces multi-agency inspections and speeds up cargo movement.
6. Refund/Rebate in 30 Days:
   1. Faster processing of refunds and rebates within 30 days of filing claims.
   2. Provides better liquidity and working capital management for businesses.
7. On-Site Post Clearance Audit (OSPCA) in 3 Years:
   1. On-Site Post Clearance Audit (OSPCA) is reduced to once every three years instead of yearly.
   2. Decreases compliance overhead while maintaining regulatory trust.

Documentation

To qualify for AEO T3, 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-T3 certificate is valid for three years from the date of issuance.

Renewal

The AEO-T3 status is to be renewed 60 days against application lapse of their validity.

How Ikargos.com Can Help in AEO Certification

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 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)