What Steps Has the Government Taken to Issue 5,892 Economic Operator Certificates to Expedite Exports & Imports?
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Synopsis
In a significant move to enhance India's trade efficiency, the government has issued 5,892 Authorised Economic Operator (AEO) certificates. This initiative aims to fast-track exports and imports, especially for MSMEs, by providing them with enhanced facilitation measures and support from foreign customs administrations.
Key Takeaways
- 5,892 AEO certificates issued as of June 30.
- Enhanced measures for exports and imports under AEO framework.
- Support extended for MSMEs to participate in AEO program.
- Facilitation measures include direct port delivery and automated clearance.
- Mutual Recognition Arrangements enhance competitiveness in exports.
New Delhi, July 29 (NationPress) The government has implemented various initiatives to expedite exports and imports under the Authorised Economic Operator (AEO) framework, which provides enhanced facilitation for both outgoing and incoming shipments, as disclosed in Parliament on Tuesday.
Among the key initiatives are facilitation measures specifically for AEO certificate holders.
Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha, in a written response to an inquiry, that as of June 30, a total of 5,892 AEO certificates have been issued. These certificates are for various facilities, including direct port delivery (DPD) for import containers and direct port entry (DPE) for export containers, along with automated clearance and on-site examinations for specific consignments.
The government has also expanded the deferred payment facility for Tier-III and Tier-II AEO certificate holders and has relaxed the norms for bank guarantee submissions when applicable.
In addition, Partner Government Agencies and other stakeholders have extended recognition to AEO certificate holders, who also benefit from trade facilitation support from foreign customs administrations through signed Mutual Recognition Arrangement pacts, thereby improving their global trade efficiency, said the minister.
Chaudhary added that the Centre has carried out over 60 outreach programs nationwide in the past three years, focusing on MSMEs to enhance awareness regarding the AEO scheme. A global conference titled "India AEO Dialogue: Enhancing Global Trade Partnerships" was held in November 2024, along with two additional conferences in April and May 2025, engaging various stakeholders to promote awareness of the AEO program. To boost MSME participation, the government has prioritized processing their applications and relaxed the accreditation process, including the annexures required for AEO certification applications.
Furthermore, the norms for bank guarantee submissions for AEO certificate-holder MSMEs have also been eased.
Chaudhary explained that mutual recognition arrangements (MRAs) are founded on the mutual acknowledgment of supply chain security standards, where AEO certificate holders from one nation are recognized as secure and low-risk by customs administrations of other nations. Consequently, exports from Indian AEO certificate holders experience quicker cargo release, fewer inspections, and expedited customs clearance in partner countries, thereby enhancing the competitiveness of Indian exports and facilitating trade in partner nations.
Point of View
It is imperative to acknowledge the government's proactive approach in facilitating trade through the AEO framework. Such measures not only enhance efficiency for businesses but also reaffirm India's commitment to fostering a competitive trade environment globally.
NationPress
31/07/2025
Frequently Asked Questions
What is an Authorised Economic Operator (AEO) certificate?
An Authorised Economic Operator (AEO) certificate is a designation granted by customs authorities that recognizes a company as a secure and compliant entity in the international supply chain, allowing for expedited customs processes.
How many AEO certificates have been issued in India?
As of June 30, a total of 5,892 AEO certificates have been issued in India.
What benefits do AEO certificate holders receive?
AEO certificate holders benefit from expedited customs clearance, fewer inspections, and trade facilitation support from foreign customs administrations.
What steps has the government taken to support MSMEs in the AEO program?
The government has prioritized processing applications from MSMEs, relaxed accreditation processes, and eased norms for bank guarantees to support their participation in the AEO program.
What is the significance of Mutual Recognition Arrangements (MRAs)?
MRAs are agreements between countries that recognize each other's AEO programs, allowing for smoother trade operations and enhanced security standards.
