Authorized Economic Operator (AEO) Programme in India
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Question 1
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Consider the following statements with reference to the Authorized Economic Operator (AEO) Programme in India:
1. The AEO Programme was introduced in 2011 to facilitate ease of doing business.
2. The AEO Programme in India aligns with the commitments made under WTO Trade Facilitation Agreement (TFA).
Which of the statements given above is/ are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Explanation statement 1 is correct: AEO is a programme under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade. The programme aims to enhance international supply chain security and facilitate movement of legitimate goods.AEO encompasses various players in the International supply chain. In India, AEO programme was introduced as pilot project by the Customs department as part of a broader framework for ease of doing business, which has been instrumental in simplifying export operations across various sectors, resulting in significant time and cost savings for exporters.
Statement 2 is correct: India’s AEO Programme is in sync with the commitments made under Article 7.7 of WTO TFA. AEO is a voluntary compliance programme. It enables the Indian Customs to enhance and streamline cargo security through close cooperation with the principal stakeholders of the international supply chain viz. importers, exporters, logistics providers, custodians or terminal operators, custom brokers and warehouse operators.
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