In the world of international trade, a smooth border movement of goods is required. Importers and exporters often face delays, compliance costs and documentation barriers. To reduce these challenges, simple documentation formats such as Authorized Economic Operator (AEO) certification, LO (Letter of Undertaking/Credit/Credit/Guarantee), and certified custom forms play a crucial role, to reduce these challenges.
This guide covers everything you need to know about the AEO certification, LO format, key customs forms in India and the most used forms in international trade.
What is an AEO Certificate?
An authorized economic operator (AEO) certificate is an internationally accredited position that is given to businesses involved in the international supply chain (importers, exporters, logistics providers, warehouse operators, customs brokers, etc.) who comply with customs laws.
Key Features:
- Improves customs clearance speed.
- Reduces compliance and logistics costs.
- Provides global recognition through Mutual Recognition Arrangements (MRAs).
- Available in different tiers: AEO-T1, AEO-T2, AEO-T3 (for importers/exporters) and AEO-LO (for Logistics Operators).
Types of AEO Certificates in India
| Certificate Type | Beneficiaries | Level of Benefits |
| AEO-T1 | Importers & Exporters | Basic facilitation |
| AEO-T2 | Importers & Exporters | Moderate benefits (bank guarantee waiver, faster clearance) |
| AEO-T3 | Importers & Exporters | Maximum benefits with global recognition |
| AEO-LO | Logistics Operators (custodians, warehouse operators, customs brokers, transporters, etc.) |
LO Format under AEO
The AEO-LO (Logistics Operator) Certificate applies to businesses other than importers/exporters who are critical to supply chain security.
Eligible LO categories include:
- Custodians / Terminal Operators
- Customs Brokers
- Warehouse Operators
- Transporters (freight forwarders, couriers, etc.)
Step-by-Step Process to Draft an LO for Customs
- Use your company’s official letterhead.
- Mention the applicant details – Name, IEC, GST, and address.
- Clearly state the purpose of the undertaking (e.g., export without IGST, AEO security compliance, etc.).
- Provide transaction/consignment details if applicable.
- Sign by Authorized Signatory with seal.
- Attach supporting documents (IEC, GST, PAN, Bank Guarantee, etc.).
Important Customs Forms in India
- Form AEO-T1 / T2 / T3 – For AEO Application.
- Form 42 – Application for Import of Cosmetics (if dealing in perfumes/beauty products).
- Form 43 – Import Registration Certificate issued by CDSCO.
- Bill of Entry (BOE) – Filed for clearance of imports.
- Shipping Bill (SB) – Filed for clearance of exports.
- ARE-1 – Application for removal of excisable goods for export.
- GATT Declaration Form – Required for import shipments.
- Annexure Forms – For specific customs procedures.
List of Key Full Forms in Customs & International Trade
- AEO – Authorized Economic Operator
- IEC – Import Export Code
- GST – Goods and Services Tax
- CBIC – Central Board of Indirect Taxes and Customs
- DGFT – Directorate General of Foreign Trade
- CDSCO – Central Drugs Standard Control Organization
- BOE – Bill of Entry
- SB – Shipping Bill
- CIF – Cost, Insurance & Freight
- FOB – Free on Board
- HS Code – Harmonised System Code
- LC – Letter of Credit
- LUT – Letter of Undertaking
- MRA – Mutual Recognition Agreement
Benefits of AEO Certificate & Standardised Customs Documentation
- Faster shipments with reduced delays.
- Lower compliance costs.
- Better credibility with customs and trade partners.
- Transparency in documentation.
- Higher competitiveness in global trade
How ELT Corporate Can Help?
ELT Corporate with CustomsRegulatory.com provides end-to-end support for businesses seeking AEO Certification and customs compliance.
We help with:
- AEO Certificate (T1, T2, T3, LO) application
- Drafting & filing LO formats
- Customs documentation (BOE, SB, etc.)
- Regulatory representation before CBIC & DGFT
- Compliance audits and renewals
Contact us today [+91 9899997002] to get started with your AEO journey.
FAQs
How long does it take to get an AEO Certificate?
Usually 3–6 months, depending on the category and documentation quality.
Is AEO mandatory in India?
Not mandatory, but highly beneficial for faster clearance and global recognition.
What is the validity of the AEO Certificate?
T1 – 3 years, T2 – 3 years, T3 – 5 years, LO – 3 years.
Do individuals need AEO?
No, it is only for businesses (importers, exporters, logistics providers).
Are AEO Certificates recognised internationally?
Yes, through WCO’s MRAs.
