In the fast-paced world of international trade in the current era, businesses seek faster, smoother movement of goods across borders. Governments need to facilitate this process while maintaining safety, compliance, and legality. The Authorised Economic Operator (AEO) Certification does just that by recognizing businesses operating safe, compliant, and streamlined supply chain practices.
In India, the AEO scheme is regulated by the CBIC (Central Board of Indirect Taxes and Customs) and has a purpose to deliver fast customs clearance, less inspection, and global acceptance for approved companies.
What is AEO Certification?
AEO (Authorised Economic Operator) is an international accreditation that shows your business:
- Complies with customs and tax laws
- Maintains a secure supply chain
- Has a strong track record of reliability and efficiency
With an AEO certificate, your company enjoys:
- Quicker customs clearance
- Reduced inspections and documentation requirements
- Priority treatment at ports
- Greater credibility with trade partners
Types of AEO Certification in India
The AEO program in India has three levels of certification:
AEO T1 – Entry Level
Who can apply?
- Importers and exporters beginning their compliance journey
- Businesses with no major customs offences in the past 3 years
Requirements:
- Import-Export Code (IEC), GST certificate, and financial records
- Clean compliance history with no fraud or penalties
Benefits:
- Faster customs clearance
- Fewer documents required
- Lower security deposit/guarantee
AEO T2 – Intermediate Level
Who can apply?
- Businesses with strong internal systems and security processes
- Can apply directly without holding T1
Requirements:
- Robust security procedures at warehouses/offices
- Internal audits and compliance systems
- Audited accounts and clean customs record for at least 3 years
Benefits:
- Faster clearances than T1
- Much lower chance of inspections
- Better coordination with customs authorities
- Enhanced business reputation
AEO T3 – Highest Level
Who can apply?
- Only companies already holding AEO T2 (for at least 2 years)
- Large businesses with excellent compliance history
Requirements:
- Advanced electronic & physical security systems
- Regular internal audits and compliance reviews
- No major violations in the last 5 years
- Strong financial health
Benefits:
- Maximum customs facilitation with almost no delays
- Special privileges like deferred duty payments
- Dedicated customs officer for support
- International recognition under mutual agreements with other countries
Comparison Table: AEO T1 vs T2 vs T3
| Feature / Level | AEO T1 (Entry) | AEO T2 (Intermediate) | AEO T3 (Highest) |
| Eligibility | Import/export firms, basic compliance | Strong systems & security, direct application possible | Must hold T2 for 2+ years |
| Customs Record | Clean for last 3 years | Clean for last 3 years | Clean for last 5 years |
| Requirements | Basic docs (IEC, GST, finance) | Audited accounts, security checks | Advanced systems, audits, strong financials |
| Benefits | Faster clearance, fewer docs | Quicker clearance, fewer inspections, better reputation | Priority treatment, duty deferment, global recognition |
| Validity | 3 years | 3 years | 5 years |
Which AEO Certificate Should You Choose?
- Start-ups & new exporters/importers → Begin with AEO T1
- Growing, established businesses → Apply for AEO T2 for greater facilitation
- Large enterprises with global operations → Target AEO T3 for maximum benefits and international recognition
FAQs on AEO Certification
- What is the main benefit of AEO certification?
Faster customs clearance, reduced inspections, and enhanced global credibility. - Is AEO mandatory for import-export companies?
No. It is voluntary but highly recommended to gain a competitive edge. - Can I apply directly for AEO T2 or T3?
- T2: Yes, you can apply directly.
- T3: Only after holding AEO T2 for at least 2 years with consistent compliance.
- How long does the process take?
On average, 3–6 months depending on document submission and CBIC review. - What is the validity of the certificates?
- AEO T1 → 3 years
- AEO T2 & T3 → 5 years (renewable upon compliance review)
Conclusion
AEO certification is not merely a tick-in-the-box compliance label; it enhances trust, credibility, and expedited trade facilitation. You may begin with T1, move to T2, or aspire to T3; AEO certification makes your supply chain robust and your business a trusted global trade partner.
Should you be seeking AEO certification in India, our professionals at Elt Corporate can assist you with eligibility screening, documentation, and submission of your applications.
