CBIC introduces Liberalised Economic Operator Package for MSMEs - (07 Jan 2021)

Customs

Central Board of Indirect Taxes & Customs (CBIC) has introduced Liberalised MSME AEO Package for Micro Small and Medium Enterprises (MSMEs). In order to attract MSMEs to become Authorised Economic Operators (AEOs) and avail the various benefits, the CBIC has relaxed the compliance criteria. MSMEs who have filed minimum 10 Customs clearance documents in one year and have a clean compliance record over 2 years are eligible to apply for the scheme. The documentary requirements have also been simplified. Further, the CBIC commits to take a decision on an application for grant of AEO status within only 15 days from electronic submission of complete documents for AEO Tier T1.

CBIC’s flagship “Liberalised MSME AEO Package” scheme is a voluntary compliance programme which enables swifter Customs clearance for accredited stakeholders in the global supply chain viz. importers, exporters, logistic service providers, custodians etc. The approved AEOs derive various benefits such as, the facility of Direct Port Delivery (DPD) of imported containers, Direct Port Entry (DPE) of their Export Containers, high level of facilitation in customs clearance of their consignments. Accordingly, it would ensure shorter cargo release time, exemption from Bank guarantees, priority for refund/ rebate/ duty Drawback, as well as a Client Relationship Manager at the customs port as a single point of interaction.

Further, the payment of Customs duty by specified AEOs is deferred and need not to be paid before the clearance of the imported goods by Customs. An added advantage for Tier 2 AEOs is that, their exports to certain countries are accorded facilitation by the foreign Customs administration with whom India enters into a Mutual Recognition Agreement. Through “Liberalised MSME AEO Package”, CBIC encourages all eligible MSMEs to avail advantages of faster Customs clearances and other related benefits.

Tags : MSMES AEOS PACKAGE