Central Board of Indirect Taxes and Customs organises global India Authorised Economic Operator (AEO) programme

New Delhi: 29 NOV 2024:The Central Board of Indirect Taxes and Customs (CBIC) organized a two-day global India Authorised Economic Operator (AEO) programme in association with World Bank on 28^th and 29^th Nov. 2024, in New Delhi.

The event saw the participation of Shri Sanjay Kumar Agarwal, Chairman, along with Members of the CBIC, besides the Valedictory address by Shri Sanjay Malhotra, Secretary, Department of Revenue, Ministry of Finance. The event witnessed participation from 18 trade partner countries, the private sector, and international organisations. In his valedictory address on day two of the conference, Shri Sanjay Malhotra explained the two-pillar approach of the Government on tax administration — trust and technology — and underscored the importance of expansion of the Mutual Recognition Agreement (MRA) programme to include more regional and bilateral partners. Shri Malhotra assured India’s support in developing a robust AEO programme in countries with fewer capabilities and emphasised that AEO helps in re-organising and re-engineering tax system that relies on trust-based strategies.

Shri Surjit Bhujbal, Member (Customs), CBIC, highlighted the progress made by India’s AEO programme and underscored the benefits accrued to the private sector. Shri Satya Prasad Sahu, World Bank summarised the key takeaways from the conference. The India Authorised Economic Operator (AEO) Dialogue was inaugurated by Shri Sanjay Kumar Agarwal, Chairman, CBIC, along with Members of CBIC, Shri Rajiv Talwar; Shri Alok Shukla Member; Shri Vivek Ranjan; and Shri Surjit Bhujbal; in presence of Mr. Hoon Sahib Soh, Head, South Asia Macroeconomics Trade & Investment, World Bank. Mr. P. K. Das, Director, World Customs Organisation, New Delhi also addressed the conference.

Representatives from Russia, Australia, Thailand, Vietnam, Qatar, Bangladesh, Brazil, New Zealand, Burundi, Kenya, Uganda, Sri Lanka, Bhutan, Maldives, Nepal, Zimbabwe, Egypt and Belarus attended the programme. The conference had participants from trade associations like US India Strategic Partnership Forum, Federation of Indian Export Organisations, Freight Forwarders Associations of India and several participant companies. The deliberations included panel discussions on the journey of India’s AEO Programme, benefits to MSMEs, MRAs, engagements with international participants and learning best practices, Risk Management, Gender dimentions of trade facilitation and Supply Chain Resilience.

In his keynote address on day one, Shri Agarwal emphasised the improvement made by India in the World Bank logistics performance index and centrality of AEO programme in that effort. AEOs programme embodies India’s ethos of Vasudhaiva Kutumbakam, which must be seen as a global effort to secure global trade. In his address at the conference, Mr Hoon Sahib Soh emphasied that AEO programme is a testament to India’s dedication to building resilient and trusted trade partnerships. He also called upon all the stakeholders to redefine the future of global trade partnerships and position India as a leader in the modern, interconnected trade ecosystem.

Earlier, in his inaugural welcome address, Shri Bhujbal welcomed the participants and said that the conference presented an opportunity to discuss policies and programmes as it is not only a platform for ideas but it is a platform for action.

ABOUT AEO PROGRAMME

AEO is a programme under the aegis of the World Customs Organisation (WCO) SAFE Framework of Standards to secure and facilitate Global Trade. AEO is a voluntary compliance programme which enables 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, customs brokers and warehouse operators. Indian AEO programme started in 2011 and was strengthened in 2016. It is implemented by the Directorate of International Customs of  CBIC. There has been exponential increase in the AEO certified clients.  As of 31.10.2024, there are 5,947 AEO entities in India in a three-tier programme with additional tier of logistical operators.

India has signed MRA on AEO with the Customs Administrations of South Korea, Hong Kong, Taiwan, USA, UAE, Australia, and Russia. By this agreement, AEO status of the MRA partner’s AEO programme is recognised by each other and trade facilitation is extended reciprocally.  India has also signed Joint Action Plans (JAP) to conclude an MRA with Uganda, East African Community, South Africa, Japan, Bahrain, Singapore, New Zealand, the UK, Belarus and BRICS. Joint action plan with Brazil was signed during the conference to enter into an MRA.