Reference is invited to Board Circular No 28/2012-Customs dated 16.11.2012 which lays down detailed guidelines on processing, validation and certification under the Authorized Economic Operator (AEO) Programme.
2. Para 15.5 of the Board Circular No. 28/2012- Customs dated 16.11.2012 stipulates that the validity of certificate of AEO status holders shall be for three years.
3. References have been received in the Board requesting therein that in case of validity of certificates being valid for three years, the fresh application for AEO and causing fresh verification as per laid down standards conditions should not be insisted upon as periodical post certification review indicate their continued adherence to the laid down guidelines.
4. The matter has been examined. In this regard, it is seen that as per the Board’s guidelines, the post certification review is done on yearly basis for AEO status holders. Therefore, in order to reduce transaction cost and for ease of doing business, Board has decided that validity of AEO certificate shall be normally for a period of five year or for further period as extended by DGICCE, subject to yearly review of the same by AEO Programme Manager as this will obviate the necessity of filing fresh applications and causing fresh verifications after three years in respect of the AEO status holders.
5. Para 15.5 of Board Circular No. 28/2012-Customs dated 16.11.2012 stands modified to above extent.
6. Difficulty faced, if any, may be brought to the notice of the Board.