Central Board of Indirect Taxes & Customs (CBIC) has facilitated AEO criteria for MSMEs as well as introduced its flagship “Liberalised MSME AEO Package” for Micro Small and Medium Enterprises (MSMEs).
Keeping in view the present scenario of COVID-19 pandemic, the CBIC has relaxed the compliance criteria provided for MSMEs to become Authorised Economic Operators (AEOs) and avail the various benefits.
As per the relaxed requirements, MSMEs who have filed minimum 10 Customs clearance documents in one year and who have a clean compliance record over 2 years can apply for the scheme. The documentary requirements have also been simplified.
Further, 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. Additional benefits, like further reduction in Bank Guarantee requirements, have been introduced for MSMEs, and will be expanded subsequently.
While, 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.
This will encourage all eligible MSMEs to avail advantages of faster Customs clearances and other related benefits.