CBIC Circular 2026: New AEO T1 Status for Sustainable Footwear Units

## Key points In a significant move to bolster green exports, the Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 18/2026-Customs on August 12, 2026. This notification extends the 'Fast-Track Authorized Economic Operator (AEO) T1' certification to manufacturing units producing sustainable and recycled footwear. Under this new circular, the mandatory compliance window for these units has been reduced from two years to six months of active operations, provided they hold valid environmental certifications recognized by the Ministry of Commerce. ## What this means for exporters Authorized Economic Operator (AEO) T1 status provides immediate benefits including high-priority clearance at Nhavasheva and other major ports, reduced bank guarantee requirements, and a dedicated client relationship manager at Customs. For SME exporters in the footwear sector, this means faster turnaround times and significantly lower transaction costs. The AEO India program is designed to reward compliant entities with a 'Green Channel' for both imports of raw materials and exports of finished goods. Who should act now: Footwear manufacturers using recycled rubber, ocean plastic, or vegan leather should initiate their AEO T1 application immediately to take advantage of the relaxed eligibility criteria. Navigating the AEO certification process requires precise documentation and security audits. 'We Design For You' can assist you in preparing your self-assessment form (Annexure F) and ensuring your unit meets CBIC standards for rapid approval.