DGFT Notification: Mandatory AEO T1 and T2 Certification for 2024

To streamline international trade and enhance supply chain security, DGFT and CBIC have intensified the drive for Authorized Economic Operator (AEO) certification. The AEO program is a business-to-government partnership that offers significant trade facilitation benefits, including faster customs clearance, deferred payment of duties, and lower bank guarantee requirements. For Indian exporters, achieving AEO T1 or T2 status is becoming a prerequisite for smooth logistics in key markets like the EU and USA. As per Circular No. 18/2023-Customs, the government has simplified the application process for Tier 1 (T1) status to encourage wider MSME participation. The transition to a digital-only application process through the AEO portal aims to reduce physical interface and expedite the time taken for approval. Exporters holding AEO status are also prioritized during port congestion and benefit from Mutual Recognition Agreements (MRAs) signed with other nations. ## What this means for exporters Moving to AEO status means your shipments will face fewer physical examinations at the port, saving both time and container detention charges. For T2 and T3 status holders, the benefit of 'Direct Port Entry' and 'Direct Port Delivery' can significantly cut lead times. Exporters are advised to perform an internal compliance audit of their documentation and facility security before applying on the official AEO portal.