Streamlined processes, global recognitions, and MSME-friendly reforms under AEO framework aim to accelerate trade and reduce logistics barriers
NEW DELHI I Economy India: In a major trade facilitation push, the Indian government has intensified efforts to streamline import and export operations through its Authorised Economic Operator (AEO) programme. As of June 30, 2025, a total of 5,892 AEO certificates have been issued across the country, according to a written reply by Union Minister of State for Finance Shri Pankaj Chaudhary in the Rajya Sabha.
The AEO framework, which aligns with the World Customs Organization (WCO) SAFE Framework of Standards, enables faster cargo clearance and enhanced global trade competitiveness for certified businesses.
Key Trade Facilitation Initiatives Under AEO Scheme
Certified AEO entities enjoy a wide range of operational and logistical benefits, including:
- High-level facilitation in import and export consignments
- Direct Port Delivery (DPD) for import containers and Direct Port Entry (DPE) for exports
- Automated clearance and on-site inspections for select consignments
- Deferred payment facility for Tier-II and Tier-III AEO holders
- Relaxation in bank guarantee norms, wherever applicable
- Recognition from partner government agencies and other stakeholders
- International trade facilitation through Mutual Recognition Arrangements (MRAs) signed with foreign customs authorities
International Collaboration Through MRAs
The Minister noted that Mutual Recognition Arrangements (MRAs) ensure that AEO certificate holders from India are treated as secure and low-risk by customs authorities of partner countries. This translates into:
- Faster cargo release
- Reduced inspections
- Speedier customs clearances abroad
These benefits enhance the global competitiveness of Indian exporters and simplify supply chains.
Focus on MSMEs and Awareness Campaigns
To encourage participation from the Micro, Small, and Medium Enterprises (MSME) sector, the government has:
- Organised over 60 outreach programmes in the past three years to promote the AEO scheme
- Held a global conference in November 2024 titled “Bharat AEO Samvad: Strengthening Global Trade Partnerships”
- Conducted two stakeholder conferences in April and May 2025
The recognition process has been simplified for MSMEs with:
- Prioritised processing of applications
- Reduced documentation requirements
- Relaxed bank guarantee norms for certified MSMEs
AEO and Global Supply Chain Security
The AEO-MRA framework operates on mutual acceptance of supply chain security standards. Indian exporters certified under AEO benefit not only from domestic ease-of-doing-business reforms, but also from international trust and expedited procedures.
This positions India’s AEO-certified businesses as reliable players in global supply chains, crucial at a time when geopolitical uncertainties and logistical disruptions demand strong trade resilience.
With nearly 6,000 businesses onboarded under the AEO programme, the Indian government’s reforms reflect a targeted strategy to enhance export competitiveness, cut down red tape, and support MSMEs. These steps are expected to significantly reduce turnaround time at ports, promote ease of trading across borders, and increase India’s attractiveness as a global trade partner.
(Economy India)
