Section 1

General Provisions

1.4 Treatment of existing AEOs and ACPs

1.4.1 All the existing AEOs who have been granted the AEO certificate in terms of the erstwhile AEO circulars and who continue to possess such certificates validly shall be granted either AEOT2or AEO-LOCertificate depending upon their category by the AEO Programme Manager within 15 days of issue of this circular, and thereafter, they shall become entitled for benefits in terms of this circular in terms of paragraph 1.5 below. They shall remain AEO-T2or AEO-LOcertificate holders till the validity period mentioned in their AEO certificate issued under Circular 28/2012 – Cus dated 16-11-2012. Thereafter, they will have to follow renewal procedure as prescribed in this circular. In the meantime, it shall also be open for them to apply for AEO-T3 certificate, if eligible.

1.4.2 All the existing ACP clients who have been granted ACP status in terms of the erstwhile ACP circulars and who continue to possess such status validly shall be provisionally granted AEOT1 Certificate by the AEO Programme Manager within 15 days of issue of this circular, and thereafter, they shall become entitled for benefits in terms of this circular in terms of paragraph 1.5 below. They shall remain AEO-T1 certificate holders till the validity period mentioned in their ACP renewal /granting letter. Thereafter, they will have to follow renewal procedure as prescribed in this circular.

1.4.3 All such ACP clients shall have an opportunity to submit applications for grant of AEO Certificates in terms of this circular within 90 days of issue of this circular. The validity period and the entitlement to benefits for ACP clients who fail to submit application within 90 days shall be taken up for review.

1.4.4 However, ACP clients who submit the applications within 90 days of issue of this circular shall continue to avail the benefits of AEO-T1till a decision is taken by the AEO Programme Manager to issue them the AEO Certificates as applicable to them, and benefits in terms of this circular is extended to them. In case, they are not found to be eligible for the AEO Certificates, they would no longer be entitled to the benefits of AEO-T1.

1.4.5 All ACP clients are also entitled to submit their applications for getting status of AEO-T2 or AEO-T3, as may be applicable. However, the status of AEO-T2or AEO-T3 would be given after physical verification of requirements specified in paragraphs 3.2, 3.3, 3.4 and 3.5.

1.4.6 It is clarified that all the entities who were earlier denied either ACP or AEO status can apply for AEO-T1, AEO-T2, AEO-T3 or AEO-LO as may be applicable. Their applications would be processed in terms of the conditions specified in this circular. Further those applicants whose applications are once rejected under the current scheme are free to apply again, if grounds on which their application is rejected are no longer valid, and they are eligible for the AEO status.

1.4.7 The holders of AEO Certificates (hereinafter referred to as the AEOs) shall be entitled to benefits laid down in paragraph 1.5 below, as may be applicable to them. However, such benefits may be denied by the Customs Authorities to the AEO on account of specific information or intelligence indicating that the Certificate Holder is misusing the benefits granted to it, and all such instances shall be reported as soon as possible by the Customs Authorities to the AEO Programme Manager, who shall take necessary action, if required, for suspension, downgrading or revocation of the AEO status.

1.4.8 The benefits to the holder of AEO Certificate shall be subject to the AEO concerned providing the AEO Certificate Number to the Customs Authorities.