Hello there, what is AEO and how is it operationally different from having a custom bonded warehouse and AEO certification?« Back to Questions List

Hello, thanks for reaching out to us. The full form AEO is Authorised Economic Operator. It is a type of standardization certification launched by WCO, i.e. World Customs Organization, to improve the supply chain involving global trade by making them safer and lawful. In India, it was launched in 2011 by under the guidance of CBEC, i.e. Central Board of Excise & Customs. It provides certification to two types of parties – one for the importers/exporters and the other segment includes freight forwarders, warehouse operators, 3PL, etc.

The AEO is just a certificate to facilitate easy trade globally between two parties, providing the ease in customs activities as the parties are already certified for the lawfully compliant activities. While coming onto customs bonded warehouse, often referred to as bonds those warehouses which allow a place to carry customs based activities and getting the shipments cleared by the customs officer. Having a bond, in no way simplifies the global trade, nor it has any effect on the pace of getting goods cleared. Although having AEO certification and a bond are different things but both are related to import export, having their own features and effects.