The Government of India has significantly intensified its efforts to enhance the ease of doing business in the international trade sector by rolling out a series of measures aimed at expediting exports and imports. These initiatives fall under the Authorized Economic Operator (AEO) framework—a flagship trade facilitation programme developed by the World Customs Organization (WCO) and adopted by Indian Customs to improve trade security and efficiency. The schemes not only ensure a safer international supply chain but also aim to speed up cargo clearance through systemic privileges.

In a written reply to the Rajya Sabha on July 30, 2025, Union Minister of State for Finance, Mr. Pankaj Chaudhary, presented a comprehensive overview of the government’s ongoing facilitative measures under this programme. These measures are primarily aimed at giving a competitive edge to Indian exporters and importers by reducing procedural delays and enhancing global trust through the recognition of AEO certification.

Key Trade Facilitation Measures for AEO Certificate Holders

One of the cornerstones of these trade facilitation initiatives is the streamlined processing of import and export consignments. Several benefits now available to AEO status holders include:

• Direct Port Delivery (DPD) for import containers, allowing faster cargo clearance without movement to Container Freight Stations (CFS).

• Direct Port Entry (DPE) for export containers, helping exporters save time and logistic costs.

• Automated clearance mechanisms, removing the need for physical interventions in many cases, particularly for Tier-II and Tier-III certificate holders.

• On-site examination of select import/export shipments for trusted AEOs, enhancing speed and predictability in trade flows.

• Deferred payment of customs duties, allowing companies to manage working capital more effectively.

• Relaxation in bank guarantee norms, easing financial requirements especially for MSMEs.

• Recognition by Partner Government Agencies (PGAs) and other trade stakeholders, leading to smoother inter-departmental compliance.

These measures allow AEO entities to enjoy a reduced time frame for cargo clearance, improved supply chain reliability, and an overall improved trade facilitation environment.

Wider Recognition through Mutual Recognition Arrangements (MRAs)

To further broaden the utility of AEO certification, India has entered into Mutual Recognition Arrangements (MRAs) with multiple trading partner countries. MRAs are reciprocal arrangements where countries acknowledge the AEO status granted by each other's customs administrations.

As a result, Indian exporters with AEO certification enjoy:

• Faster cargo clearance at foreign ports.

• Reduced inspection and documentation.

• Smoother customs processing abroad.

These MRAs play a vital role in integrating Indian traders into global supply chains with greater trust and speed.

MSME Inclusion in AEO Framework

Recognising the crucial role of Micro, Small, and Medium Enterprises (MSMEs) in India’s economic structure, the Government has undertaken special efforts to boost their participation in the AEO framework.

As of June 30, 2025, 5,892 AEO certificates had been issued, including a growing number allocated to MSMEs. Their inclusion is being facilitated through:

• Relaxed accreditation processes, such as simplified documentation and rationalised annexure submissions.

• Prioritised processing of MSME applications, reducing approval timeframes.

• Relaxed norms for bank guarantees, which often act as a barrier for smaller enterprises.

• Targeted awareness campaigns, including over 60 outreach programmes conducted over the past three years across India.

Global Conferences and Stakeholder Engagement

The government has also institutionalised dialogue platforms to bring together stakeholders from customs, trade, industry, and global partners to share best practices and align strategies.

One such example is the “India AEO Dialogue: Enhancing Global Trade Partnerships” held in November 2024. This flagship conference was followed by two additional stakeholder meets in April and May 2025, which brought together industry bodies, global customs experts, and exporters to strengthen the AEO ecosystem.

These forums play a vital role in:

• Raising awareness about AEO benefits.

• Sharing implementation feedback.

• Facilitating cross-border cooperation for further MRA agreements.

Driving a Cultural Shift in Indian Trade

The rapid adoption of the AEO programme is also part of a larger strategy to align Indian customs procedures with global best practices, thus promoting the country as a trusted global trading partner.

The benefits now enjoyed by AEO certificate holders—faster cargo release, fewer inspections, streamlined documentation—have already started revolutionising the experience of Indian exporters and importers, particularly as digitisation, transparency, and compliance are now deeply integrated into the system.

By focusing on secure trade, enhanced efficiency, and global interoperability, the Government of India aims to support the country's ambitious export targets and make India a preferred destination for international trade.

Conclusion

The AEO scheme is rapidly becoming a cornerstone of India’s international trade strategy. Through policy innovation, technology integration, and widespread stakeholder engagement, the government is ensuring that Indian businesses—especially MSMEs—can trade faster, safer, and more efficiently.

The issuance of nearly 6,000 AEO certificates and their benefits through MRAs, outreach, and automation indicate that India’s trade ecosystem is undergoing a profound transformation, one that is rooted in trust-based facilitation rather than heavy-handed inspections.

As global trade continues to evolve, India’s AEO framework is poised to play a central role in propelling the nation into the top ranks of the world’s trading economies.

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