Govt to launch AEO status for businesses

The government has incorporated a new provision in Customs Act 1969 to award Authorised Economic Operator (AEO) status to honest and genuine exporters and importers to facilitate them with privilege in release of goods from customs stations.
The Finance Bill 2017 introduced the provision for the first time in a bid to simplify the customs procedures for both local and international compliant businesses.
Importers, exporters, manufacturers and other relevant agencies, like - freight forwarders, clearing and forwarding agents, shipping agents, terminal operators and warehouses, can avail the status of AEO.
Officials concerned said cost of doing business will reduce significantly, if Jatiyo Sangsad passes the proposed provision of AEO.
A senior customs official said National Board of Revenue (NBR) board will frame rules for awarding the status on the basis of the new provision in Customs Act.
He said the importers and exporters having satisfactory track record on import and export of goods will be allowed to enjoy privilege as AEO.
NBR will recommend or prescribe the entities to the customs commissioners for obtaining the status of AEO.
"An AEO shall enjoy simplified customs formalities in accordance with the terms and conditions as prescribed by board," said new Section 83E of Customs Act that has been placed in the Finance Bill 2017 on Thursday.
The government may enter into international agreements to award the AEO benefits provided under the section.
Persons who have demonstrated appropriate level of compliance with Customs Act and relevant rules and regulations, and fulfil other criteria related to compliance will be awarded AEO status.
Traders will be able to save both time and cost at the time of internal trading through the customs ports, as their goods can be released through green channel.
Customs authority will not inspect the goods thoroughly, and conduct only paper-based supervision in a bid to expedite clearance of their goods.
An AEO will also be recognised as compliant trader globally.
However, NBR will tag a set of conditions for the traders, who are interested to avail the AEO status.
Officials said NBR will determine the selection criteria for AEO, terms and conditions for the status, list of benefits and other issues related to awarding AEO, adopted by more than 70 countries until now.
Foreign companies may also get AEO status, if NBR is satisfied with their compliance with conditions and legislations, and if Bangladeshi persons are allowed the benefits in those countries on a reciprocal basis.
The government will have to sign international agreements to award AEO benefits to foreign companies.
Introduction of the AEO system is a part of NBR's customs modernisation programme.
With its incorporation in Finance Bill 2017, NBR's Customs Wing has got a legal support for awarding AEO although introduction of the facility is under process.
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