Indian Economy News

Several initiatives taken by the Government to fast-track exports and imports

The Government of India has implemented a range of measures to expedite both exports and imports under the ambit of the Authorized Economic Operator (AEO) framework. Union Minister of State for Finance, Mr. Pankaj Chaudhary, recently confirmed these initiatives in a written reply to a query in the Rajya Sabha. Key facilitation measures for AEO certificate holders include enhanced consignment processing for imports and exports, the provision of Direct Port Delivery (DPD) for import containers, and Direct Port Entry (DPE) for export containers. Furthermore, AEO status enables automated clearance and on-site examination for specific consignment types, alongside a deferred payment facility for Tier-II and Tier-III certificate holders. Relaxed norms for bank guarantee submission, where applicable, and recognition by Partner Government Agencies (PGAs) and other stakeholders further streamline trade operations. These certificate holders also benefit from trade facilitation support from foreign customs administrations that have established Mutual Recognition Arrangements (MRAs) with India, thereby bolstering their global trade efficiency. As of June 30, 2025, a total of 5,892 AEO certificates had been issued.
To raise awareness and encourage participation in the AEO Scheme, particularly among Micro, Small, and Medium Enterprises (MSMEs), the Government of India has conducted over 60 outreach programmes nationwide over the past three years. Notably, a global conference titled "India AEO Dialogue: Enhancing Global Trade Partnerships" was hosted in November 2024, complemented by two additional conferences in April and May 2025 involving various stakeholders. In 2020, to boost MSME involvement, the accreditation process for AEO certification was relaxed, and the required annexures for their applications were rationalised, alongside prioritised processing. The norms for bank guarantee submission were also eased for AEO Certificate holder MSMEs. Mutual Recognition Arrangements are founded on the reciprocal acknowledgement of supply chain security standards, ensuring that AEO certificate holders from one nation are recognised as secure and low-risk by the customs authorities of another. Consequently, exports by Indian AEO Certificate holders benefit from faster cargo release, fewer inspections, and expedited customs clearance in partner countries, enhancing their competitiveness and facilitating trade.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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