MSME participation in AEO programme grows but more awareness needed

A recent joint study by World Customs Organization (WCO), International Chamber of Commerce (ICC), and World Trade Organization (WTO) on integrating micro, small and medium enterprises (MSME) into Authorized Economic Operators (AEO) programme praises the Indian Customs for its initiatives but says that it increasingly needs to evolve from a large-enterprise focussed model into a truly inclusive framework — one that enables MSMEs to graduate from peripheral operators to trust-certified participants.

- TNC RAJAGOPALAN

The AEO programme developed by the WCO in 2005 under its SAFE (Security and Facilitation in a Global Environment) Framework urges all Customs administrations to certify businesses who meet compliance, security and operational reliability criteria as trusted partners and give them higher facilitations such as reduced levels of examination of cargo, priority clearances, reduced documentation, recognition with the Customs administrations in other countries through mutual recognition agreements (MRA), lower bank guarantees, assurance of supply chain security during cargo movement and faster access to refunds and drawback. The idea is to shift from universal checks to risk-based supervision, freeing resources for higher-risk consignments, while rewarding compliance, legitimacy and enabling trade efficiency.