Chennai: The gems and jewellery sector has received the Authorized Economic Operator (AEO) status, which helps simplify export operations and saves time and cost.
The AEO programe was introduced as a pilot project in 2011. The AEO programme, a crucial part of the broader ease of doing business initiative, has been instrumental in simplifying export operations across various sectors, resulting in significant time and cost savings for exporters. This will improve the efficiency and export competitiveness of the sectors.
Despite the benefits it offers, the gem and jewellery sector was initially denied participation in the AEO program. According to the Gem and Jewellery Export Promotion Council, the government has accorded the status to the sector after its extensive efforts for the same. The sector is now eligible to apply for participation in the AEO programme, thereby enabling them to avail associated benefits.
The benefits of AEO status include world-wide recognition as safe, secure and compliant business partners in international trade and trade facilitation by a foreign Customs administration with whom India enters into a Mutual Recognition Agreement or Arrangement. The status provides Direct Port Delivery (DPD) of their import containers and Direct Port Entry (DPE) of their export containers. There could be a waiver of full or part of the bank guarantee requirements, waiver of merchant overtime fees, deferred payment of duties and waiver from transactional Post Clearance Audit and instead onsite PCA has been provided. It also offers a waiver of solvency certification for customs brokers.
Around 20 companies who are eager to enhance international trade operations, strengthen supply chain security, and improve global competitiveness, have already applied for AEO status. Based on these applications, as of now Asian Star, a premier diamond jewellery manufacturer has been granted AEO status, making it the first in the Indian gem and jewellery industry to receive the certificate.
The AEO status will support the industry at a time when its exports declined 14 per cent to $32.28 billion in FY24 against $37.74 billion in FY23.
