The Kakinada port will be soon applying to the Central Board of Customs and Excise for Authorized Economic Operator (AEO) status which will give it the distinct advantage of being a World Customs Organisation (WCO)–approved maritime logistics provider.
The concept of AEO has been introduced by the Brussels-headquartered WCO to ensure compatibility of the customs administration of countries that are signatories to the protocol.
Ports that get the AEO status are considered ‘customs-certified reliable and secure trading partners’ in the global supply chain. The trade facilitation procedures followed by such ports are in compliance with the WCO’s Framework of Standards to Secure and Facilitate Global Trade, said Customs Commissioner (A.P) S.K. Rahman.
Speaking to The Hindu , Mr. Rahman said AEO status was conferred on the Krishnapatnam port in August 2015 and the Kakinada port, which has just started handling container traffic, was likely to get that recognition in the current year itself. The Customs Preventive Commissionerate at Vijayawada, which has jurisdiction all over the State except the major Custom House at Visakhapatnam, would be privileged to have both the operational ports under its operational control recognised as AEOs.
India adopted its own AEO programme in 2011. AEOs will have reduced examinations and inspections and can obtain acceptance of pre-arrival import declarations and acceptance of export declarations without bringing goods into customs areas. Besides, transacting business will be easier for warehouse operators, custom house agents and other service providers.
An AEO certificate would be in force for three years after which it has to be renewed. Another significant development involving Kakinada port is the launching of real-time container tracking in a few months. Krishnapatnam Port already has this checking facility that runs on Global Positioning System and Radio Frequency Identification tagging.
Tracking helps in better compliance with custom procedures and eliminates the scope for activities that are inimical to the country.
It also facilitates surveillance by other enforcement/security agencies.
