WTO hails India’s AEO scheme for bringing more small businesses into global trade
- IBEF
- October 22, 2025
The World Trade Organization (WTO) has praised India's liberalised Authorised Economic Operator (AEO) programme for significantly increasing the participation of micro, small, and medium enterprises (MSMEs) in international trade. The WTO Secretariat's latest compendium on MSME-related trade facilitation measures highlighted the scheme as a model initiative that makes trusted trader programmes more inclusive and accessible to smaller businesses. Launched by the Central Board of Indirect Taxes and Customs as a pilot in 2011 and revised in 2016, the AEO programme merges India's earlier accredited client programme and the AEO scheme under the World Customs Organization's SAFE Framework of Standards. This provides a global model for secure, efficient customs operations. The programme allows businesses that meet specific compliance and security standards to be recognised as 'trusted traders' and thus entitled to faster clearances, deferred duty payments, and reduced inspection frequency.
The Confederation of All India Traders (CAIT) introduced the liberalised MSME package in January 2021 to make certification easier for small exporters and importers. The reforms lowered key thresholds: MSMEs can now qualify with just 10 customs documents a year instead of 25, and with two years of operational history instead of three. The financial solvency and compliance record requirements were similarly shortened to two years. The number of annexures required for the application was drastically reduced, and processing time was cut from one month to 15 working days for tier-I certification, and from six months to three months for tier-II. The scheme also relaxed bank guarantee norms. MSME tier-I certificate holders now furnish only 25% of the standard requirement. In comparison, tier-II firms provide 10%, compared with up to 50% for non-certified traders. AEO-certified MSMEs also benefit from direct port entry and delivery, fast-tracked refunds, priority adjudication, and access to dedicated client relationship managers at ports-measures that together reduce logistics costs and turnaround times.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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