A majority of apparel exporters from Tirupur, the hub for knitwear exports have not obtained the ‘authorised economic operator’ (AEO) status, which is in compliance with World Trade Organisation (WTO) norms. One of the biggest advantages of getting the AEO status is the self certification of cargo, without the need of customs examination.
"To remain competitive in global markets, it has become essential to get an AEO status, since export incentives schemes like Merchandise Exports From India Scheme (MEIS) may be withdrawn, considering that India's per capita income in India has crossed $1,000 for three consecutive years starting from 2013," a leading daily quoted Sudhakar Kasture, an international trade consultant as saying.
According to Kasture, export incentives cannot be given if the per capita income of any country crosses $1,000 for three successive years as per WTO guidelines.
An exporting company can file for AEO status if it has filed 25 shipping bills or 25 bills of entries in a year, while also recording profit for the last three years. (AR)
Source: fibre2fashion.com