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The Government auditor CAG has highlighted the "poor response" to the Authorised Economic Operator (AEO) programme developed by the Indian customs administration.
Nearly three years have passed since this AEO scheme took off in India, but only 14 entities have enrolled for this programme till date.
The complex procedure involved in granting the AEO status is hindering the trade from opting for the scheme, the CAG said in a performance audit report tabled in Parliament on Tuesday.
AEO programme is now the preferred model for customs collaboration around the world.
The main benefit of AEO is dramatic reduction in paperwork for companies and cutting down of red tape.
This would lead to faster customs clearance of consignments of/for AEO status holders.
The AEO programme - which was developed since August 2011 - took wings in India in July 2012 when the first set of AEO certificates were handed out to three entities - LG Electronics, Ennore Container Terminal and IBM.
In their reply to this CAG observation, the revenue department has not shared the perception of the government auditor on the AEO scheme getting a "poor response".
The AEO scheme is a voluntary scheme and with wide publicity and sensitisation, the number of AEO authorised entity is expected to increase, the revenue department said.
srivats.kr@thehindu.co.in
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