What is the AEO programme and is it right for your business?
Authorized Economic Operator
At Global Trade, we can manage your entire AEO application from start to finish. Alternatively, we can provide guidance to your business as you manage the application yourself. And we can review your completed application before submitting.
We also provide a bespoke AEO training program which can be delivered in one day to your team managing the application and authorisation process. This can be delivered in-house or online and will prepare your own internal resources to complete the application and authorisation process themselves.
By the end of this course, participants will be able to:
- fully understand the concept of Authorised Economic Operator (AEO) status
- describe the different AEO authorisations and their benefits
- the application process for the AEO status and applicable criteria
- understand the business benefit from AEO status
- how AEO status is maintained
- the concept and the benefits of mutual recognition of AEOs with other countries
What is the AEO programme all about?
The World Customs Organisation (WCO) introduced the Authorised Economic Operator (AEO) concept in the context of the SAFE (Standards to Secure and Facilitate Global Trade) Framework of Standards.An AEO authorisations facilitates a streamlined, efficient and secure global supply chain.
An AEO can be defined as a trader who is deemed reliable or trusted in the context of their customs operations. Therefore, they are entitled to operation and financial benefits in the customs territory they are based in.
There are two types of AEO status you can apply for:
AEOC: Authorised Economic Operator – Customs Simplifications: This status provides easier admittance to customs simplifications provided specifically under the customs legislation or AEOS: Authorised Economic Operator – Security and Safety: This status entitles the holder to benefit from particular facilitations related to customs controls relating to security and safety when the goods enter or leave the customs territory of the Union.
Both types of authorisations can be held as the same time (AEOF) and it a popular type of application for companies to make.
Customs authorities require certain criteria to be met in order to grant an AEO authorisation
5 key areas are examined:
- Appropriate record keeping
- Compliance with customs legislation and taxation
- Financial solvency
- Proven practical standards of competence or professional qualifications
- Appropriate security and safety measures (AEOS)
Is AEO right for your business?
There are various direct and indirect benefits when you are a holder of AEO status. And in a world where supply chain certainly and security is as important as ever, you should also consider the strategic nature of the AEO programme around the world.
Some of the many benefits are:
- Fewer safety and security controls at customs
- priority treatment if selected for control
- admission into various customs procedures and simplifications only available to AEO holder
- guarantee reductions or waivers in the amount of financial guarantee to hold with customs authorities
- ability to avail of mutual recognition agreements with major trading partners
Application and Authorisation Process
The application process for becoming AEO can be complex and time consuming, but by following the correct process flow and guidelines, the application can be manged internally and by using existing company resources if so desired. Or we can manage the entire process on your behalf.
We aim to simplify the application and authorisation process while educating those involved in the various customs compliance and operational processes needed to maintain AEO status and to take more control of their global customs supply chain. There are various direct and indirect benefits when you are a holder of AEO status. And in a world where supply chain certainly and security is as important as ever, you should also consider the strategic nature of the AEO programme around the world.
Steps examined and practiced are:
Preparation and self-assessment questionnaire
Submitting the application
Decision taking and audit process (internally and from examining customs authority)
Maintaining your AEO status
Your AEO application process will touch on most aspects of your operations, thus open up other opportunities for improvement and better compliance.
What is the next step
A problem shared is a problem solved