AEO Certification: What is it's benefits, and How to Obtain It

AEO certifications are a key tool for customs services. What is it, how to obtain it, and its benefits?

Security and efficiency play an important role in the context of globalization. In this context, companies are always looking for ways to optimize their logistic processes and ensure maximum security. In this context, AEO certification (Authorized Economic Operator), offers a wide range of benefits and opportunities for international companies. This comprehensive article on AEO by ASC Group is a guide to the subject.

What is AEO?

The status Authorized Economy Operator (AEO), certifies the specific situation of reliability a certain entity has towards Customs. It is part of new computerized procedures between private entities, and the authorities that are responsible for controlling activities in international trade. WCO (World Customs Organization), defines an "Authorized Economics Operator" as any party that is involved in international trade in whatever capacity and has been approved or authorized by a national customs authority.

Why was AEO Established?

Customs administrations have been forced to concentrate on the security of international trade rather than just collecting duties due to an increase in global trade.

In order to facilitate and secure global trade, the Framework of Standards to Securing and Facilitate Global Trade was developed by the World Customs Organization. This is also known as Safe. The four principles are:

• Harmonization of electronic cargo advance information
• To address security concerns, each country has a uniform approach to risk-management;
• Customs officials of the sending country will inspect containers and cargo that are high-risk at the request from the customs officers of the receiving nation.
• The Customs Authorities will define the benefits to businesses who meet minimum supply chain standards.

SAFE is built around the AEO Program.

Who is eligible for AEO Certificate Status?

AEO certification is available to all economic operators, including their commercial partners, who are involved in the international supply chains: producers, exporters and shipping companies.

Who is Eligible to Obtain AEO Certification

The subjects that can apply for AEO certification include:

• Economic operators who are based on the customs territory and carry out customs-related activities;
• Non-EU Economic Operators if there is an agreement for mutual recognition of the AEO Certificate between Community and the Third Country where the applicant has established.
• Non-EU maritime or air companies with a local branch or who benefit from simplified customs.

The European Commission maintains a data base of AEO certified operators that have consented to their publication.

What are the Advantages of Becoming an AEO

Authorized Economic Operators enjoy a number of benefits, which can be classified into two categories: general benefits and customs control benefits.

• Access to simplified customs procedures;
• Facilitating security controls
• Prior notice is required in the event of a selection for inspection.
• Reduce the number of data required for the Customs Summary Declaration;
• Reduced physical and document controls of shipments
• Priority of cargo when selected for control
• Possibility to choose the control location.

The Advantages of Working with an AEO

Companies that use service can benefit from. These benefits are derived directly from the customs authorities' incentives to AEOs, which transform import and export processes into streamlined, efficient, and secure ones:

• Reduced waiting time at the border and better logistical planning
• Security in the supply chain is increased;
• Simplifying the management of customs paperwork
• Priority treatment for selected shipments;
• Possibility to choose the control location.

What is AEO and How Does it Work

AEO Mutual Recognition is an important principle of international trade that facilitates trade between countries. This concept is based upon an agreement between two or three national customs authorities, according to which AEOs issued in their jurisdictions are mutually recognised. In the past, Authorized Economics Operator programs have been recognized by a number of countries, including Norway, Switzerland and the United States. While many countries use the CEE acronym "AEO", others, like the United States C-TPAT, use other acronyms equivalent to it.

How ASC Will Help

The document, standard operating procedures (SOP), and process map of international trade are the starting point for an AEO Certification. ASC can assist in documenting international trade processes in the form SOPs, as a first step towards an organization effort to formalize AEO registration.

ASC Group adopts a comprehensive approach to obtaining AEO certification status, starting with the planning stage and readiness assessment up until the final approval for AEO registration status.

• Analysis of the current level of security and other areas required for AEO license status
• Help in preparing SOPs and setting the Standards for AEO registration
• Help in organizing information and documents to file the AEO license application
• AEO License Authorities require that you prepare, file and support the application.
• Independent internal review of the Security Standards, compliance with other requirements and improvement areas for AEO registration before physical verification by AEO Certification Authorities
• Support for physical verification provided by AEO Registration Authorities
• Follow up with AEO authorities until the AEO certification is completed

Help in Complying with AEO Registration Status requirements.