Authorised Economic Operator (AEO) status
Authorised Economic Operator (AEO) status is intended as a means of identifying compliant businesses that import from or export out of the EU.
Any legal entity involved in activities covered by customs legislation and forming part of the international supply chain can apply for AEO status. This includes logistics operators, carriers, freight forwarders and customs agents.
H.M. Revenue & Customs are responsible for granting AEO status in the UK. The decision by a business to apply for AEO status will be for commercial reasons – there is no legal requirement to apply.
There are 3 categories of AEO available:
- customs simplifications;
- security and safety; or
- both.
The first of these is purely an EU
addition and holders will not benefit from the anticipated
international
agreements. It is
recommended that
businesses apply for the joint certificate from the outset.
It is expected that the AEO status will
also provide for international mutual recognition, within the concept
of
international customs agreements.
For
example, this is the objective of the currently ongoing EC-US
cooperation on
container security.
The benefits of AEO authorisation are basically two-fold:
- it will assist the authorities in identifying
which consignments may be given less attention.
AEOs will benefit from fewer physical and
document-based controls and priority treatment if selected for control. They will possibly be able
to request a specific place for any such control.
The main procedural advantages for AEO won’t be felt
until the requirements for pre-arrival and pre-departure are introduced
in July 2009 and the changes linked to the Modernised Customs Code are
introduced, probably some time in 2010 ; and
- those with AEO authorisation can be identified as reliable trading partners. It is more than probable that overseas banks and the overseas equivalents of UKTI and Chambers of Commerce etc. will be advising their clients that an AEO authorised company should be their first choice when seeking a new trading partner in the EU. AEO status may well become invaluable in the international market place.
It is anticipated that larger, “blue chip” companies will generally be the first to make application for AEO status and that SMEs will join later as commercial pressures apply. Any UK business seeking markets outside Europe should be seriously considering applying for AEO status sooner rather than later.
I
can assist you in making application for Authorised Economic
Operator status. I
look forward to
hearing from you.
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