- What is an AEO?
- Who is eligible?
- What types of certificate are available?
- What are the benefits?
- Why act now?
- How does a company apply?
- How can a company speed up the process?
1. What is an AEO?
An Authorised Economic Operator (AEO) is a business within the supply chain that has demonstrated to Customs that they are trustworthy, reliable, compliant and, where applicable, safe and secure. Once certified, their status is recognised throughout the European Community.
2. Who is eligible?
The AEO status is applicable to any company which carries out activities covered by Customs legislation that forms part of the international supply chain. This could cover importers, exporters, manufacturers, warehouse keepers, carriers, freight forwarders, customs agents and indeed any other player within the supply chain.
3. What types of certificate are available?
There are three types of certificate available:
- Customs simplifications (AEOC)
- Security and safety (AEOS)
- Combined Customs simplifications/security and safety (AEOF)
Applicants will need to demonstrate Customs compliance, suitable accounting and logistical record keeping, proven financial solvency and (if applying for the security or combined certificate) adequate security and safety standards.
4. What are the benefits?
To find out more about the benefits of AEO, click here
5. Why act now?
- Having AEO certification will make it much easier to benefit from simplified Customs clearance and centralised clearance from 2010.
- Customs will take five months on average to process applications. This may increase as more and more companies apply. The longer you leave it, the longer the process and wait will be.
- Companies with existing certifications may already meet much of the criteria. They could be losing out when they could achieve certification with minimal investment.
- Where improvements are required, then these will need to be properly budgeted and implemented. Knowing this sooner rather than later will enable businesses to make better informed decisions and plan accordingly.
6. How does a company apply?
Companies must apply to the customs administration of their relevant EC Member State.
If a company (being a single legal entity) has operations across several Member States, then the application must be sent to the customs administration of the Member State where your main accounts related to customs arrangements are held, OR where a significant part of the operations to be covered by the certificate are carried out. The application must cover all of the business activities related to the international supply chain across all of the relevant Member States.
However, if the company has set up separate legal entities in other EC Member States (e.g. as Subsidiaries), then those legal entities will need to apply separately to their own Member State.
7. How can one speed up the process?
There are a number of things you can do prior to submitting an application to ensure that the process runs as smoothly and quickly as possible.
- Carry out a detailed assessment prior to submitting your application. The more thorough the assessment, the easier it will be for Customs to audit.
- If applying for the security element, ensure a proper threat assessment and risk analysis has also been carried out and documented, and that appropriate countermeasures have been implemented.
- Include any expert conclusions or independent reviews.
- Review guidelines against any of the following standards or memberships that you might already have in place. For example:
- Existing Customs simplifications and trade facilitations in place;
- European security or safety certificates e.g.
- International Ship and Port-Facility Security (ISPS) code (maritime);
- Regulated Agent or Known Consignor (air);
- Any relevant International standards. e.g.
- ISO 9001, 14001, 11712, 17799, 20858, 27001, 28000, 28001 or 28004;
- Technology Asset Protection Association (TAPA) certificate.
None of the above will give blanket coverage of all AEO criteria, but there will be areas in each that can be used against specific AEO criteria as evidence of compliance.
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