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What is AEO?

An Authorised Economic Operator certification is becoming more important to businesses not only in the UK, but also across Europe and the wider international community, but how do you qualify and what effect does it have?

Since 2007, authorities throughout the European Union have been working in conjunction as a way of trying to simplify and standardise customs procedures. An AEO (Authorised Economic Operator) certification is one scheme implemented by member countries which could improve your supply chain efficiency.

 

Which businesses should apply for AEO?

Member countries are able to grant AEO status to any business which operates within the following sectors:

  •          Manufacturers / Warehouse Operators
  •          Exporters / Importers / Suppliers
  •          Freight Forwarders / Customs Agents
  •          Carriers / Airline Handling Agents and more…

 

Criteria for AEO 

These businesses do however have to meet the following criteria in order to be considered:

  •          Be customs compliant
  •          Have appropriate record keeping
  •          Financial Solvency
  •          Appropriate security and safety standards.

Qualifying organisations can expect to benefit from not only a reduction in the number of control checks carried out by customs but also being viewed as a trusted regulated agent or shipper.

 

Advantages of AEO status

Businesses can also expect fewer customs related supply chain delays due to their consignments being treated as priority when stopped for inspection, whilst still contributing to improved levels of international cargo safety and security.

These perks, coupled with international recognition of the scheme by customs in key economies such as India, USA, Japan and China gives AEO certified companies a distinct advantage.

Furthermore, businesses can often discover hidden inefficient practises throughout the auditing and application process, which can be corrected and improved once granted authorised status.

If you wish to discuss the Authorised Economic Operator program in more detail and discover how this may impact on your business, please contact us.

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