Authorized Economic Operator (AEO)
Suitable for companies that wish to become a trusted name in the trade community.
Overview
AEO is a compliance program under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade. The program aims to enhance international supply chain security and facilitate the movement of legitimate goods. The program uses a ‘trust but verify’ approach with the trade community. To apply to the program, a prospective AEO certificate holder submits basic company information and a security profile. The AEO team checks on the company in terms of its general compliance, legal compliance, management of commercial and transport records, financial solvency and safety, and evaluates safety and security with respect to procedural security, premises security, cargo security, conveyance security, personnel security, business partner security, IT security and security training and threat awareness. The AEO team conducts an onsite visit to domestic facilities to confirm the security practices are in place and operational in case of higher certification levels. Efficient and compliant businesses are certified in the program.
Advantages
Eligible for 24 x 7 cargo clearance at all seaports and airports.
Inclusion of Direct Port Delivery of imports to ensure just-in-time inventory management by manufacturers – clearance from the wharf to the warehouse.
Inclusion of Direct Port Entry for factory-stuffed containers meant for export.
Provision of Deferred Payment of Duties – delinking duty payment and Customs clearance.
Benefits of Mutual Recognition Agreements (MRA) with other Customs Administrations.
Priority in processing and clearance of goods.
AEO certification can enhance a company's reputation and credibility in the marketplace, potentially leading to increased business opportunities and competitive advantages.
Mutual Recognition Agreement (MRA)
Mutual Recognition Agreements are the international face and connecting link of the domestic AEO Programs of various countries. It acts as an equalizer that harmonizes minor differences to allow for seamless facilitation in terms of benefits and processes for the movement of goods across borders for domestic AEO-accredited entities. Mutual Recognition of AEOs is a key element of the WCO SAFE Framework to strengthen the end-to-end security of supply chains and to multiply benefits for traders at a global level. By mutual recognition of AEOs, two customs administrations agree to recognize the AEO Authorization issued under the other countries' programs and provide reciprocal benefits to AEOs of the other countries' AEO entities.
How can we help?
We provide hand-holding to prepare all the required documents that are supposed to be presented to the customs authorities for verification purposes based on which the authorities grant the AEO accreditation. Our expert consultation in preparing the required documents enables businesses to prove their credibility and eligibility to become an AEO Status Holder.