No escape from AEO.

All EU-based economic operators are able to opt for Authorized Economic Operator (AEO) status since 1 January 2008. Eligibility for AEO status is open to all the links in the supply chain, i.e. manufacturers, exporters, forwarding agents, bonded-warehousing companies and importers.

The following three categories of AEO status are available:
1. AEO Customs Simplifications ;
2. AEO Security and Safety;
3. A combination of these two categories.

The European customs administrations will exercise their supervisory duties in a completely different manner in the future. Their supervision will be based primarily on the use of computerized systems. All enterprises operating in the links of the European supply chain will have to submit to this system. For this reason, it is important for entities to qualify as an Authorized Economic Operator. AEO status has a significant impact both on the supply chain and on individual economic operators. Published guidelines indicate interaction with business processes related to logistics, security and safety, internal financial control and IT systems.

Although the participation in the program is voluntary there is no escape possible for economic operators. Participation will be forced upon by supply chain partners but also by customs through the "backdoor." Already existing customs licenses are currently reviewed and withdrawn if the licensee does not meet requirements identical to the AEO requirements before January 1, 2012. It is also true that, although AEO status is not mandatory, companies applying for SASP licenses (see below and also SASP) will need to meet requirements identical to the AEO requirements.

AEO direct benefits

• Fewer physical and document-based controls
• Priority treatment of consignments if selected for control
• Choice of the place of controls;
• Fewer physical and document-based controls
• Priority treatment of consignments if selected for control
• Reduced data set for summary declarations; and
• Prior notification

In the Netherlands, since 2010, holders of the Security and Safety Certificate and the combined Customs Simplification and Security and Safety Certificate receive the following additional advantages:

• Possibility of prior notifications of controls
• Possibility to submit a summary declaration

Representatives of the business community have requested other AEO facilities, for example reduction of guarantees. The Ministry of Finance decided to reduce the guarantees for enterprises with an AEO certificate. This will make the AEO status, especially under difficult economic circumstances, more attractive to the Dutch business sector.

AEO indirect benefits

• Reduced theft and losses
• Improved planning;
• Improved customer loyalty;
• Improved employee commitment
• Reduced security and safety incidents;
• Lower inspection costs of suppliers and increased co-operation
• Reduced crime and vandalism;
• Reduced problems through recognition of employees;and
• Reduced security and safety incidents

Services offered by CustomsAdvisoryPlus

CustomsAdvisoryPlus’ network is well equipped to assist your company with the application of the Authorized Economic Operator status. Our AEO team, covering multiple disciplines, guides companies through the AEO certification process (application form, self assessment, annexes, audit,…).

We understand the needs in view of the self-assessment concerned and setting up procedures. We also assist companies during the preparation for and the actual audit performed by Customs related to the certification process. Concerning the impact of AEO on Distribution Center Design we refer to here.

Our services could also cover the implementation of a monitoring process.
CustomsAdvisoryPlus together with network partners can offer an AEO tool to support your AEO certification process. This web-based tool (see: software solutions) decreases the efforts of internal/external resources and reduces the project time needed for implementation.

E-learning program

More detailed information on this subject (an e-learning training program developed by the EU Commission), can be found under AEO helpful links).