An Authorised Economic Operator (AEO) is a certification granted by customs authorities to companies involved in international trade that demonstrate compliance with customs regulations and security standards. AEO certification was introduced by the World Customs Organisation (WCO) in 2005 to enhance global supply chain security and facilitate trade.
AEO status is recognised globally and allows companies to benefit from simplified customs procedures and fewer physical and document checks when trading goods across borders. The AEO status is available to any company involved in the international movement of goods, including manufacturers, exporters, importers, carriers, brokers, freight forwarders, and warehouse operators.
What does it mean to be an Authorised Economic Operator?
To become an AEO, companies must meet specific criteria that demonstrate their standards of competence, compliance with customs regulations and security standards. The criteria vary depending on the type of AEO certification sought, but in general, companies must demonstrate that they have robust processes and controls in place to manage their supply chain effectively and securely.
Companies seeking AEO status must submit an application to their local customs authority, which will then carry out an audit of their operations to verify their compliance with the relevant criteria. If the customs authority is satisfied that the company meets the criteria, it will issue an AEO certificate.
What types of AEO certification are available?
AEOC (Customs simplifications) for companies that demonstrate compliance with customs regulations, including record-keeping, financial solvency, and security standards.
AEOS (Security and safety) for companies that demonstrate compliance with security standards related to the physical protection of goods, people, and facilities involved in international trade.
AEOF (Customs simplifications/security and safety) for companies that meet both the customs simplifications and security and safety criteria.
What are the advantages of using an Authroised Economic Operator?
Using an AEO can provide significant benefits for companies involved in international trade. Here are some of the key advantages:
Demonstrates high standards: An AEO certificate is evidence that a company has met stringent customs and security requirements, giving customers and suppliers confidence that they are working with a reputable and reliable partner.
Simplified customs procedures: Companies with AEO status benefit from simplified customs procedures, which can help to speed up the movement of goods across borders, reduce paperwork, and lower costs.
Fewer document checks: AEOs are subject to fewer physical and document checks, reducing the risk of delays and improving supply chain efficiency.
Improved security: AEOs are required to implement robust security measures to protect their supply chains from security threats, which can help to reduce the risk of theft, fraud, and terrorism.
Competitive advantage: AEO status can provide a competitive advantage for companies, particularly when bidding for contracts that require customs compliance and security standards.
In conclusion, AEO status is a valuable certification for companies involved in international trade. It demonstrates compliance with customs regulations and security standards, simplifies customs procedures, reduces the risk of delays, and improves supply chain efficiency. Companies that hold AEO certification can benefit from improved security, a competitive advantage, and enhanced customer and supplier confidence.
Key takeaway’s
- An Authorised Economic Operator (AEO) is a certification granted by customs authorities to companies involved in international trade that demonstrate compliance with customs regulations and security standards.
- AEO certification was introduced by the World Customs Organisation (WCO) in 2005 to enhance global supply chain security and facilitate trade.
- AEO status is recognized globally and provides benefits such as simplified customs procedures and fewer physical and document checks when trading goods across borders.
- To become an AEO, companies must meet specific criteria and undergo an audit by their local customs authority to verify compliance.
- There are three types of AEO certification: AEOC (Customs simplifications), AEOS (Security and safety), and AEOF (Customs simplifications/security and safety).
- The advantages of using an AEO include demonstrating high standards, simplified customs procedures, fewer document checks, improved security, and gaining a competitive advantage in international trade.
What’s next?
TEPS has delivered a number of stringent programmes to ensure we are AEO compliant, which has been created by the World Customs Organization (WCO). Find out about the services TEPS can provide as your key accredited warehousing partner, and benefit from the perks of storing your product with an AEO.
