25. December 2017 Just before the solar new year and after thorough examination by Chinese Customs authorities, Tatwah Smartech obtained the AEO (F) status (Authorized Economic Operator)…..

According to the World Customs Organization (WCO), an authorized economic operator (AEO) is

“a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards. Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors”

The growth of global trade and increasing security threats to the international movement of goods have forced customs administrations to shift their focus more and more to securing the international trade flow and away from the traditional task of collecting customs duties. Recognizing these developments, the WCO, drafted the WCO Framework of Standards to Secure and Facilitate global trade (SAFE). In the framework, several standards are included that can assist Customs administrations in meeting these new challenges. Developing an Authorized Economic Operator programme is a core part of SAFE.

The WCO framework of standards to secure and facilitate global trade

The AEO concept is one of the main building blocks within the WCO SAFE Framework of Standards (SAFE). The latter is part of the future international Customs model set out to support secure trade. SAFE sets out a range of standards to guide international Customs Administrations towards a harmonised approach based on Customs to Customs cooperation and Customs to Business partnership.

SAFE is based on four core elements:

  1. harmonization of the advance electronic cargo information

  2. each country that joins SAFE commits to employing a consistent risk management approach to address security threats

  3. on request of the Customs administration of the receiving nation, the customs administration of the sending nation will perform an outbound inspection of high-risk containers and cargo.

  4. definition of benefits that Customs will provide to businesses that meet minimal supply chain security standards and best practices.

The essence of the AEO-concept can be found in the Customs-to-Business partnerships. Operators can be accredited by Customs as AEOs when they prove to have high quality internal processes that will prevent goods in international transport to be tampered with. I.e.:

  • Ensure the integrity of the information, i.e. what is said to be in a container, really is in the container and nothing else, more, or less;

  • Ensure the integrity of its employees, that they will not put goods in the container that should not be there; and

  • Secure access to its premises, to prevent unauthorised persons to put goods in the container.

As a result, customs will trust the operator and perform less or no inspections on goods imported or exported by or via the AEO. This benefits the mover of the goods as goods are available more quickly, which means lower transport costs. Customs benefits as scarce inspection capacity can be targeted better at cargo of unknown and potentially unsafe operators.

Source: https://en.wikipedia.org/wiki/Authorized_economic_operator


Benefits of a Customs Simplification AEO (C) Certificate

  • Simplified declaration procedure under CFSP

  • The local clearance procedure under Customs Freight Simplified Procedures (CFSP) and the National Export System (NES)

  • Simplifications for regular shipping services

  • Guarantee waivers

  • Centralised clearance where more than one Member State is involved

  • Accreditation of agents who wish to operate in more than one Member State

  • The ability to apply for a single community authorisation to use simplified declaration procedures across the EU

  • The ability to apply for a special procedures authorisation involving more than one Member State

  • Self-Assessment

  • Recognised status across the EC

  • An industry “kite mark” and useful marketing tool

Benefits of a Security and Safety AEO (S) Certificate

  • A lower risk score used to determine the frequency of Customs’ physical and documentary checks consignments may be fast tracked through customs controls. If selected for examination priority will be given over non-AEO consignments

  • When required to make pre-arrival/pre-departure summary declarations, AEOs will be able to omit certain data elements from the declaration

  • Potential for future reciprocal arrangements and mutual recognition with countries outside the EU, for example, USA or trading partners that adopt the WCO Safe framework

  • Recognised status across the EC

  • An industry “kite mark” and useful marketing tool

Benefits of a combined AEO (F) Certificate

As a holder of the combined AEO certificate (AEOF) you will receive the benefits of both AEO types.

Indirect benefits of having AEO status

There may be other commercial benefits in having AEO status or in carrying out the work necessary to document procedures and improve the security of your supply chain to obtain AEO status. These may include reduced incidences of theft or losses in transit, improved security and communication with your partners in the supply chain and improved customer confidence.

source: http://aeo.langdonsystems.com/what-is-aeo/