Authorised economic operator ("AEO")
Are you involved in the international supply chain? If so, you may be becoming increasingly aware of the new AEO status due to be introduced on 1 January 2008.
AEO is a measure being introduced to improve global security in the supply chain. AEO certification will be recognised by customs authorities across the EU that a business is a reliable trading partner. It is not mandatory but accreditation may lead to less customs checks and improved clearance times for goods.
There are different types of AEO authorisation available and the application process isquite involved and complex. Information on the application process including a questionnaire is available on the HMRC website. Explanatory notes for both the application and the questionnaire are also available.
Once applications are received, HMRC will review the business in detail to ensure that it meets the level required for AEO accreditation. Other EU member states are somewhat behind the UK and are still working through the administrative details.
Businesses need to decide whether their business model would benefit from AEO status. It appears initially that there are limited positive benefits although the EU has indicated that further benefits may become available when further simplified customs procedures are introduced in 2009/2010. Certainly if you are involved in the supply of “high risk” goods such as pharmaceuticals or excise goods, there may be significant benefits in obtaining AEO status.
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