According to the Community Customs Code, an Authorised Economic Operator (AEO) is a natural or legal person who, in the course of their professional activities, carries out activities governed by customs legislation. An AEO is entitled to customs benefits throughout the European Union.
As AEO consultants, we can help you become an Authorised Economic Operator.
In general, the requirements for obtaining AEO certification are:
- General Requirements:
- Regulatory compliance: The company must have a track record of compliance with customs and tax regulations, with no history of serious or repeated infringements.
- Financial solvency: It must demonstrate that it has a sound and stable financial position.
- Proper management of accounting and commercial records: It must have a record-keeping system that allows for efficient control of operations and is available for audit by the customs authorities.
- Security Requirements:
- Supply chain security: Measures must be implemented to ensure the security of the logistics chain, from the production or procurement of products through to their transport and delivery.
- Access control: Physical and access control mechanisms must be in place to protect goods and personnel involved in operations.
- Transport Process Security: The security of the means of transport used must be ensured, whether owned or subcontracted.
- Staff Security Training: Key operational staff must receive adequate training in security practices to reduce risks associated with the logistics chain.
- Risk Assessments: The company must implement processes to identify and mitigate risks within its supply chain.
FAQs on AEO certification
Some of the questions regarding the AEO are:
Why is there an Authorised Economic Operator status?
The various risks facing the European Union have made it necessary, in addition to carrying out traditional customs checks, to expand the role of customs in ensuring the security of the international supply chain through the Authorised Economic Operator (AEO) scheme. Its aim is not only to combat the terrorist threat, but also to assist in the fight against organised crime, as well as to protect citizens from other dangers, such as in the areas of consumer protection or the environment.
Through the Authorised Economic Operator (AEO) scheme, customs authorities facilitate legitimate trade. This is easily achieved with our consultancy services for implementing the Authorised Economic Operator scheme and our methodology based on ‘Gesttic – AEO Software’ for straightforward management.
The AEO scheme will soon be renamed Trust & Check.
Is it compulsory to be an Authorised Economic Operator?
Becoming an AEO is only mandatory if your client requests it or if it is a requirement for processing specific customs applications. The decision to become one or not depends on a cost-benefit analysis.
The AEO certificate must be re-assessed; we can assist you with our AEO outsourcing service and internal AEO audit.
Each company must determine whether the benefits outweigh the costs of complying with the relevant customs requirements.
What types of AEO certificates are there?
With our AEO consultancy, you can obtain the following types of Authorised Economic Operator certificates:
- AEO Certificate for Customs Simplifications. This relates to the various customs procedures you carry out.
Authorised Economic Operator (AEO) Certification for - Security and Safety. This is linked to ISO 28001 for security in the chain of custody and ISO 27001 or ENS for information security.
- AEO Certificate for Simplifications and Security. This involves meeting the requirements of the two previous types of AEO certificate.
What type of AEO certificate should be applied for?
There is no single answer to this question, as it depends on the benefits the applicant seeks in their dealings with Customs and in their commercial operations.
For example:
- A shipping company may not be interested in becoming an AEO for customs simplifications, but may be interested in security-related aspects.
- A customs agent who only submits declarations on behalf of third parties may only be interested in becoming an Authorised Economic Operator for customs simplifications.
- An exporter wishing to be regarded as a trusted partner in their international dealings will be interested in an AEO certificate covering both simplifications and security.
In any case, situations other than those mentioned are entirely conceivable.
If I only apply for an AEO certificate for customs simplifications, will I be able to extend my certificate to cover security and safety as well?
Your application will be subject to a further audit to verify that the conditions and criteria relating to security and safety are met. If appropriate, a new customs simplification/security and safety certificate will be issued.
Further information is available from the AEO consultancy.
What are the benefits of the Authorised Economic Operator certificate?
Thanks to the benefits of Authorised Economic Operator (AEO) status, the AEO scheme offers:
- Fewer physical and documentary checks,
- Priority for AEOs during checks,
- The option to choose the location of the inspection (including the national central clearance office),
- Greater ease for Authorised Economic Operators in accessing simplified customs procedures,
- Summary declarations for entry or exit with reduced data, and prior notification of the decision to carry out a physical examination.
Furthermore, being an Authorised Economic Operator brings indirect benefits such as increased sales (following the Marketing Plan drawn up for this purpose), easier access to Customs, and international recognition of the status in commercial relations.
What happens if I don’t apply for Authorised Economic Operator status?
The current relationship between authorised economic operators and customs will remain unchanged. Customs simplification authorisations already granted to AEOs will not be revoked.
If I obtain the AEO certificate for simplified procedures, will I be able to act on behalf of other companies in dealings with Customs?
The status of Authorised Economic Operator is NOT synonymous with that of a customs representative or agent. The AEO certificate does not authorise the holder to represent third parties before the customs authorities.
The Authorised Economic Operator must be previously authorised to represent other persons before Customs. The AEO must hold the status of customs agent, customs representative or be authorised as an indirect representative.
Is one of the benefits granted to Authorised Economic Operators that they are not required to provide a guarantee for their transactions with Customs?
As such, it is not an advantage for an AEO to be included in EU regulations. The requirement to meet financial solvency criteria is a condition for obtaining AEO status.
What is the difference between an OEA and a Trust & Check?
The key difference between an Authorised Economic Operator (AEO) and the Trust & Check programme lies in their approach. The AEO focuses on ensuring security and customs compliance throughout the supply chain, whilst Trust & Check focuses on establishing a system of trust and verification between trading partners to improve their transactional relationships.