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Insight in your AEO status
Customs authorities are increasingly focusing on compliance and ensuring safe and secure trade lanes. Companies with the status of an Authorized Economic Operator (or their non-EU counterparts) help to ensure this and are facilitated with less logistic delays and less administrative burden. Deloitte's Global Trade Advisory specialists in various countries around the world can help you with the application and maintenance of this authorization.
Authorized Economic Operator
As a response to the attacks on 9/11 in New York the European Commission introduced the concept of 'Authorized Economic Operator' (AEO). This concept is intended to enforce both safety in the supply chain as customs compliance within the EU. AEO affects every company that buys, sells, transports in or out of the EU.
The advantages of being an Authorized Economic Operator are:
- fewer physical and document inspections
- priority when selected for an inspection
- inspections carried out at a specific address when the holder so requests
- no inspection of criteria inspected earlier when an application for a permit is submitted
- advance notification of inspections
- the submission of fewer data in summary declarations
The AEO concept is based on a standard provided by the World Customs Organization. Throughout the world, customs authorities have comparative standards which are increasingly mutually recognized to ensure a safe and secure trade supply chain from producer to customer.
Why act now?
Digitalization and compliance benefits
The increasing digitalization of compliance and reporting obligations requires businesses to manage and report their global trade activities electronically. Real time self-assessment and control checks are becoming standard.
Furthermore, some customs simplifications will only be granted or maintained for companies having an AEO authorization. Certain authorizations which are mandatory for specific business processes are closely related to AEO and may be affected when losing the AEO status.
The British public has spoken and made clear that they see the UK’s interests best-served by leaving the European Union. What impact will borders have between EU and U.K. for you? You could pro-actively request an AEO authorization for entities in the UK before the Brexit as AEO might still be valid after the Brexit through mutual recognition of AEOs. This will enable you faster clearance of AEO goods at the border.
Customs Authorities have to re-assess all AEO certificates issued before May 1, 2016 and convert them into an AEO permit before May 1, 2019. This is done in the context of the implementation of the Union's Customs Code (UCC). We can help you to be prepared for this re-assessment of AEO.
The AEO Scan is designed to provide insight in your AEO status. This online tool facilitates you in the AEO application as well as the maintenance of the AEO criteria. The AEO Scan is based on the requirements as set forth in the European customs legislation and on the AEO guidelines as published by the European Commission.
Benefits AEO Scan
Using the AEO Scan, you will benefit from:
- AEO compliance check before customs authorities get involved
- Smart questioning through an online platform
- Easily assigning of questions to relevant persons within your company
- Process overview to facilitate process management
- Easily understandable insight in the results by means of color coded dashboards, allowing you to benchmark different entities within your organization and identifying risk area’s
- Auto-generated AEO Scan report
Assistance and advisory
Deloitte has years of experience in developing digital customs solutions. Deloitte's Global Trade Advisory specialists in various countries around the world can help you interpret the outcomes of the AEO Scan. We are happy to help you with customs compliance, possible simplifications, efficiency and manage the risks and costs associated with customs and global trade management.
Would you like to know more?
Would you like to know more about AEO? Please contact Johan Hollebeek via +31 (0)88 2881992