AEO SOLUTIONS LIMITED

Authorised Economic Operator

New procedures for UK exporters

Since September 11^th 2001 significant efforts have been made to increase the levels of International Security, not only for counter terrorism reasons, but also in the fight against organised crime and other threats to society.  The introduction of Authorised Economic Operator (AEO) status is the European Community’s response to the need to secure international supply chains and the introduction of Customs-Trade Partnership Against Terrorism (C-TPAT) in the USA and the development of the Safe Framework of standards in the World Customs Organisation.

The aim of AEO status is to provide businesses with an internationally recognised quality mark which will indicate that their role in the international supply chain is secure and their customs controls and procedures are efficient and compliant.

What is an AEO?

An economic operator with AEO security and safety status implies that apart from being reliable in the traditional financial and customs terms, you are also compliant in respect of security and safety standards and can therefore be considered as a “secure“ trader and thus a reliable trading partner. This will enable the operator to benefit from a number of customs incentives when sending or receiving goods into or out of the European Union

What are the benefits?

The award of AEO status will enable the operator to benefit from certain facilitations of customs control at entry and exit of the customs territory. This will mean; a lower risk score used to determine the frequency of physical and documentary checks. Fats tracking through customs, receiving priority if the goods are stopped for checking, reduction in data requirements for the declarations scheduled to begin in 2009, a recognised status throughout Europe. An industry recognised “kite mark”, potential for future reciprocal arrangements with other trading partners such as the USA.

EU Customs officials will be concentrating their efforts on those companies that have not complied with these new procedures. Failure to achieve AEO status could mean that you are subjected to excessive delays leading to increased lead times.

All elements of the supply chain must conform to AEO standards and failure by one will invalidate the entire process. As it is likely that the EU will publish lists of those companies that do comply businesses are more likely to do business with accredited companies than those who are not.

What needs to be done?

To achieve AEO status the operator must prove to HMRC that the have a safe and secure end to end supply chain. This will include:

1.           An appropriate record of compliance

2.           Proof of a satisfactory system of managing commercial, transport and customs records.

3.           Proven financial solvency

4.           A full safety and security audit of your business including the supply line in accordance with ISO 280011

What to do now?

Businesses that want to meet the new AEO standards will need to start preparing now to ensure that they can meet the standards required.

Scrutton Bland and Four Pillars Security Ltd have joined forces to form AEO Solutions Limited. AEO Solutions Limited can assist companies to reach certification offering a four phase process:

1. The initial evaluation and consultation;

2. Detailed report and recommendations;

3. Implementation of Phase 2 recommendations and application for accreditation;

4.  Ongoing support and audit of compliance.

Whilst not all companies will need assistance on all four phases it is likely that the initial evaluation will be essential to assess whether an application can be successfully made. If this initial assessment highlights shortcomings in financial and security procedures then it is vital that these are addressed before submitting an application as a failure to achieve the required standard will further delay the benefits conferred by AEO status.

For more information please download: An AEO Solutions Guide

Or alternatively please contact: mail@aeosolutions.co.uk.