An Authorised Economic Operator (AEO) status is an ‘internationally recognised quality mark indicating that your role in the international supply chain is secure (you will be unaffected by future legislation), and that your customs controls and procedures are efficient and compliant’.
Although currently not mandatory, businesses accredited with an AEO status, have a commercial advantage when importing and exporting. Those holding the status benefit from streamlined customs processes and fast-tracked shipments through boarder control. Indirectly, the status strengthens the business’s reputation as a safe and secure trading partner, giving them a competitive advantage.
Due to the changing face of international trade and World Customs Organisation (WCO) objectives, the requirement for businesses to hold an AEO status may significantly increase, as those holding it will, by default, receive priority clearance. Those not accredited will be subject to detrimental impacts on their customs related activity, both operationally and financially.
The benefits of AEO
- Reduced administration
- Movement of goods
- Improved security & safety
- Improved supply chain predictability and consistency
- Simplified Customs declarations and EIDR (Entry in Declarant’s Records)
- Transit simplifications
- Priority treatment of consignments if selected for control
- The option of a centralised clearance self-assessment
- Easier admittance to special procedures such as CSFP (Customs Freight Simplified Procedures), temporary storage and customs warehousing
- Duty deferment guarantee reduction and SIVA (Simplified Import VAT Accounting)
- Guarantee reductions or waivers
- Removal of previous sales provisions relating to valuations
How we can help
Successfully achieving an AEO status for a business can be a time consuming, challenging and daunting exercise. As the only Chamber of Commerce to be AEO accredited, we can help your business through every step of the process, from preparing and assessing if your business is ready to submit a formal application, to successfully achieving and maintaining the status.
We offer two tiers of service:
Tier 1 – Customs Compliance Audit
Working with your finance and operations departments, and any staff involved in international trade administration we will conduct a full audit and risk assessment of your current international operations and customs procedures against the required standard. You will be provided with a detailed corrections report of the actions your business needs to take, and any enhancements and changes that need to be made to achieve a successful application for AEO status.
Subject to the complexity of your company’s structure and the number of sites to cover, this process typically takes two days. At this stage, subject to our recommendations, if required we can continue to full AEO approval (see tier 2).
Tier 2 – Full AEO Approval
This level includes working with your business through the entire compliance and application process for AEO status. In this case your business will achieve the level of compliance required to become accredited with Registered Exporter Status (REX), Approved Exporter Status (AES) and Authorised Economic Operator (AEO). Your business will also meet the standard for ISO 28000 approval.
The first stage of this tier will involve conducting an initial control assessment of your business against the required standard (see tier 1). We will then support your business in implementing any new procedures required and ensure that your documentation for ongoing WCO are upheld.
As part of the application process HMRC will visit your business to conduct its own audit, evaluating your finances, shipping procedures, site security and customs compliance. As such we will conduct a trial application prior to submitting your application, to ensure nothing is amiss.
Finally, we will assist you in completing every section of the final application and be present through the HRMC audit.
For more information on any aspect of AEO, please contact our team on 0114 201 8888 or email firstname.lastname@example.org.