Applications to be an AEO
AEO accreditation is now being issued by HMRC and customs bodies across the EU. It provides access to new regulatory fast tracks procedures and waivers offered by HMRC and identifies your enhanced status within any supply chain and to your prospective trading partners including meeting US import C-TPAT requirements:
Simplified Customs Procedures with AEO
Once approved your company will benefit from simplified customs procedures and be facilitated on security requirements. Anyone, whatever the size of their business involved in the supply chain can apply, including; logistics operators, carriers, freight forwarders and customs agents. HMRC will expect that prospective AEOs must be: financially solvent, compliant and able to demonstrate satisfactory management systems. If applying for security status the applicant must also demonstrate that it is compliant in security and safety standards.
The Union Customs Code 2013 onwards
The measures were originally introduced by an amendment to the European Union’s Community Customs Code in April 2005, Regulation 648/2005. The arrangements came into force in January 2008 and by mid 2013, nearly 12,000 AEO certificates had been issued across the EU – but only just over 300 in UK, so you can be one of an elite “club”!
A new EU Regulation (952/2013) was published in October 2013. It set out the objectives for what is now the Union Customs Code: the mechanics of its implementation were detailed in regulations from 2014 onwards and implementation finally started in May 2016. The UCC regulations are of great relevance both to all our clients who have successfully gained AEO accreditation and to those companies and organisations who are considering applying for AEO accreditation, not least as the benefits of AEO status are now clearly stated and codified in overriding European legislation including:
1. Compliant and trustworthy Economic Operators should enjoy the status of AEO.
2. Guarantee reductions or waivers
3. Automatic permission to use simplified procedures
4. Lower physical and documentary checks
5. Centralised clearance
6. Mutual recognition benefits
The regulation is a complete “belt and braces” review of customs procedure including tariff classification. It also spells out the future for member States to engage and co-operate in a paperless administration of Custom procedures and movements. Why not call our AEO experts Steve Plowman, Geoff Whittingham & Mike Vincent to discuss this further?
The Objectives of AEO are:
- To provide proper security controls to ensure the protection of the internal markets and in close co-operation with major trading partners around the world.
- To provide facilitation to these traders (AEOs) which demonstrate compliant efforts to secure their part of the international supply chain.
The Benefits of AEO Are:
- AEOs will enjoy a lower risk score incorporated into a Customs Risk Management System, reducing the need for physical and documentary checks on consignments
- Fast tracked consignments and priority clearance
- Simplified pre-arrival/departure summary declarations
- Recognised status across the EU
- THe ability to obtain Guarantee Waivers and other procedures
- Trading with the status of an AEO will enhance business opportunities, as it will provide confidence to other prospective trading partners and authorities, both in the EU and worldwide, similar to having a British Standards Kite Mark.
- Participation in the mutual recognition agreements, with countries like the USA, Japan and China
- Meet the growing trend for trading partners to mandate participation
- Reductions in shipping insurance costs could be achievable for an AEO holder
- Local clearance facilities (anywhere in the EU) will be enhanced if AEO status is held
- A number of benefits will accrue to AEO holders with the progressive implementation of the Union Customs Code