Responsibilites & Benefits

 

What are the benefits to your company holding an AEO certificate?

 

Security & Safety AEO certificate:

• Recognition will enable businesses to have their consignment fast-tracked through customs controls. If a consignment is selected for examination they will recieve priority over non-AEO's.

• When the requirement to make pre-arrival/departure summary declarationsis introduced in July 2009, AEOs will be able to omit certain data elements from the declaration.

• Recognition status across the EU.

• Trade consider AEO status as an industry 'kite mark' and useful marketing tool.

• Potential, in future, to have reciprocal arrangements and mutual recognition with countries outside the EU e.g. USA (C-TPAT).

 

Simplification AEO certificate

• Access to certain simplifications in Customs procedures, such as guarantee waivers and certalised clearance may be restricted to AEOs.

• Recognised status across the EU that should make it easier for businesses to apply to use simplifications across the EU.

• Trade consider AEO status as an industry 'kite mark' and useful marketing tool.

 

Those AEOs who hold a joint 'Customs Simplifications/Security & Safety' certificate are entitled to ALL the benefits listed above.

 

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Indirect Benefits:

 

Any economic operator that meets the criteria and becomes an AEO may derive benefits that are not directly linked to the Customs side of his business.

 

Investment by operators in increasing their security and safety standards may yeild positive effects in the following areas: Visability and Tracking, Personnel Security, Standards Development, Supplier Selection and Investment, Transportation Capabilities, Collaboration among supply chain parties, Proactive Technology Investments and Voluntary Security Compliance.

 

Some examples of the indirect benefits that may result from these positive effects could be as follows:

• reduced theft and loses;
• fewer delayed shipments;
• improved planning;
• improved customer loyalty;
• imporved employee commitment;
• reduced security and safety incidents;
• lower inspection costs of suppliers and increased co-operation;
• reduced crime and vandelism;
• reduced problems through recognition of employees;
• improved security and communication between supply chain partners.

 

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Improved relations with Customs

 

In order to introduce good co-operation between Customs authorities and the AEO, it is recommended that the AEO has access to a service centre or a contact person in the Customs authority to which it can address its questions. The service centre might not be able to provide all answers on all questions but would act as an initial point of contact to the Customs authorities and guide the AEO on how best to proceed and whom to contact.

 

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Recognised as a secure and safe business partner

 

An AEO who meets the security and safety criteria is considered to be a secure and safe partner in the supply chain. This means that the AEO does everything in his power to reduce threats in the supply chain where he is involved. The AEO status enhances his reputation.

Furthermore, being a secure and safe partner in the supply chain allows faciliations from security controls.

 

The AEO could therefore be chosen as a business partner, instead of a non-AEO, when another economic operator is looking for new business partners.

 

 

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What happens if everyone involved in the supply chain is not authorised for the security and safety AEO status?

 

It is uncertain what impact this will have, although it is likely that in these circumstances, the supply chain may have a higher risk rating and therefore a higher probability of Customs intervention that a supply chain where all parties are authorised for the security and safety AEO status.

It is possible that our trading partners may require all the parties involved in the supply chain to have AEO status before mutual recognition of the supply chain is accepted.

 

Security requirements for 'Business Partners'

 

All operators in the supply chain that fall between the exporter/manufacturer and the consignee may be regarded as 'Business Partners'.

 

From a Customs perspective business partners may have the option to apply for AEO status but if they choose not to exercise that option, they should provide assurances to the other members of the supply chain regarding safety and security.

 

The security and safety standards in relation to business partners shall be considered to be appropriate if the applicant has implemented measures allowing a clear identification of his business partners in order to secure international supply chain.

 

Website: www.ukimports.org

 

Everything you need to know about importing goods into the UK and more.

 

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A business can only be held resonsible for their part of the supply chain and for the goods which are under their custody. Contractual arrangements with trading partners should demonstrate arrangements for assusring trading partners are aware of the requirements.

Manufacturer

• Ensure a safe and secure manufacturing process for its products.
• Ensure a safe and secure manufacturing process for its products.

 

Exporter

• Responsible for the correctness of the export declaration and for its timely lodgement, if the export declaration is lodged by the exporter.
• Responsible, if the export declaration is lodged by the exporter, for lodging an export declaration which contains the data elements of the exit summary declaration, once the provisions on exit summary declaration will become applicable from 1July 2009.

• Apply the legal export formalities in accordance with the Customs rules, including commercial policy measures and where appropriate, export duties.
• Ensure a secure and safe supply of the goods to the carrier or freight forwarder or Customs agent.

 

Freight Forwarder

• Apply the rules on transport formalities.

• Ensure, if relevant, a secure abd safe traport of goods.
• Apply, if relevant, the rules on summary declarations in accordance with the legislation.

 

 

Warehouse Keeper

• Ensure that while the goods are in a Customs warehouse or in temporary storage, they are not removed from Customs sepervision.
• Fulfil the obligations that arise from the storage of goods covered by the Customs warehousing procedure or by the rules on temporary storage.

• Comply with the particular conditions specified in the authorization for the Customs warehouse or for the temporary storage facility.
• Provide adequate protection of the storage area against external intrusion.
• Provide adequate protection against unauthorised access to, substitution of and tampering with the goods.

 

 

Customs Agent

• Apply the necessary provisions in accordance with the Customs rules specific for the type of representation, for placing the goods under a Customs procedure.
• In case of 'Indirect Representation', responsible for the correctness of the Customs or summary declaration and for its timely lodgement.

 

 

Carrier

• Ensure a secure and safe transport of goods, in particular avoiding unauthorized access to and taampoering with the means of transport and the goods being transported.

• Provide necessary transport documentation.
• Apply the necessary legal formalities in accordance with Customs law.

 

 

Importer

• Responsible, if he has not appointed an 'Indirect Representative' in his dealings with the Customs authorities, for assigning the goods presented to Customs a Customs-approved treatment or use.
• Responsible, if the import declaration is lodged by the importer, for the correctness of the declaration and that it will be lodged in time.

• The importer can be the operator who is lodging the entry summary declaration when the relevant provisions will become aplicable from 1 July 2009 and therefore could be responsible for the correct application of the rules on summary declarations.
• Apply the necessary legal formalities in accordance with Customs rules relevant to the import of goods.
• Ensure a secure and safe receipt of goods, in particular avoiding unauthorized access and tampering with the goods

Taken from 'Authorised Economic Operators - Guidelines'. Read more…