AEO CONSULTING

What is Authorized economic operator - AEO?

Authorized Economic Operator is defined as a safe part of the supply chain, involved, within the scope of its business, in activities covered by the customs legislation. For granting the AEO status, certain criteria related to the customs operations carried out within the European Union (EU) shall be met. These criteria are defined directly in the Community customs regulations and they arise from the standards of World customs organization SAFE program.

Who may apply for the AEO autorization?

Authorized Economic Operators may be producers, importers, exporters, freight forwarders, customs brokers, carriers, shippers, brokers, ports, airports, terminals in ports, in airports, terminals of combined transport, operators in international transport, combined transport operators, operators of warehouses, operators of express courier services, distributors, etc. For the purpose of safety and security of the international supply chain all the activities from the processing of the goods destined for export up to the delivery of the goods to another customs territory are included in the process. In case of the European Union this concerns the goods produced outside the customs territory of the European Union, which are imported to this territory or exported outside the European Union. If a company carries out the activity covered by the supply chain, it can apply for the AEO status, regardless of its size. In European Union Member States, the applicants to obtain the AEO status are usually candidates of multinational corporations that have parent companies in European Union Member States.

Reasons why to apply for AEO authorization

After obtaining the AEO certificate the following advantages may be make use of:

easier and faster obtaining of simplified customs procedures by completing the minimal formalities,
• if the holder of an AEO authorization applies for one or more permissions to use the simplified procedures, the customs authorities no longer verify the conditions, that were once examined when granting the AEO authorization,
the possibility of partial/complete waiver of the securing of the customs debt,
reduction of the control rate on consignments of AEO, ie. adequate control rate and priority hearing in the context of the customs proceeding,
by inspection of a consignment covered by an entry or exit summary declaration or declaration lodged by an AEO, the necessary inspections carried out by the customs authorities shall be given priority,
in comparison to other economic operators, the holder of an AEO authorization shall be subject to fewer physical and document inspections (credibility at customs proceeding),
following an AEO request and after an agreement with the relevant customs authority, the inspections may be carried out in a site different than a site of the concerned customs office,
fewer declared data before the import/export, reducing the difficulty of completing the formalities in the customs proceeding,
recognition of the AEO authorization in all EU Member States, which will speed up the transport and manipulation with the goods,
recognition of the AEO authorization in third countries according to the “MRA” agreements (mutual recognition agreements),
quality mark for business partners in the EU and outside the EU (acquired image of a reliable business partner, not only for the customs administrations of the member countries, but also for its traditional and new business partners),
detailed revision and set-up of the logistics and security system of the applicant.

As of 13 April 2018 a total of 22 337 EU companies were holders of an AEO authorization (all types). In Slovakia, 122 companies are holders of an AEO authorization.

Types of AEO authorization

The AEO authorization - Customs simplifications (type C).
This type is required by entities particularly dealing with simplified customs procedures under the customs legislation in their practice.

The AEO authorization - Security and Safety (type S).
This type concerns economic operators requesting to benefit from facilitations in customs inspections related to security and safety by entry of the goods into the customs territory of the EU or when the goods leave the customs territory of the EU.

The AEO certificate – Customs simplifications / Security and Safety (so called TYPE F). Combined authorization is for operators who wish to benefit from the two types already mentioned above.