As a response to international threats as well as ever growing trade lanes the European Commission introduced the concept of 'Authorized Economic Operator' (AEO). This concept is intended to enforce both safety in the supply chain as well as customs compliance within the EU. AEO affects every company that buys, sells, transports in or out of the EU.
The advantages of being an Authorized Economic Operator are:
The AEO concept is based on a standard provided by the World Customs Organization. Throughout the world, customs authorities have comparative standards which are increasingly mutually recognized to ensure a safe and secure trade supply chain from producer to customer.
Digitalization and compliance benefits
The increasing digitalization of compliance and reporting obligations requires businesses to manage and report their global trade activities electronically. Real time self-assessment and control checks are becoming standard. Large players in the industry are starting to require an AEO authorizations from there suppliers to guarantee compliance in the logistical chains having the license can further secure you position towards your clients.
Furthermore, some customs simplifications will only be granted or maintained for companies having an AEO authorization. Certain authorizations which are mandatory for specific business processes are closely related to AEO and may be affected when not being compliant to AEO standards. Customs Authorities continuously re-assess all AEO authorizations issued. This is done in the context of the Union's Customs Code (UCC).
The AEO authorization will continue to be a key authorization for your business, and AEO awareness will remain inevitable in every company involved in Global Trade. We can help you to be prepared for an application or a re-assessment of an AEO authorization.
The AEO Scan is designed to provide insight in your AEO status. This online tool facilitates you in the AEO application as well as the maintenance of the AEO criteria. The AEO Scan is based on the requirements as set forth in the European customs legislation and on the AEO guidelines as published by the European Commission.
Deloitte has years of experience in developing digital customs solutions. Deloitte's Global Trade Advisory specialists in various countries around the world can help you interpret the outcomes of the AEO Scan. We are happy to help you with customs compliance, possible simplifications, efficiency and manage the risks and costs associated with customs and global trade management.
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