The legal basis is contained in European Council Regulation 648/2005 and European Commission Regulation 1875/2006. The AEO programme is primarily a trade facilitation measure. Operators established in the EU, that meet specific qualifying criteria, may apply for and receive AEO certification. The aim of the AEO program is to enhance security through granting recognition to reliable operators and encouraging best practice at all levels in the international supply chain.
The start-up date was the 1st January 2008.
What are the benefits of AEO status?
- AEO's will be recognized worldwide as safe, secure and compliant business partners in international trade;
- AEO's will be given a lower risk score in risk analysis systems when profiling;
- If physical controls are to be conducted AEO's will be given priority treatment;
- Mutual recognition of AEO programs under Joint Customs Co-operation Agreements could result in faster movement of goods through third country borders;
- Reduced data sets for entry and exit summary declarations – only for AEO safety and security ;
- AEO's will be in a stronger position to benefit from simplified procedures.
- AEO's may not be required to provide financial security for some Customs procedures, e.g. Inward Processing or Customs Warehousing.
- AEO's may find it easier to qualify for a transit guarantee waiver as gaining AEO status fulfills some of the conditions required to receive a guarantee waiver.
As a consequence of increasing their safety and security standards, traders may also benefit from the following:
- Reduced theft and losses;
- Fewer delayed shipments;
- Improved planning;
- Improved customer loyalty;
- Reduced security and safety incidents;
- Reduced crime and vandalism;
- Improved security and communication between supply chain partners.