Authorised Economic Operator

AEO is an accreditation scheme for businesses that can prove themselves to be trusted and compliant members of the international supply chain and therefore entitled to certain benefits. AEO is likely to become an internationally recognised quality mark for legitimate business. Applications are voluntary and in the UK HMRC are responsible for approving AEO applications these have been accepted since 1 July 2007. AEO status took effect throughout the EU on 1 January 2008.

Currently most of the benefits AEOs may obtain are commercial and many businesses that are applying are doing so because they:

wish to lead the field in compliance,
deal with goods moving to the USA, for which AEO will become the required standard, or
do not want to be at a commercial disadvantage if their competitors become accredited.

However further benefits of AEO status include :

Fewer physical and documentary examinations.
Fast tracking of consignments through customs controls.
If selected, priority examination and clearance of goods.
Access to simplifications such as guarantee waivers, centralised clearance and single community authorisations, when the modernised Customs Code is agreed.
Easier access to simplifications in other Member States due to the recognition of AEO status across the EU.
Reduction in losses due to theft or damage,
Enhanced customer relationships due to improvements in on time deliveries.
Improvements in inventory management and reduction in stock levels.
Improved process compliance.
Reduced insurance premiums.

SKS’ directors took part in a pilot with HMRC and clients in April 2007 and are currently assisting a number of companies through the AEO application process. We are one of a small number of advisers that can claim to have practical knowledge of the AEO accreditation process. Not only do we deal with the customs aspects but can also provide assistance in all of the required elements of the application.

To discuss how AEO may impact your business, please contact us