What are the AEO benefits and what is the essence of this program?

What are the AEO benefits and what is the essence of this program?
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The AEO certificate means “Authorized Economic Operator” & AEO benefits are pretty obvious. It is issued to confirm that a certified company is, among other things, a reliable & solvent partner, working in compliance with certain safety standards & relevant legislation with the supply chain security programs.

After obtaining positive results of the inspection by the customs authorities & obtaining confirmation that the applicant meets the requirements for granting this status by AEO shipping, it is granted with a certificate. It has the status of “Authorized subject of economic activity” in all EU countries, which significantly speeds up the process of customs clearance – which is very important for the company, which exports over 70% of its products & expects WCO safe framework.

When sending especially urgent goods, such as, for example, spare parts, or when sending goods to countries having too complicated customs regulations, this certification provides significant advantages.

Authorized economic operator or AEO customs is a participant in foreign economic activity, whose activities have been approved by the federal executive body for control & supervision in the field of customs. They are considered conforming to the norms of the World Customs Organization or the standards of ensuring security & protection of the supply chain.

An AEO authorized economic operator is an established term. It includes, in particular, producers, importers, exporters, various operators & so ones.

Formulation of the problem

For many years now, from the very beginning of the 70s, the customs authorities have paid the utmost attention to ensuring security within the international supply chain & not so long ago, a number of special programs aimed at strengthening the security aspect was created. The concept of AEO is part of these programs & in this connection, in 2005 a separate standard was developed. Since then, participants in trade in certain cases have to make considerable efforts to obtain status, but even when becoming an AEO, the trade organization must constantly support it. At the same time, the customs authorities often do not grant the holders of AEO status any significant benefits in terms of trade facilitation, which, naturally, raises trade costs. Therefore, the introduction of AEO programs on a global scale is rather slow.