An Authorized Economic Operator (AEO) is a status recognized and granted by the customs authorities of a country to companies that meet certain security and customs compliance criteria. Being an Authorised Economic Operator means that a company has demonstrated its commitment to security and compliance with international customs standards.
The status of Authorized Economic Operator was created within the framework of the Framework of Security Standards of the World Customs Organization (WCO). WCO is an intergovernmental organization that promotes standards and best practices in customs and trade facilitation globally.
Companies that obtain Authorized Economic Operator certification enjoy certain benefits and privileges in international trade operations. These benefits may include:
- Simplified Customs Procedures: AEOs can benefit from simplified customs processes, such as reduced physical and documentary controls at customs, allowing them to expedite the clearance of goods.
- Priority treatment: AEOs may receive priority treatment in customs processes, which means reduced waiting times and increased efficiency in trade operations.
- Access to Secure Trade Programs: AEOs may participate in Secure Trade and Customs Cooperation programs, allowing them to work with customs authorities to identify and prevent security risks.
- International Recognition: AEO status is internationally recognized, which facilitates business operations with trading partners in other countries that also have AEO programs.
However, in order to obtain the status of Authorized Economic Operator, companies must meet a number of requirements and standards established by customs authorities. These requirements may vary from country to country, but typically include such aspects as physical security, supply chain security, customs compliance history, financial solvency and risk management.
In short, being an Authorized Economic Operator means being recognized as a reliable and secure company in terms of customs compliance and security in international trade operations. This status provides benefits and privileges that help to speed up and facilitate cross-border commercial transactions.