EU launches Supply Chain Security program
On July 1, 2007, all 27 Members of the EU will be accepting applications for the accreditation program entitled Authorised Economic Operator (AEO). The AEO certificate is available to any EU-based economic operator whose activities are covered by customs legislation: manufacturers, exporters, forwarders, customs agents, carriers and importers are all eligible. Applications for AEO status will be handled by the customs authority of the applicant’s country (i.e. British importers will apply to British Customs authorities, Dutch forwarders will apply to Dutch authorities, etc.).
There are three different types of AEO certificates available: AEO-Customs Simplifications, AEO-Security and Safety or a combination of both (simplifications/security and safety). Depending on the company’s operations, the applicants will select the level of AEO certification they wish to obtain (i.e. importers apply as importers, forwarders apply as forwarders).
This supply chain compliance program encourages companies to increase their security standards in exchange for customs-based incentives. The benefits of obtaining an AEO certificate include the following: fewer physical and document based controls, less data for pre-arrival/departure information and priority treatment at ports of entry. These security standards are closely aligned with the International Organization of Standardization’s (ISO) published manuals, ISO/PAS 28001 and ISO 9001. The goal of these standards is to establish adequate levels of security within the areas of the international supply chain which the company controls. Physical security, logistical processes, storage and loading of goods and personal security are some of the areas addressed by these standards.
Approval for AEO status will be based on each company’s previous record of compliance with customs requirements, accounting and logistical system, financial solvency and security and safety requirements. Although applications are currently accepted as of July 1st, the AEO program will officially commence on January 1, 2008. Customs Administrations will have 120 days from the date of receipt to process applications. However, during a transitional period of 24 months starting from 1 January 2008 the period for processing applications will be extended to 300 days.
For more information, contact Nick Allen at nallen@intlcompliance.com. (content researched and contributed by Andrew Hurley).
