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AEO – does this still exist?

Published on: Published in: Chamber Insights

AEO – does this still exist?

The abbreviation AEO stands for “Authorised Economic Operator.” The AEO is used to determine the reliability and trustworthiness of the economic operator.  It is a status granted to an economic operator based on the partnership between Customs and business.

There are two types of AEO: Authorised Economic Operator Customs Simplification (AEOC) and Authorised Economic Operator Security and Safety (AEOS).  The award is open to businesses that:

  • are a legal entity
  • are established in the UK
  • are actively involved in Customs operations and international trade
  • have an EORI registration number

Companies must make sure they have documented evidence of their business procedures and processes available for Customs inspection before applying. They also need their Government Gateway user ID and password.

Does AEO status help with Customs?

It certainly does offer value to importers and exporters. AEO-accredited freight and transport operators are afforded a ‘light touch’ by HMRC when document queries arise during an export or import transit.  Instead of Customs holding up a shipment they will allow it to proceed on the basis that the query will be resolved within a given period.

Authorised Economic Operators are also given preferential terms by HMRC with regards to the security needed for export and import guarantees for payment of duties, taxes, and VAT.

Additionally, there may also be indirect commercial benefits such as reduced incidences of theft or losses in transit, improved security, and communication with partners in the supply chain, and improved customer confidence.  It can provide a great competitive advantage for the seller of goods or services.

The EU announced that from 1 January 2021 it would no longer recognise AEO accreditations issued by UK Customs. HMRC has therefore adopted its own UK AEO accreditation identical in nearly every respect to EU standards.  Existing UK AEO holders have been issued with new certificates while future successful applicants will receive the UK certificate. The EU and UK mutually recognise each other’s AEO schemes.  

Furthermore, the UK AEO accreditation will enable the company to obtain early approval to comply with the new UK Customs regimes being introduced to control the transit of goods to and from the 27 EU countries. This includes the greater guaranteed levels of AEO status, which will facilitate the movement of goods without Customs border checks.  This of course will contribute to supply chain agility and certainty.

A “decision tree” can be found by clicking here

If you have any questions, please contact Mike Court, International Trade Specialist, International Trade Matters Limited.

t:  +44 (0)7792 406860
e: m.court@internationaltradematters.com  w: www.internationaltradematters.com 

 Article provided by International Trade Matters Limited

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