Authorized Economic Operator (AEO). The complete guide
The term authorized economic operator (AEO) is a globally used term for organizations which are authorized by a national customs organization to perform international transports. In this blogpost will we elaborate on this subject and discuss various AEO programs around the world.
What is an authorized economic operator (AEO)
The World Customs Organization (WCO) defines an authorized economic operator as follows:
“a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards. Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors”
Customs authorities stimulate organizations to follow AEO programs or to obtain an AEO certification for the following reasons.
- Facilitating and stimulating international trade by imposing internationally recognized standards. Thanks to AEO programs businesses can achieve time savings and better planning.
- Collecting customs duties.
- Reducing security threats. AEO programs impose the application of several safety measures. These increase border security and reduce the risks of the transports containing unwanted goods or persons.
The World Customs Organization created the WCO Framework of Standards to Secure and Facilitate global trade (SAFE). With SAFE the WCO aims to harmonize customs operations and customs to business partnerships.
Developing an Authorized Economic Operator program is an important part of SAFE. It also sets out a range of standards to guide International Customs Administrations. Many customs authorities have incorporated SAFE in their own AEO programs. Underneath we list various of these programs. Thanks to Mutual Recognition Arrangements (MRAs) some of the following programs recognize each other and each other’s trusted traders.
AEO program U.S.: CTPAT
The Customs Trade Partnership Against Terrorism (CTPAT) was started by U.S. Customs and Border Protection in 2011. Its aim is to strengthen international supply chains and improve border security. CTPAT is a voluntary program that include the following benefits: shorter waiting times at the border, reduced number of CBP examinations, front the of the line inspections. Through MRAs CTPAT is mutually recognized with the AEO programs of Canada and Mexico.
Also read out article about CTPAT.
AEO program Canada: PIP
Partners in Protection (PIP) is a voluntary program for organizations involved in transporting goods to Canada. It was launched in 1995. PIP also offer shorter waiting times and a lower examination rate at the border.
AEO program Mexico
The Mexican border authority introduced in 2012 a voluntary program simply called Authorized Economic Operator. It aims the implementation of internationally recognized minimum security standards. The program offers various benefits which you can find here.
AEO program EU
The European Union established its AEO program based on internationally recognized standards in 2008. The EU has implemented mutual recognition of AEO programs with, among others, the US, United Kingdom, China, Japan, Switzerland and Norway. EU businesses that would like to apply for this AEO program should submit their application to their individual customs authority.
AEO program Australia: Australian Trusted Trader (ATT)
The Australian Trusted Trader (ATT) program reduces red tape at the Australian border, improves certainty in export markets and expedites the transport of cargo in and out Australia. Membership of the ATT program is free to Australian businesses that meet various security and financial criteria.
About Hoefon Security Seals
Hoefon Security Seals is a certified manufacturer of high security seals. In most of the AEO programs the application of ISO 17712 certified high security seals is obliged for international freight transport. We offer high security bolt and cable seals. These seals offer a very high breaking strength and cannot be removed by hand. Please feel free to contact us for questions or more information.
Niels Pas
CEO Hoefon Security Seals
Niels Pas has been Hoefon Security Seals’ CEO since 2017. He has extensive international experience and speaks 4 languages professionally.
