Trusted Trader. Definition, benefits & how to become one
Customs authorities can grant accredited businesses the title of trusted trader, which comes with several advantages. In this article, you will learn what a trusted trader is, its benefits, and how businesses can achieve this status.
What is a trusted trader?
A trusted trader is a business that is an accredited member of an Authorized Economic Operator (AEO) program. A trusted trader is therefore also called an authorized economic operator. The World Customs Organization gives the following definition for an authorized economic operator.
“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”
Read our article about Authorized Economic Operator for more information about AEO programs.
Benefits trusted trader
Being a trusted trader has several advantages for businesses. These often consist of:
- Lower examination rates at borders.
- Priority procedures of goods at the border. Trusted traders often benefit from faster customs processing.
- Access to training programs and events.
The specific benefits vary based on the AEO program that the business is a member of.
How to become a trusted trader
Businesses that wish to become trusted traders must apply to the AEO program of their national customs authority. Some AEO programs also allow foreign businesses to apply if they conduct business within the country’s AEO program.
Many AEO programs have mutual recognition arrangements (MRAs) with other AEO programs. These arrangements involve customs authorities recognizing each other’s trusted traders. As a result, they benefit from trusted trader advantages in other countries as well.
AEO programs
Below is a list of various AEO programs. You can find more information about the AEO program by following the link.
- CTPAT (US)
- Partners in Protection (Canada)
- AEO program EU
- Australian Trusted Trader
- Secure Exports Schema (New Zealand)
- AEO program Japan
- AEO program South Korea
- AEO program Singapore
- AEO program Mexico
- AEO program Israel
- AEO program Hong Kong
About Hoefon Security Seals
Many AEO programs mandate the use of ISO 17712 high security seals for international freight transports. Hoefon Security Seals is a certified supplier of high security bolt and cable seals. Therse are accepted by customs all around the world. We also offer cargo locks and damage indicators for protecting and monitoring your transports.
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.
