According to the World Customs Organization (WCO), an Authorized Economic Operator (AEO) is defined as an organization or company involved in the international movement of goods in whatever function that has been certified by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards.
The objective of the AEO program is to enhance compliance and security through recognizing reliable and secure operators and encourage best practice at all levels in the international supply chain.
The below criteria must be met in order to apply for joining the AEO Program:
- Legal Entity involved in Customs Activities
- Part of Global Supply Chain
- Conducts business in UAE
- Has Customs Business Code
- One Application for Entirety of each legal entity
- No financial or other formal thresholds
- No convictions in court for a serious criminal offence
There is no fee involved in participation. However, businesses may need to invest for necessary improvements at their end in order to comply with the program requirements.
AEO is a voluntary program. Applying for AEO status is a decision taken by operators to leverage the benefits offered by the AEO program to improve their business
The AEO status issued will be valid for 3 years. Operators need to renew their AEO status by going through a re-validation process.
Yes, the AEO certification can be revoked in case of non-compliance with the stipulated rules. Such companies will not be able to join the AEO Program for two years.
A mutual recognition agreement (MRA) is an international agreement by which two or more countries agree to recognize one another’s AEO program and provide reciprocal or comparable benefits to AEO certified companies.
Each party agrees to treat AEO operators authorized under the other customs authority’s program in a manner comparable to the way it treats AEO operators in its own program, to the extent practicable and possible.
There will be no impact to non-AEO companies, except that they would not be able to enjoy the premier benefit package offered by the AEO program.
AEO is an internationally recognized certification that provides a competitive edge to companies through commitment to secure and compliant global trade.
AEO accreditation demonstrates that a company is safe and reliable to do business with, strengthening their market position over their competition.
