Friday 5 - AEO

Friday Five

This is the first of our Friday 5 series giving short five-point updates on key subjects in international trade.

What is AEO?

The Authorised Economic Operator (AEO) comes into force on 1^st May 2016.  It is an international standard that businesses can obtain through an audit-based accreditation process.  Importers, exporters, forwarders and carriers are affected.  Those who do not obtain AEO are going to find themselves at a serious disadvantage to their competitors.

1: 70% reduction in a business’s deferment account guarantee

To obtain a credit deferment account you must secure assets or cash against the credit required. A 70% reduction can be obtained for approved operators.

2: Comprehensive guarantees and guarantee waivers

Currently a duty guarantee is not compulsory for all bonded movements in the UK. Under the UCC, any movement of uncleared goods must be guaranteed. A reduction or waiver will allow businesses to only have to guarantee 100% of the potential duty. Those without AEO will have to guarantee 200% of the potential duty. This benefits cash flow for businesses with AEO. A comprehensive guarantee allows for the one declaration to customs to cover all movements of cargo within the Union.

3: Priority treatment

Consignments which have been pulled for examination will be accelerated through the process for businesses with AEO. This trust also extends through fewer physical and document-based checks.

4: Centralised clearance

This is the ability for a company with operations throughout Europe to be able to declare all customs transactions occurring to the customs office of one EU Member State. This will then grant clearance to goods no matter which Member State the cargo entered or exited. This is currently known as SASP (Single Authorisation for a Simplified Procedure). 

5: Choice of inspection location

Cargo can be moved off-quay, under bond, to limit quay rent charges. 

For a copy of our full AEO benefits factsheet request it now via email info@felixstowe-ac.co.uk