What is an Authorised Economic Operator?
AEO certification is a status granted to businesses involved in international trade, signalling that they meet high security and compliance standards.
These standards are set by the World Customs Organisation to promote efficiency in trade across borders. The criteria include customs compliance, record-keeping, financial solvency, and security standards.
Achieving AEO status is voluntary – but the status is recognised globally and open to a wide range of businesses in the international supply chain, such as:
- Manufacturers.
- Importers.
- Exporters.
- Warehouses.
- Distributors.
Types of AEO Certifications
There are 3 types of AEO certification: AEO C, AEO S and AEO F.
These certifications tailor standards depending on the sector and processes involved.
This certification focuses on streamlining customers procedures, for faster application processes and potentially fewer checks on documents and goods. AEO C is ideal for customs agents who do not physically handle goods.
On the other hand, AEO S is the highest standard for safety and security, commonly chosen by logistics providers offering transportation and storage services. This certification can reduce the number of checks on documents and goods, fewer declaration requirements, priority treatment for customs controls, and more.
AEO F combines both AEO C and AEO S, providing a service which meets standards across customs simplifications and security measures.
Benefits of AEO Status for Partners
Working with an AEO certified company can bring benefits both across the customs process and financially for your business.
Customs Benefits
Companies with approved status take advantage of faster clearance processes and priority treatment. Therefore, by working with an AEO certified logistics company, your trade relationships and customs process can be a lot smoother.
A streamlined customs process and quicker clearance can be achieved with fewer physical and documentation checks due to the lower risk score of an approved company.
Companies are also more likely to receive priority treatment during checks, which ensures that goods are processed efficiently, saving time and potentially avoiding delays.
You can also gain access to the UK’s international Mutual Recognition Arrangements (MRAs), removing some non-tariff barriers.
Plus, there are reduced declaration requirements for entry and exit summary declarations.
Financial Benefits
The above advantages can result in financial benefits, including reduced costs and improved cash flow.
By streamlining customs processes, minimising risks of delays, the supply chain becomes more efficient overall – including financially.
AEO in Different Regions
AEO is recognised in more than 70 countries. See how AEO translates around the world:
UK AEO
Post-Brexit, the UK continues to operate its own AEO programme, closely aligned with the EU model. Managed by HMRC, the UK scheme offers two types of certification: Customs Simplifications (AEOC) and Security and Safety (AEOS). These help businesses benefit from faster customs procedures, fewer checks and improved supply chain credibility.
The UK has Mutual Recognition Arrangements (MRAs) with key trading partners including the EU, USA, Japan, China and New Zealand, allowing certified businesses to enjoy smoother trade flows and reciprocal benefits abroad.
AEO certification signals a company’s commitment to compliance and secure trade, making it a valuable asset in international logistics.
European Union AEO
The EU Customs Legislation has established the standards for AEO throughout the European Union, including all 27 member states. AEO standards and procedures in the EU follow those detailed here, with both Customs Simplifications and Security and Safety AEO certifications being recognised.
United States C-TPAT
The Customs-Trade Partnership Against Terrorism (C-TPAT) programme is the US-specific Authorised Economic Operator standard. It follows the same principles and standards as the EU AEO, ensuring international harmonisation for global trade.
Working with an Authorised Economic Operator streamlines international trade in a secure and compliant way. By partnering with an approved logistics company, you can be sure of the integrity and efficiency of your partner and benefit from the many advantages to your own business while trading across borders.
As an AEO certified company, JJX Logistics can provide certified solutions for your European transport.
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