An Authorised Economic Operator (AEO) is a designation which may be granted by customs authorities to economic operators established in the customs territory of the European Union, who are part of the international supply chain, involved in customs-related operations and who have met certain standards of security and compliance.
There are two types of authorisations that an economic operator may apply for:
Authorised Economic Operator Customs Simplification (AEOC), and
Authorised Economic Operator Security and Safety (AEOS).
It is also possible for an economic operator to hold both authorisations at the same time (AEOC/S). AEO status is granted by customs authorities once the economic operator meets certain prescribed requirements and criteria.
AEOs are considered, from a customs procedures perspective, to be low-risk and are granted benefits such as expedited clearance, reduced inspections, and easier access to simplified customs procedures. The AEO program is designed to enhance international supply chain security and facilitate legitimate trade.
The benefits of becoming an AEO include easier admittance to customs simplifications, improved supply chain efficiency, reduced costs, and improved security. AEOs are able to clear goods faster and with fewer inspections, which can reduce delays and increase predictability in the supply chain. Additionally, AEOs are considered to be lower risk and are therefore less likely to be targeted for inspections or audits. This can save time and money for the economic operator and is particularly relevant at a time of increased international transportation costs.
Additionally, AEO status facilitates trade by giving the economic operator access to the AEO Mutual Recognition Arrangements (MRA) and other trade facilitation agreements. This can help economic operators expand their business and increase their competitiveness in the global marketplace.
Economic operators who are granted the AEO status are also granted the right to use the AEO logo. This should also serve as a boost to their reputation and trust with their trade partners, customers and other stakeholders.
If your business is involved in transactions in goods with non-EU countries, then you may wish to consider undertaking a process to achieve AEO status. Our team can help you with this by outlining the criteria that your business will need to satisfy and by assisting you through the process.