Authorized Economic Operators (AEO)
01/07/22
Indirect Tax Alert, July 2022, Issue 4
Authorized Economic Operators (AEO)
Traders established in the EU customs territory who are engaged in international trade and customs operations may apply for the status of Authorized Economic Operators (AEO). This status demonstrates that the holder is verified by the Customs Authorities according to various criteria (finance, security, storage, production, transport) and can be considered as a safe part of the supply chain and a reliable business partner.
AEO status is valid throughout the EU for an indefinite period and can be granted in any EU Member State. The main aim of AEO is to simplify and streamline international trade.
In Slovakia, AEO status is granted by the Office for Selected Economic Entities – Department of Approval of Economic Entities, based in Zilina. As of May 2022, the Office had received 149 applications and 121 AEOs statuses had been granted. In other EU Member States, the total numbers are in the thousands.
Entities with AEO status are eligible for streamlined access to simplified customs procedures, and benefit from fewer physical and document inspections and fewer shipment inspections. In the event of a customs audit, an entity with AEO status is informed in advance, and has the right to priority treatment and may choose the place of a customs audit. Indirect benefits include better relations with the Customs Authorities and fewer delayed shipments. Customs obligations are simplified and become more predictable. AEO status provides a competitive advantage, as well as benefits related to customs procedures.
Types of AEO status:
- Type C (AEOC) – Customs simplifications, allowing the holder to use simplified customs procedures under customs legislation:
- Easier access to simplified customs procedures, including benefits relating to securing a guarantee waiver;
- Fewer physical and document inspections related to customs legislation;
- Notification of a customs audit, right to priority treatment and option to choose the place of customs audit;
- Competitive advantage in international trade and credibility as regards trading partners.
- Type S (AEOS) – Security and safety area, allowing the holder to use simplifications related to security and safety:
- Fewer physical and document inspections related to security and safety;
- Prior treatment for customs clearance and in the event of a customs audit option to choose the place of an audit of security and safety;
- Notification of the selection of a shipment for a customs control of security and safety;
- Partnership with Customs Authorities and fewer security incidents;
- Better and more transparent communication with Customs Authorities.
- Type F (AEOF) – combination of above statuses (AEOC and AEOS) – entity is entitled to benefits related to customs simplifications as well as Security and Safety.
If you decide to apply for AEO status, we can provide you with all the information you will require, check the readiness of your company and help to identify and eliminate possible deficiencies. We can help you prepare the complete application and its mandatory attachments. We will consult with you on the entire approval process up until final AEO status is granted, including communication and representation before the Customs Authorities. Should you require, we can provide you with consulting services after obtaining AEO status, including regular monitoring of obligations and required compliance in this area and preparation for customs inspections.
