AEO stands for Authorised Economic Operator and is an internationally recognised quality mark indicating that your role within the international supply chain is secure and your procedures and customs controls are compliant and efficient. The EU implemented the AEO program in 2008 to ensure supply chain security and facilitate legitimate trade. It has since spread worldwide. With that kind of interest, there must be something to it.
Reason #1: Reliable trade partner for your customers
While having AEO status is not compulsory, it gives faster access to certain simplified procedures for customs. It can even get your shipments through safety and security procedures much quicker. This may, in turn, reduce the risk of theft incidences or losses in transit and show your customers, clients, and partners that you take communication and security seriously.
Reason #2: Control of your internal process
The AEO certification process allows you to evaluate and then control your customs and security processes by allowing you to assess risk points, improvements, and opportunities to secure and optimise your customs function.
Reason #3: Gives you a competitive edge
In commercial relations, holding an AEO authorisation facilitates trade with countries that are parties to international agreements recognising the status of reliable AEO operators. Tender processes for new suppliers or service providers include reference to AEO status. Accredited companies do not wish to have non-AEO companies in their supply chain as it may jeopardize their AEO status, or simply create additional regulatory costs.
Reason #4: Become part of the future green lane
Later this year, Dutch customs will differentiate between green, yellow, and blue goods flow depending on the reputation and reliability of the companies involved.
- The green flow: goods from proven reliable companies with an AEO license.
- The yellow flow: goods from safe logistics chains.
- The blue flow: goods flow from companies unknown to the Customs Authority.
Customs enforcement methods and the control pressure imposed on traders will differ per stream, increasing in intensity from green to blue.
Ask an Expert
If you have any questions about getting AEO Certified, if you need support with your application, or if you need support with an AEO audit, contact one of our specialists. They are happy to help and take the load off your mind.