But, did you know that there is more than 1 type of AEO license, depending on how you trade?
In the European Union there are 2 types of AEO licences to apply for:
Customs Simplifications (AEOC)
The Authorised Economic Operator C (AEOC) license is issued to businesses that prove customs compliance, appropriate record keeping, and financial solvency.
The advantages of an AEO C licence are:
- Fewer documentation and physical customs checks
- Priority treatment at border control posts on selected shipments
- On request, customs can carry out their checks at specific locations
- Simplified customs declarations
- More notice on shipments selected for checks
- Lower collateral required against customs guarantees
AEOC is mostly used by customs brokers and traders who do not physically possess the goods, but manage movements and clearances in the supply chain.
Security and Safety (AEOS)
The Authorised Economic Operator S (AEOS) license is issued to businesses that prove customs compliance, appropriate record keeping, financial solvency, and pass safety and security standards.
Compliance in safety and security is increasing worldwide, and so are AEOS growing in relevance in supply chains as a trust mark for employee welfare.
The advantages of an AEO S licence are:
- Fewer physical and document-based controls
- Priority treatment at border control posts on selected shipments
- On request, customs can carry out their checks at specific locations
- More notice on shipments selected for checks
- Recognition of AEO licence by non-EU countries
Another benefit of having an AEOS is that it helps in the facilitation of acquiring other safety and security authorisations.
AEOS is mostly used by traders and logistics providers who physically possess the goods, managing the transportation and storage services.
It is possible to have two licenses (AEOC and AEOS). This is sought after by high-volume traders as a trust mark to show they are performing at a high standard.
Do you have questions on Authorised Economic Operator license types?
If you have questions about which type of Authorised Economic Operator license is best for you, help obtaining an AEO certificate, support with your application, or with an AEO audit, please contact one of our specialists.