Authorised Economic Operator Status
Authorised Economic Operator (AEO) is an internationally recognised standard which shows a business's role in the supply chain is secure and has customs controls in place that are compliant and efficient. AEO is a ‘trusted trader’ status.
In the UK, AEO has been around since 2008 and many businesses have obtained the certification from H.M. Revenue & Customs (HMRC). AEO is now the standard expected by HMRC when reviewing customs compliance for a UK importer or exporter.
There are 2 types of status:
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Authorised Economic Operator Customs Simplification (AEOC)
This status is issued to businesses that fulfil the criteria of customs compliance, appropriate record keeping standards and financial solvency.
Authorised Economic Operator Security and Safety (AEOS)
AEOS focuses on supply chain security measures and the control and access of the goods. It requires the business to have robust processes in place to ensure the safe storage, handling and distribution of the goods whilst under the company’s control. This includes documented procedures for many areas of the company, such as purchasing, sales, logistics, HR and security.
With AEO, you can decide which certification will be most beneficial. It could be that AEOS, with its security controls, provides a means to generate new business. You can therefore apply for customs simplification or security and safety, or you can apply for both.
The application process for AEO involves a ‘deep dive’ into the company’s processes focusing on customs and shipping procedures, finances, HR and safety and security. It is a key requirement to have satisfactory processes in place to enable HMRC to test and scrutinise the controls to ensure the business meets the minimum standards required under AEO. This is where investment, both in developing/recording processes or ensuring security measures are sufficient, is required otherwise AEO status will not be granted by HMRC.
Our customs experts have many years of experience within HMRC, processing AEO applications and with external business preparing applications. We can advise whether this regime offers a tangible benefit to your business and will support you through the application and ensure that processes and policies are in place to secure and maintain this status.
