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What is AEO?
‘Terrorism is one of the greatest threats to democracy and freedom. The risk of a terrorist attack targeting freight transport remains high. Transport security has become a vital worldwide issue’.
European Commission – February 2006
Governments around the world are increasingly looking at ways to combat terrorist activity and prevent disruption to commerce and industry. The US Customs and Border Protection Agency has introduced legislation on supply chain security to protect the United States from terrorism. This legislation, under the banner of Customs-Trade Partnership against Terrorism (C-TPAT), has gained global recognition and support in industry. Many organisations outside the US have adopted the principles to ensure easier future access to the US market and thus gain or maintain a competitive advantage.
In the EU the concept of an Authorised Economic Operator (AEO) is being introduced, which will award the status of ‘reliable trader’ to organisations that meet the relative criteria.
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How will it affect me?
Companies holding AEO status will benefit from a recognition that they are regarded as "good" international traders.
In short, Authorised Economic Operators should gain a competitive advantage in the marketplace. Organisations complying with US C-TPAT legislation already report business efficiency savings.
The EU legislation covers supply chain safety and security and sets out standards and criteria that need to be met to achieve AEO status. These standards and criteria cover:
1. Self assessment
2. Internal organisation
3. Internal control systems
4. Internal control procedures
5. Certification for safety and security purposes by others
6. Safety and security requirements specific to goods
7. Threat assessment by others
8. Security requirements imposed by others
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What are Bell Davies doing?
Bell Davies are acknowledged as one of the leading players in the UK with regard to the environment surrounding customs declarations. Yet as can be seen from the "standards and criteria" described above, when discussing AEO status a wider level of skills is also needed to embrace the entire supply chain. Accordingly we have entered into an agreement with a number of firms specialising in supply chain analysis to ensure that we can help your business achieve AEO status by meeting the necessary criteria. | |
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What should I do next?
All you need do is ask us to place your operational procedures at a level whereby AEO status is likely to be granted.
We will make recommendations where we identify shortfalls and audit the necessary improvements. Our findings can be presented to HMRC as stemming from an independent expert organisation; if satisfactory they should facilitate, and speed, the granting of AEO status.
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