An Overview of Authorized Economic Operator Programs
WHAT IS AN AUTHORIZED ECONOMIC OPERATOR?
According to the World Customs Organization (WCO), an Authorized Economic Operator (AEO) is a party involved in the international movement of goods and has been approved by a national customs administration as an entity that complies with national requirements based on WCO supply chain security standards. AEO programs protect supply chains from global threats and are present in countries around the world in various forms. The U.S. AEO program, for example, is called the Customs Trade Partnership Against Terrorism (CTPAT).
WHO IS INVOLVED IN AUTHORIZED ECONOMIC OPERATOR PROGRAMS?
- Customs Authority: Customs authorities evaluate eligible businesses and provide those companies with benefits that speed up customs processes at point of entry.
- Private Sector: Companies agree to comply with a certain set of criteria established by Customs.
HOW ARE AUTHORIZED ECONOMIC OPERATOR PROGRAMS FORMED?
- AEO Programs are developed by customs administrations and align with the WCO SAFE Framework Standards. AEO Programs like CTPAT can be found in other countries, and often Mutual Recognition Agreements/Arrangements (MRA) are formed bilaterally or regionally to simplify global trade networks.
WHAT ARE THE BENEFITS OF BEING AN AUTHORIZED ECONOMIC OPERATOR?
- Authorized Economic Operators are examined at the border less than regular cross-border traders which speeds up processing times.
- By adhering to AEO Standards, companies increase their security posture which reduces the risk of their goods potentially being tampered with.
- As AEO members, companies improve the predictability of events that take place at the border.
- MRAs allow businesses to experience the same benefits outside of their domestic operation, on the condition that they agree to share some company information with the partnered foreign customs administration.
WHERE WE STAND
AEO programs have steadily grown in development and implementation over the course of nearly two decades. CT Strategies has a reputation for delivering realistic solutions on AEO development and operation. Relying on our team’s expertise, we advance ideas that challenge current global norms and create greater efficacy and collaboration between AEO programs worldwide. Read more about facilitating and securing trade in North America