AEO – What’s that then??
This is a question I am asked regularly by my Customers when I am working with them to deliver training on various global logistics subjects. Then I reminded myself that HMRC don’t always communicate brilliantly and unless you are working for a huge Multinational Corporation, you may not have a Compliance or Customs team who are focused on the Notices released by Customs or the updated Union Customs Code (UCC.*).
So, what is AEO and is it something your company should be considering?
An AEO (Authorised Economic Operator) is a company operating within the EC, who have demonstrated they are compliant with certain customs criteria and as such are considered as reliable in their customs related operations.
AEO is not mandatory and is not a legal requirement, but being AEO certified demonstrates to both HMRC and commercially to your Customers or Suppliers that you have a high level of compliance and that your supply chain is secure.
If you are doing business with the USA, who operate C-TPAT** or internationally, where there is development of the Safe Framework of Standards in the World Customs Organisation (WCO***). Then holding the AEO Kite Mark (only available with a certain level of AEO certification) can offer you commercial advantage and credibility.
For those of you who like to see statistics, this is the AEO tally, updated by HMRC in April 2015.
EU Figures
Applications
Certificates
Germany
7,379
6,304
Netherlands
2,073
1,442
France
1,491
1,172
Italy
1,169
913
Portugal
923
746
Spain
814
623
United Kingdom
622
366
Sweden
585
321
TOTAL
17,604 Applications
13,850 Certificates
UK Figures
Certificates
AEOC
56
AEOS
10
AEOF
300
These statistics prove my point about how little we are doing about AEO in the UK, it is time to change the trend and take positive action.
If you would like to know more about AEO, understand the different types of certificate and the benefits gained from achieving each of them then please contact me at helenlilley@hltrainingsolutions.co.uk
Helen Lilley – 07917 301598
HL Training Solutions Ltd
‘Leading the way in Logistics Training’
References
*The only firm start date for UCC changes to start is 1 May 2016. However, there may be a staggered introduction of the changes. https://www.gov.uk/introduction-of-the-union-customs-code-ucc
**Customs-Trade Partnership Against Terrorism http://www.cbp.gov/border-security/ports-entry/cargo-security/c-tpat-customs-trade-partnership-against-terrorism
*** World Customs Organisation http://www.wcoomd.org/en.aspx
