A summary of the AEO scheme, explaining who can be AEO certified and the benefits of AEO status.
Authorised Economic Operator status
One of the options highlighted by the UK government to help reduce the risk of delays at the post-Brexit border is the Authorised Economic Operator (AEO) certification, an ‘internationally recognised quality mark indicating that your role in the international supply chain is secure, and that your customs controls and procedures are efficient and compliant.’
The scheme is available to any company involved in the international supply chain which carries out customs related activities in the EU including manufacturers, exporters and importers. The benefits include simplified customs procedures and the possibility of fast tracking shipments in some cases.
Demand for AEO status has seen the timeframe for approvals increase and recent reports in the press have suggested that it is now taking up to 12 months to gain approval from HMRC.
Although the process involves a lot of work some experts have argued that the rigorous nature of the application process can be beneficial in its own right, helping companies understand their own supply chains and exposure.
The scheme may not be appropriate to every company, particularly where additional procedures (such as veterinary checks) need to be carried out at the border.
Find out more about AEO status
Guidance: Authorised Economic Operator
Guidance from the UK Government which explains the types of AEO authorisation available, one for customs simplification (AEOC) and another for security and safety (AEOS); the criteria for certification and how to apply. Further information is available in HMRC Notice 117: Authorised Economic Operator
Resources on AEO status
Blog post from EEF which argues that AEO status ‘should be high on the boardroom agenda for UK manufacturers, particularly those with 'just in time' supply chains’.
Briefing from EEF, the manufacturers' organisation, which provides an introduction to the AEO scheme and highlights it as a consideration in their checklist for manufacturers.
Briefing which offers a helpful introduction to tariffs and rules of origin, looks at the additional customs administration we might see at the UK border and discusses the option of applying for Authorised Economic Operator (AEO) status. Includes a ‘Considerations for manufacturers’ flowchart which lists areas that manufacturers should audit across their supply chains to help them understand the impact of tariff barriers and non-tariff barriers.
EY highlight six considerations for enterprises impacted by Brexit border changes, including: moving goods in and out of the UK, sourcing locations, operating model suitability, impact on working capital, validity of existing contracts and immediate customs/border issues.
Bob Jones, Director and Brexit Customs & Indirect Tax Lead at KPMG, talks about the government’s proposals for trade and highlights areas that businesses should be exploring, noting that the 'rigour of applying for AEO gives companies a much better understanding of their trade infrastructure and exposure'.
Paper offering five tips for retailers which highlights the difference that a combination of AEO status, simplified procedures and customs warehousing could make to the additional costs for one client post-Brexit.
This chapter explains the operation of VAT and trade tariffs for goods imported into or within the European Union. It includes advice on Authorised Economic Operators (AEOs) and the customs procedures for imports across the various transport methods.