Customs law: Importance of AEO status – Authorised Economic Operator

21. August 2020

AEO-prosman-pavlovic

We are familiar with the phrase: „Trade knows no borders“.  Traders will do everything in order to make a mutually beneficial trade. However, in international trade, this freedom is undermined by restrictions on the movement of goods across the customs borders and the Authorised Economic Operator (AEO) status can be helpful.

A number of customs formalities and various restrictions can change any business plan. An element capable to eliminate these „borders“ has been introduced in customs legislation in order to improve this situation.

AEO

The status of Authorised Economic Operator  also known as AEO means, that its holder is considered to be excessively reliable and trustworthy, and thereby is eligible for the privileges granted within the customs procedure. Holders of an AEO certificate are subject to more favourable treatment than other economic operators, including fewer physical checks, documentary checks, etc.

Types of authorizations

Customs regulations distinguish two types of authorizations, namely AEO for simplified customs procedures and AEO for security and safety (during customs controls within the customs procedures). Of course, it is possible to dispose of both types of authorizations at the same time.

The importance of the AEO authorization for simplified procedures is reflected in easier obtaining of customs simplifications, where the criteria already checked are not verified again. It is worth mentioning that a comprehensive guarantee for payment of import may be reduced to 30%, 50% or even waived, what has a positive impact on cash flow of every company.

Modern customs regulations even grant the most important customs simplifications only to the holders of an AEO authorization.

We provide for our clients legal services in connection with Authorisation for Economic Operators. If you need any help, do not hesitate to contact us.

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