How to Become an Authorized Economic Operator?

The concept of an Authorized Economic Operator (AEO) is based on a partnership between customs organs and companies that was implemented by the World Customs Organization. The business entities which voluntarily meet a wide range of criteria cooperate closely with customs organs in order to realize a common goal – supply chain security.

– In order for this to function in practice, what’s needed is a mutual trust, transparency, honesty – attorney Sinisa Pjescic writes for “Logistika i transport”.

The Republic of Serbia introduced the concept of an AEO with the Customs Law, adopted in 2010, and the reception of requests for the approval of this status began on September 1, 2014.

The program, which aims to improve the security of the international supply chain and facilitate legal trade, is open for all participants in the supply chain. It covers business entities authorized for customs simplifications, safety and security or a combination thereof.

In line with the Customs Law, the status of an AEO consists of different kinds of authorizations – AEO for customs simplification and AEO for security and safety.

– Each kind of authorization entails various benefits – Pjescic clarifies.

Based on the Customs Law, the AEO status can be given to any business entity that meets the following common criteria:

– harmonization with the customs legislation and tax regulations, including the non-existence of serious infringements related to the business activities of the applicant;
– proven high level of control of own activities and flow of goods through a satisfactory running of business records and, as per need, records of the transport of goods, enabling the matching customs control procedures, proven financial liquidity, and depending on the kind of the AEO status;
– the existence of practical standards for being capable or expert qualifications directly related to the activities that are carried out;
– the existence of adequate standards of security and safety.

– The Customs Law features the conditions that your company needs to meet in order for you to become an AEO, so the best course of action is to strictly adhere to that. The law proscribes in detail the rights and obligations of the subjects depending on the form of the AEO they have – notes Sinisa Pjescic.

Benefits for an AEO

– Easier access to customs simplifications: a benefit for a business entity authorized for customs simplifications.

– Prior notice: This benefit provides the beneficiary of the AEO status with a logistics advantage, because it can plan more efficiently and adequately optimize the transport and logistics and pare down logistics delays to a minimum, while reducing transportation costs: fewer physical and document-related checks, prioritizing shipments selected for control, choosing the control point.

– Indirect benefits: Recognition as a safe and secure business partner, improved cooperation with the customs organs and other state organs.

– All these benefits given to Authorized Economic Operators result in fewer thefts and losses, fewer late shipments, better planning, better client service, increased client loyalty, improved stock management, increased employee dedication, fewer safety and security incidents, lower inspection costs for the supplier and improved cooperation, greater security and improved communication between the partners in the supply chain – emphasizes Pjescic.

World Customs Organization

Siniša Pješčić

Authorized Economic Operator

AEO

how to become an authorized economic operator

Customs Law

AEO for customs simplification

AEO for security and safety

AEO status