The acronym AEO is derived from the English term ‘Authorized Economic Operator’, which denotes an economic operator who is authorized by the customs authorities. Companies holding an AEO certificate are treated by the customs authorities as a reliable trader who benefits from facilitations and simplifications concerning customs procedures as provided for by law (among others, the Union Customs Code and international agreements with Japan, Norway, Switzerland, and from April 30, 2021, with the UK). A holder of Authorized Economic Operator status who is assigned an individual AEO No. is also considered a reliable business partner for other enterprises – the size of the company is irrelevant.
What is the AEO certificate used for?
The primary function of AEO certification is to link companies that are subcontractors or customers of one another in a secure supply chain, thereby minimizing customs risks.
Companies with AEO type S (safety and security) and type F (customs simplification + safety and security) certificates can significantly reduce their operating costs.
Meeting the criteria to obtain an AEOC or AEOF paves the way for rapid (without inspection or audit) authorization to benefit from other facilitations with very tangible financial benefits:
- Use of customs simplifications in the form of entry in the register:
- There is no need to physically present the goods at a customs office;
- Applications from AEO holders are given first priority;
- Abbreviated declarations can be prepared independently;
- Possible deferral of VAT payments in accordance with the provisions of the Tax Code;
- Possible deferral of duty as agreed with the Head of Customs and Taxation, and relevant permit documentation.
- Simplified goods transit permit – if you wish to self-declare the movement of imported goods, e.g. from Gdynia to Warsaw.
- General security (financial security for customs operations) – exemption from the provision of security for transit of goods, customs warehousing and other customs procedures (with the exception of release for free circulation procedure).
- General security for release formalities – possibility to apply for a security waiver of up to 70% of the guaranteed amount.
- 24/7 access to imported goods and shipping outside the EU – increasing the possibilities of the purchase/sale of goods.
Preparation for implementation of the AEO certificate
The costs associated with enabling a company to meet the requirements for obtaining customs facilitation depend on the type of AEO authorization (certificate) sought and the company’s level of preparation. To make the necessary determinations, it is advisable to conduct a so-called zero audit in the company and establish the optimal range of facilitations needed. Some existing solutions in the company can be applied almost immediately, while others require minor modifications, at very small cost. The most costly are new procedures and solutions regarding safety and security (necessary when applying for AEOS or AEOF authorization), i.e. the separation and protection of so-called sensitive areas within the company. This is why it is vital to conduct a preliminary audit and select the right type of AEO certificate – an expensive AEOS or AEOF may not always be necessary.
Within our Customs Academy, we offer a range of specialized training courses on issues including licensing, customs procedures and facilitation, customs risk management, product safety, commodity classification, customs status and origin of goods. In addition, we provide a customs audit service that prepares companies for verification by customs authorities.