The 31st of October is the Brexit Day according to the current schedule. Great Britain prepares itself intensively for the hard Brexit, which is leaving the European Union without a deal.
The European Union offers economic operators to obtain the AEO status with numbers of simplifications and facilitations, which will help to mitigate negative Brexit impact on international trade.
Obtaining the Authorized Economic Operator status of customs simplifications (AEO C) and Security and Safety (AEO S) is one of the most effective ways to improve business based on international trade or international transportation.
- 943 applications for AEO was submitted in the EU countries in the 2019 due i.e. to the coming Brexit.
- 17136 AEO holders are in the EU currently.
Who can become AEO?
- Any economic operator established in the customs territory of the Union who is part of the international supply chain and is involved in customs-related operations, may apply for the AEO status, if certain conditions are met in the scope of:
- Compliance with customs legislation and taxation rules and absence of criminal offences related to the economic activity;
- Appropriate record keeping; Financial solvency;
- Proven practical standards of competence or professional qualifications – AEO C only;
- Appropriate security and safety measure – AEO S only.
How long it takes to obtain the AEO authorization?
- from one week to couple of months to prepare the entity for AEO requirements and to prepare the proper application;
- 120 days for Customs Authorities to issue the decision (the period might be extended).
Support of an experienced tax advisor improves the process significantly.
Why it’s worth your effort?
Holding the AEO status cuts of time needed for customs clearance (please find below a list of simplifications improving transportation of goods internationally).
Besides, AEO results with numerous indirect benefits:
- Recognition as a secure and safe business partner;
- Improved relations with Customs and other government authorities;
- Reduced theft and losses;
- Fewer delayed shipments; Improved planning;
- Improved customer service;
- Lower inspection costs of suppliers and increased co-operation etc.
|Easier admittance to customs simplifications||X|
|Fewer physical and document-based controls||X||X|
|Prior notification in case of selection for physical control (related to safety and security)||X|
|Prior notification in case of selection for customs control (related to other customs legislation)||X|
|Priority treatment if selected for control||X||X|
|Possibility to request a specific place for customs controls||X||X|
|Mutual Recognition with third countries, i.e. with USA||X|
If you are interested in the above information and its impact on your business, please contact our experts or your adviser from MDDP.