Authorized Economic Operator

Benefits of being an AEO (Authorized Economic Operator)

Cargo Flores Nov 06, 2024 0 Comment

AEO: Authorized Economic Operator

The AEO acronym, which stands for Authorized Economic Operator, identifies a reliable economic operator that offers reliability and complies with customs regulations. AEO certification facilitates, simplifies and minimizes risks in international trade operations. For exporting and importing companies, it is increasingly essential for their foreign trade operations to be supported by the services of AEO-certified logistics operators.

What is the purpose of the Authorized Economic Operator (AEO)?

The main purpose of the Authorized Economic Operator (AEO) is to guarantee the security of the international logistics chain, especially that of individuals and legal entities directly related to international trade, goods and the environment.

AEO certification entails customs simplifications, safety and security, but also increased customs control to certify the safety of foreign trade operations. The AEO status is recognized in the European Union and associated countries, while in other areas there are similar statuses (e.g. C-TPAT in the USA, or NEEC in Mexico).

Although any economic operator is eligible for AEO status, generally, manufacturing, export and import activities, transportation, forwarding, customs representation, warehousing, stevedoring, shipping line services, cargo consolidation, container handling and transport terminal operations, among the most significant, are considered worthy of such certification.

In Spain, the authorization to become an AEO must be processed before the Customs and Excise Department of the Tax Agency, through which you can access two types of accreditations:

  • Simplifications established in the customs regulations (AEOC).
  • Customs controls related to safety and security (AEOS).

In both cases, the granting of AEO status is based on consideration of aspects such as:

  • Satisfactory record of compliance with customs requirements.
  • Adequate management system: administrative, commercial records and, where appropriate, transport records that facilitate proper customs control.
  • Proven financial solvency.
  • Appropriate level of professional competence or qualifications.
  • Appropriate security levels in own or subcontracted facilities.

Advantages and benefits of AEO status

foreign trade logistics

In accordance with the regulations applied in most countries, the AEO certificate provides the following advantages:

  • Reduction of physical and documentary controls: red circuit (physical inspection) and orange circuit (documentary control) clearances are reduced, whether for exports, imports or re-exports.
  • Priority in physical and documentary controls: greater agility when these types of controls occur.
  • Possibility of choosing the place of the customs inspection: it is possible to carry out the physical inspections requested by the Tax Agency in the AEO’s own facilities or in other facilities with which there is an express agreement.
  • Centralized national clearance: customs representatives can clear incoming goods at any border post and carry out documentary procedures at any other customs office in the Customs Territory of the Union (TAU).
  • Facilities in simplified customs procedures: AEO certified companies (particularly exporting and importing companies) can benefit from certain simplified customs procedures and obtain facilities to access special regimes, such as inward processing (RPA), outward processing (RPP), final destination, temporary import or transit of EU goods.
  • Communication with the customs administration: maintain smooth and agile relations and communications with the customs authorities.

Additionally, by being audited by a tax agency, it offers an image of a solvent and reliable company or professional to the rest of the members of the international supply chain. Submitting to AEO status provides maximum confidence regarding compliance with obligations in terms of guarantees and financial guarantees for operations such as imports, internal or intra-community transits, introductions and stay in bonded warehouses or temporary storage facilities (ADT).

The AEO certification requirement

The requirement for AEO certification is gradually being imposed on companies, which request it from their international suppliers and may even exclude those that do not have it.

States, for their part, are establishing mutual recognition agreements for the certifications granted; they can thus accept the reliability of national and foreign operating companies. All this makes it advisable for companies involved in the international sale and purchase of goods to be accredited by AEO certification.

In this sense, Cargo Flores’ AEO services allow minimizing border controls, which leads to significant savings in time and costs of handling, inspection and transportation in the foreign trade logistics chain.

Legal regulations