All organisations that trade internationally should consider AEO accreditation. Specifically if you are a Known Consignor or Regulated Agent the application process will utilise existing systems, capitalising on your current investment in security. As a full AEO the business will have an international quality mark and benefit from financial savings on customs deferment guarantees and waivers from mandatory special procedure guarantees (see below).
There are three types of AEO status:
1. Customs Simplification (AEOC)
AEOC is the customs simplification AEO accreditation which enables the holder to benefit from tangible financial saving on customs procedures which include:
- A 70% reduction in the guarantee required by HMRC if you operate a deferment account. A significant tangible benefit that can save an organisation substantial annual cost.
- A partial or full waiver from HMRC mandatory financial guarantees that will come into force in May 2016 for an organisation operating a special customs procedure. The special procedures include inwards & outwards processing relief, end use or operating a bonded warehouse. As an AEOC your organisation will be entitled to full or partial waivers from the requirement to have a guarantee in place.
2. Security and Safety (AEOS)
This is the simplest for Known Consignors & Regulated Agents to apply for as it complements the systems that are already in place. Achieving this status enables the AEOS to benefit from:
- Lower risk score used to determine the frequency of customs physical and documentary checks
- Consignments may be fast-tracked through customs control
- Reduced requirements for the mandatory pre-arrival/pre-departure Entry Summary Declarations (ENS) or Exit Summary Declarations (EXS) which carriers must make
- Potential for future reciprocal arrangements and mutual recognition with countries outside the European Community, for example, USA or trading partners that adopt the World Customs Organisation (WCO) Safe framework
3. Full (AEOF)
The full certificate will enable the business to receive the maximum benefits under the AEO scheme combining the advantages of both the AEOS and AEOC certifications.
In addition by implementing AEO standards across your business it helps:
- Reduce incidents of theft or loss in transit
- Improve security
- Improve communication with partners
- Market the company’s quality status to existing and potential customers