The Privileged Entrepreneur, or AEO in Supply Chains – Part 1
In this part of the article, we publish answers to questions provided by the press spokesperson for the Customs Chamber in Poznań, Mr. Cezary Kosman, regarding the institution of the “Authorised Economic Operator” (AEO).
Iwo Nowak: Which business entities should be particularly interested in obtaining an AEO certificate?
Cezary Kosman: Legal regulations allow for the granting of three types of AEO certificates: AEOS – safety and security, AEOC – customs simplifications, and AEOM – customs simplifications and safety and security. It can therefore be assumed that AEO regulations are addressed to both small companies and large ones employing several hundred (or several thousand) employees. This position was explicitly expressed by the European Commission. Furthermore, it must be remembered that only those entrepreneurs who utilize institutions provided for in customs law can apply for AEO status. It seems that, in the first instance, entrepreneurs who regularly export/import goods or provide services in this area (freight forwarders, logistics companies, transport companies, customs agencies), as well as those who hold permits to use simplified procedures, should apply for AEO status.
I.N.: To fully benefit from the certificate’s facilities, should all companies in the supply chain (e.g., manufacturer + freight forwarder) possess AEO status?
C.K.: The international supply chain covers a process (“from beginning to end”) – from the production of goods to their delivery to final recipients, including the import and export of these goods. One of the reasons for the changes to the Community Customs Code was the fact that, in order to secure the international supply chain, customs administration should focus not only on cargo entering its territory and its control, but also on the entire supply chain from the manufacturer, through the exporter, carrier, freight forwarder, customs agent (representative), to the importer. Therefore, the ideal solution would be for as many entities in a given supply chain as possible to hold AEO status or its equivalent (in a non-EU country). Nevertheless, bearing in mind that the status of an authorised economic operator will be granted individually to a given business entity, the fact that other entities participating in the supply chain will not possess this privilege does not mean that the person who receives the certificate will not be able to use it.
I.N.: From a practical perspective, what will the AEO requirements audit conducted by customs services look like?
C.K.: Checking the fulfillment of conditions and criteria necessary for granting an AEO certificate is carried out based on the provisions of: Council Regulation (EEC) No 2913/92 establishing the Community Customs Code; Commission Regulation (EC) No 1875/2006, hereinafter referred to as the RWKC; the Customs Law Act (Journal of Laws of 2004, No. 68, item 622, as amended); Part IV of the Tax Ordinance Act (consolidated text, Journal of Laws of 2005, No. 8, item 60, as amended); Chapter 1b of the Customs Service Act (consolidated text, Journal of Laws of 2004, No. 156, item 1641, as amended); and the Freedom of Economic Activity Act (consolidated text, Journal of Laws of 2007, No. 155, item 1095, as amended). After receiving an application for an AEO certificate and verifying it and the attached documents for formal compliance, the authority competent to issue the certificate submits a request to the authority competent to conduct customs control to perform verification activities regarding the fulfillment of conditions and criteria necessary for granting the AEO certificate. The authority competent to check the conditions and criteria necessary for issuing an AEO certificate is the director of the customs chamber competent for conducting customs control based on the applicant’s registered office. Activities carried out by the authority competent to conduct customs control, due to their form and mode of implementation, are divided into:
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those undertaken in the mode and on the principles specified in the Customs Law and Tax Ordinance acts, in connection with ongoing customs proceedings
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those undertaken in the mode and on the principles specified in the Customs Service Act, in connection with customs control conducted at the entrepreneur’s premises.
The article comes from the magazine “Logistyka” 3/2008.