Why is AEO Certification from Customs So Important?

Developed in 2011, the Authorized Economic Operator (AEO) program has supported thousands of entities to securely and efficiently facilitate international trade. With nearly 5000 organizations being members of AEO, the program can be said to be a success.

What is Authorized Economic Operator Program?

Based on the World Customs Organisation (WCO) regulations and Customs-to-Business partnerships, AEO is a cross-border program known through different names in different countries. However, the differences end there.

The AEO program was developed to deter international terrorism and the supply of illegal weapons. The organizations that enlist themselves as a member of the AEO, goes through a lot of verification and review process before being awarded the certifications. But, once you’re certified, your trades get priority treatment all over the world even during a selection of physical or customs control.

Reasons to get AEO Certification:

Thousands of entities register themselves for AEO despite its extreme scrutiny and regulations. Here are the 5 reasons to get certified.

1. Faster Processing of Goods:

   On the field level, AEO status gives you the priority treatment to pass through customs as quickly as possible. With AEO status, you’re also subjected to fewer document and physical checks at international borders. Furthermore, you’ll be the first to be reviewed whenever you’re selected for control; thanks to the AEO certification. Customs simplifications are also easier to obtain with an AEO status.

2. Mutual Recognition:

   AEO certifications are internationally recognized. With more than 70 countries being included in the AEO or similar programs, you’ll be one of the most prestigious suppliers worldwide—getting faster checkouts and clearings. AEO-certified entities often enjoy mutual recognition among cross-country business partners and customs. With AEO status, your insurance premiums should be lower than usual.

3. Enhanced reputation:

   Being the standard of security and efficiency, AEO entities enjoy an enhanced reputation in the international business communities. You’ll soon enjoy new business opportunities in new territories thanks to the mutual “approved supplier” framework. With your enhanced reputation, partnering with other international AEO-certified suppliers is easier. As they’re also subjected to AEO regulations, you can source raw materials from them without being concerned about security. 

4. Security of Supply Chain:

   Most consignments are lost in transit due to the delay in the proceedings. With containers sitting at the docks for weeks, malicious individuals get a better shot at moving the goods illegally. On the other hand, as AEO certification ensures that you get priority treatment throughout, it reduces the probability of a stolen or lost container to a great extent. Furthermore, with cheaper premiums, your partners can be sure to get their money back as effectively as possible.

5. Efficiency of Supply Chain:

   A more efficient supply chain guarantees better profits. With lower shipping time and insurance premiums, you’re absolutely guaranteed to enjoy better revenue with each consignment. Moreover, when working with third parties, you can be more certain about the outcomes of the services.

How Can A V International Help?

We offer customs services for entities to get certified for the AEO program. We handle all the necessary regulations and compliance requirements for the AEO certifications for you. Make an appointment with our executives to understand AEO better and get ahead of your competitors.