An Authorised Economic Operator (AEO) is a mark of quality attached to businesses that are involved in the international supply chain. It’s a programme that is applied to importers, exporters, logistics operators, and customs agents. If a company has AEO status you can trust them to have customer procedures that are secure, efficient, and compliant with all necessary regulation. Emerald Freight has AEO status, so we know what we are talking about when it comes to logistics and freight forwarding.

What is an AEO?

AEO is a status that is granted to companies that work within the logistics chain. It is a mark of quality and shows that the company in question has demonstrated compliance with international security standards and all necessary regulatory requirements. AEO certification is part of the Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) of the World Customs Organization (WCO). The wider framework is designed to boost security in international trade and maintain high standards of operational efficiency throughout global supply chains.

Different Levels of AEO Certification

As part of customs clearance regulations, the AEO certification is issued after an application by the company that requires it. The Customs Authority implements specific checks and controls to ensure that the company complies with all regulations and obligations in areas of accounting, financial solvency, safety standards, and all customs regulations.

There are two types of AEO certification that you can apply for.

AEO-C

This is certification aimed at customs procedures and is used by customs agents who are not in physical possession of the goods being shipped. It lowers the instances of physical checks and documentation checks, amongst other benefits.

AEO-S

This is certification that is aimed at safety and security. Auditors will look at both the internal security of the company applying for certification and any third parties. AEO-S is mostly used by logistics providers offering storage and transportation services.

AEO-Full

The most extensive AEO certification, this is a combination of both AEO-C and AEO-S.

Benefits of being an AEO-certified company

What are the benefits of being an AEO-certified logistics company?

  • A faster and more streamlined customs clearance process
  • Fewer physical checks on documents and goods
  • Priority in situations where inspection is required
  • Greater trust and credibility with authorities
  • Enhanced brand and industry recognition
  • Reduced operational costs
  • Access to mutual recognition agreements in some foreign markets

How to obtain AEO certification?

The process of obtaining AEO certification varies from country to country, but the following steps are generally followed:

  • An internal assessment reviewing company procedures to comply with customs security and regulatory requirements
  • Submission of the AEO application to the relevant customs authority
  • AEO certification is granted if all necessary measures are met
  • There are regular reviews and updates to compliance to ensure continues AEO status

Preparations Before Applying for AEO certification

To ensure a smooth application process for AEO certification there are a few things that you can do as a company in advance. There are minimum requirements that must be met to be granted AEO status, which include:

  • Customs compliance
  • Tax compliance
  • No economic offences
  • Financial solvency or a financial guarantor

Before you apply, make sure you know which AEO certification you require, sort out an EORI (Economic Operators Registration and Identification) number, and make sure all departments within your company are aligned, including finance, IT, operations, customers, and any external partners.