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Greetings!
In this month's edition of 'Anything to Declare?' we look at whether applying for AEO authorisation at present would be advisable for your business or whether it would actually be more beneficial to begin the background process now and hold fire on applying until the optimum moment for your business.
Our other items discuss a recent Tribunal Decision concerning customs documentation not being returned on time, the postponement of the introduction of the Bribery Act and the latest news from the international scene ranging from Anti-Dumping Duties on Chinese and Vietnamese footwear to the decision to delay the vote on granting trade concessions to Pakistani goods following the tragic floods in that country.
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Is this the right time to apply for Authorised Economic Operator (AEO) status? Probably not! |
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We are coming across more and more cross-industry commentators who are advising that businesses seek Authorised Economic Operator (AEO) status as soon as possible. But is this always best advice?
 Whilst we agree with the consensus of opinion that AEO will indeed become the norm rather than the exception we do not think the business case is presently strong enough for most businesses to adopt AEO. In our opinion it is the implementation of the Modernised Customs Code (MCC) that will act as a catalyst for businesses to seek AEO approval because of the tangible benefits AEO will bring once the MCC is implemented.
The Exception to the Rule - Applying for AEO Now!
There are a number of specific cases where there is a compelling business case for applying for AEO now, including:
- Businesses that operate Customs Freight Simplified Procedures (CFSP) where the new rules are so strict that they take you three quarters of the way to AEO authorisation anyway,
- Businesses that fall within the definition of "Senior Accounting Officer" (SAO) Qualifying Companies" which require Finance Executives to have robust and documented customs procedures in place and;
- Freight Forwarders especially if they are working for companies that are CFSP authorised and those that fall within the SAO provisions.
The advantages listed in customs literature such as quicker clearance of goods at port and greater visibility and control, are added benefits to this limited group of companies but hardly justifies the investment required to gain AEO status in their own right.
Read the full article............... |
The next deadline for Importers to make an application for an Autonomous Duty Suspension is March 15th.
For further details about Duty Suspensions
please click here. |
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