Frequently Asked Questions

/Frequently Asked Questions
Frequently Asked Questions 2018-02-14T03:53:16+00:00

What is Authorized Economic Operator (AEO) program? 2016-05-31T08:32:53+00:00

According to the World Customs Organization (WCO), an Authorized Economic Operator (AEO) is defined as an organization or company involved in the international movement of goods in whatever function that has been certified by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards.
The objective of the AEO program is to enhance compliance and security through recognizing reliable and secure operators and encourage best practice at all levels in the international supply chain.

Who will carry out the validation of AEO applications? 2016-05-31T08:38:22+00:00

The validation of AEO applications and associated site validation visits will be carried out by the dedicated AEO Validation team within the Customs Administration.

Who is eligible to apply for AEO Program? 2016-05-31T08:31:08+00:00

The below criteria must be met in order to apply for joining the AEO Program:

  • Legal Entity involved in Customs Activities
  • Part of Global Supply Chain
  • Conducts business in UAE
  • Has Customs Business Code
  • One Application for Entirety of each legal entity
  • No financial or other formal thresholds
  • No convictions in court for a serious criminal offence
Is the AEO validation an audit? 2016-05-31T08:39:00+00:00

The validation of the AEO application will not constitute a regular Customs Audit, but will include a detailed process review and site validation visits to verify eligibility.

How much does it cost to participate in the AEO Program? 2016-05-31T08:28:46+00:00

There is no fee involved in participation. However, businesses may need to invest for necessary improvements at their end in order to comply with the program requirements.

Can AEO applications be withdrawn? 2016-05-31T08:39:11+00:00

Yes, businesses may withdraw their AEO application for any reason at any time during the process especially if they require more time to comply with the criteria for obtaining AEO status. Applications may be resubmitted when the business is ready to do so.

Is AEO participation mandatory for businesses involved in the supply chain? 2016-05-31T08:27:15+00:00

AEO is a voluntary program. Applying for AEO status is a decision taken by operators to leverage the benefits offered by the AEO program to improve their business

What happens if AEO Application is rejected? 2016-05-31T08:39:28+00:00

If a business is found unable to satisfy all the criteria for AEO, Customs will advise the criteria not being met and provide time for the business to adapt their procedures to meet any deficiency. If the business is unable to make the required changes within the specified time limits, a decision will issued to reject the AEO application, explaining the reasons for rejection.

How long will the AEO status be valid for? 2016-05-31T08:24:48+00:00

The AEO status issued will be valid for 3 years. Operators need to renew their AEO status by going through a re-validation process.

Can the AEO certificate be revoked? 2016-05-31T08:24:14+00:00

Yes, the AEO certification can be revoked in case of non-compliance with the stipulated rules. Such companies will not be able to join the AEO Program for two years.

What is Mutual Recognition Agreement (MRA)? 2016-05-31T08:23:26+00:00

A mutual recognition agreement (MRA) is an international agreement by which two or more countries agree to recognize one another’s AEO program and provide reciprocal or comparable benefits to AEO certified companies.
Each party agrees to treat AEO operators authorized under the other customs authority’s program in a manner comparable to the way it treats AEO operators in its own program, to the extent practicable and possible.

What impact will the AEO program have on non-AEO companies? 2016-05-31T08:22:26+00:00

There will be no impact to non-AEO companies, except that they would not be able to enjoy the premier benefit package offered by the AEO program.

Are there any indirect benefits in having AEO status? 2016-05-31T08:21:40+00:00

AEO is an internationally recognized certification that provides a competitive edge to companies through commitment to secure and compliant global trade.
AEO accreditation demonstrates that a company is safe and reliable to do business with, strengthening their market position over their competition.