The Authorized Economic Operator (AEO) program is a partnership between Trade community and Customs, in which actors in the global supply chain can apply for AEO status to receive trade facilitation benefits and, at the same time, verify and increase their level of compliance and security.
The AEO concept is a global standard as defined by the World Customs Organization (WCO) SAFE Framework of Standards to Secure and Facilitate Global Trade. More than 70 countries have implemented an AEO program and a significant number of countries are planning or is currently in the process of doing the same. Over 90% of the global trade is anticipated to flow through the AEO program in the near future.
Additionally the AEO concept is one of the foundations of the Trade Facilitation Agreement (TFA) developed by the World Trade Organization (WTO). Once the WTO TFA has been ratified by two-thirds of the member countries, an operational AEO program will be mandatory for all 162 members according to international law.
AEO is a modern and smart control strategy that develops and fosters security and compliance through the move from transaction-based controls to system-based controls. Processes, procedures, systems, competencies and security measures are verified by Customs at the company level.
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