An Authorized Economic Operator (AEO) designation allows for easier movement of goods across borders while maintaining security. AEOs are screened for compliance with customs requirements and supply chain security measures. The goal is to expedite shipping and eliminate unnecessary checks and inspections. AEOs have priority in clearing customs, even during times of heightened terrorism threats.
An Authorized Economic Operator is a designation provided by the World Customs Organization (WCO). This designation allows an exporter or importer of goods or commodities to facilitate the movement of those goods across national borders. The purpose of the authorization is to facilitate international cooperation in making supply chains safer from the threat of terrorism. A supply chain consists of all the entities involved in a series of economic transactions required for a manufacturing operation.
Customs officials within each country inspect incoming and outgoing goods to ensure compliance with laws and payment of customs fees. The prevention of human trafficking and potential acts of terrorism is the responsibility of border control officials. In an effort to streamline the process while maintaining an adequate level of security, a courier can apply to the WCO for an Authorized Economic Operator designation. As part of the application process, the shipper will go through a vigorous verification process which investigates how the shipper has complied with regulations regarding the import and export of goods. The goal of this review is to expedite shipping and eliminate unnecessary checks and inspections, while maintaining secure borders.
A wide range of commodities from raw materials to finished products are imported or exported across national borders every day. These raw materials comprise, in total, an extensive global supply chain that powers manufacturing processes around the world. Finished products shipped across borders allow for greater product diversity in markets around the world.
These chains are not formal organizations. They are fluid groups that come together for a shipping purpose and then dispense as new players enter the process. It’s an informal arrangement. An Authorized Economic Operator has been screened to ascertain whether the operator has a stellar record of complying with customs requirements. Other things considered in the verification process are how adequately the applicant has secured a supply chain against unauthorized activity, whether the operator has thoroughly investigated the background of its employees, and what kind of ongoing training programs are in place to prevent illegal acts.
A corollary for an Authorized Economic Operator is found in the screening procedures for frequent travelers at airports. Frequent flyers can apply to be approved for faster processing through security screening procedures, by adhering to an applicant’s personal background investigation. It is the same concept when granting an Authorized Economic Operator the ability to expedite shipping across borders. Once the operator is approved, they will have priority in clearing customs, even in times of heightened terrorism threats.
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