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The TFA Article VII defines authorized operators (AOs) as entities complying with the WTO
member’s Customs laws, regulations, or procedures. While WTO’s AO programs emphasize
trade compliance and may include supply chain security as well, SAFE AEO programs must
always meet the standards for supply chain security. The TFA and SAFE Frameworks are not
substitutes as stated in WCO (2018): “The WCO strongly supports the implementation of an
AEO programme and welcomes the growing number of countries implementing AEO as well as
various Customs compliance programmes and the Authorised Operator scheme under the
WTO Agreement on Trade Facilitation (TFA) as a first step towards the implementation of a
full-fleged AEO programme.”
1.2. Authorized Economic Operator Design and Implementation Process
As explained in the previous section, business co-operation ( Customs-to-Business) is one of the
main pillars of the SAFE Framework which methodically established the requirements to
become an AEO. The core aspects of the AEO design and implementation, exactly as stated in
the WCO SAFE Framework 2015, are as follows:
1. “Demonstrated Compliance with Customs Requirements: Customs shall take into
account the demonstrated compliance history of a prospective AEO when considering
the request for AEO status.”
2. “Satisfactory System for Management of Commercial Records: The AEO shall maintain
timely, accurate, complete and verifiable records relating to import and export.
Maintenance of verifiable commercial records is an essential element in the security of
the international trade supply chain.”
3. “Financial Viability: Financial viability of the AEO is an important indicator of an ability
to maintain and improve upon measures to secure the supply chain.”
4. “Consultation, Co-operation and Communication: Customs, other competent authorities
and the AEO, at all levels, international, national and local, should consult regularly on
matters of mutual interest, including supply chain security and facilitation measures,
in a manner which will not jeopardize enforcement activities. The results of this
consultation should contribute to Customs development and maintenance of its risk
management strategy.”
5. “Education, Training and Awareness: Customs and AEOs shall develop mechanisms for
the education and training of personnel regarding security policies, recognition of
deviations from those policies and understanding what actions must be taken in
response to security lapses.”
6. “Information Exchange, Access and Confidentiality: Customs and AEOs, as part of an
overall comprehensive strategy to secure sensitive information, shall develop or
enhance the means by which entrusted information is protected against misuse and
unauthorized alteration.”
7. “Cargo Security: Customs and AEOs shall establish and/or bolster measures to ensure
that the integrity of cargo is maintained and that access controls are at the highest
appropriate level, as well as establishing routine procedures that contribute to the
security of cargo.”