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Once the application is ready, the second step starts when the applicant submits its application
with all the supporting documents (namely compliance program as it was presented above,
self-check sheet, corporate registration certificate and all other relevant documents).
Third, the application is examined in order to check whether the applicant satisfies all the
criteria required. If it is accepted, the Customs Authorities head to an on-site inspection to
confirm the security measures (locking devices, facilities, cargo segregation, lighting, access
control, automation and all other components of the aforementioned compliance program).
Finally, the applicant is approved to become an AEO by the Director-General of Regional
Customs. Along with the annual internal audit, the AEO is subject to a post-authorization audit
by Customs where the latter conducts on-site interviews, reviews the internal audit and checks
all the facilities. If a problem is identified, the Customs Authorities give an “Administrative
order for improvements”. When not implemented, the status of AEO is revoked.
After presenting the whole process of authorization, two steps do matter in the
implementation of the AEO. First, the prior consultation with Customs is crucial as it helps
potential AEOs fulfill the requirements and comply with various criteria determined by the
Japanese Customs. This makes the procedure much quicker as, on average, this process takes
up to 6 months in different countries, while it takes only 1-2 months due to voluntary
consultation and preparation prior to application. Second, the audit process is crucial in
maintaining the quality of AEOs in terms of infrastructure, compliance and facilities.
Benefits of the AEO Program
According to the Japanese Customs, benefits depend on the type of the operator. However, the
benefits can generally be summarized into two main categories: increased reputation as a
compliant and security-oriented company, and a preferential treatment within Customs.
Furthermore, the following are the benefits for different types of AEOs:
 For AEO importers and AEO exporters: Their benefits are mostly compliance-related
reduced examinations and inspections. Additionally, while AEO importers are granted a
“pre-arrival lodgment of import declaration and permission”, “release of cargo before
duty/tax payment declaration” and “periodical lodgment of duty/tax payment
declaration”, AEO exporters benefit from a waiver in the obligation to deposit cargo into
the Customs area before export permission.
 For AEO warehouse operators: They have the ability to launch additional new bonded
warehouses by just informing it to Customs compared to non-AEO warehouse operators
that must obtain a permission to do so. Furthermore, Customs conducts compliance-
related reduced audits of warehouses, making the task easier and quicker. Finally, AEO
warehouse operators do not pay the monthly fee for keeping Customs warehouses.
 For the AEO logistics operators: The procedures for Customs transit are more simplified for
forwarders, shipping companies, airlines and transportation companies. For instance, for
every Customs transit, AEO carriers and forwarders are not obliged to get permission
leading to less uncertainty and more effectiveness in dealing with transit time.
 For AEO Customs brokers: Goods are released before duty/tax payment declaration and
duty/tax payment in case a non-AEO importer delegates its import clearance to an AEO
Customs broker. Similarly, if a non-AEO exporter delegates its export clearance to an AEO