Theme 5: Customs organizational structure for AEO programs

There exists an average 75 percent convergence within the OIC

Customs organizational

structure

variable. It appears that the development of AEO programs in OIC happen to involve

consultations with stakeholders.

It is commendable that in OIC AEO programs there is 100 percent convergence in terms of

internal checks/controls along with formal reporting systems. Moreover, there is a high degree

of convergence for a dedicated office for AEO program administration within Customs (88

percent) and AEO programs being open to foreign companies (88 percent). The last one is

particularly important because many OIC members demonstrate willingness and effort to

attract more foreign direct investment to their countries. Being able to grant AEO status to the

subsidiaries of foreign enterprises may play a notable role in appealing multinationals that are

particularly active in global value chains.

There are also sub-variables where there is a very low degree of convergence and requires OIC

members to devise solutions to overcome these difficulties. Firstly, communication with other

government agencies within OIC AEO programs is low (38 percent convergence). This is

notable considering the fact that the WCO SAFE Framework started focusing on other border

agency cooperation recently. Secondly, there is no convergence in terms of new Customs

technical specialty positions established. This is due to the fact that all programs in the survey

respondents’ group were established using the existing human resources of the Customs

(Figure 3.16).

Figure 3.16. Customs organizational structure for AEO programs

Source: Authors’ compilation using survey data.

88%

100%

63%

38%

100%

75%

88%

0% 20% 40% 60% 80% 100%

Dedicated Office for AEO Program Administration

Internal Checks/Controls

Formal Reporting Systems

Risk Management Department assists with AEO

Program Management/Oversight

Communication with Other Government Agencies

about AEO Program

AEO Program Standard Operating Procedures or

Guidelines Exist

New Customs Technical Specialty Positions

Established

AEO Program Implemented Through

Administrative Initiative

AEO Program Implemented Through Passed

Legislation

AEO Program Open to Foreign Companies or MNCs