Survey responses show that there is a high degree of harmonization amongst OIC AEO

programs in terms of

benefits of AEOs

with a convergence rate of 84 percent. All survey

respondents reported that their AEO programs offer improved lead time and predictability,

simplified data requirements and data submission along with different sets of measures to

expedite cargo release, reduce transit time, and lower storage costs. Except for Turkey and

Egypt, in all countries there are different benefits for different types of operators (Figure 3.19).

In terms of

MRAs

there is a low degree of convergence among OIC AEO programs (52 percent)

even though 5 out of 8 survey respondents belong in the Agadir Agreement. This is due to the

fact that Indonesia, Oman and Uganda do not have MRAs yet and this causes a decline in the

convergence ratios. Indeed, all countries with MRAs (Egypt, Jordan, Morocco, Tunisia and

Turkey) require domestic legislation or OGA/working group approval, joint

validation/observation visits conducted prior to MRA, operational data exchanged

electronically and periodic/regular consultations with partner Customs (Figure 3.20).

Figure 3.20. MRAs

Source: Authors’ compilation using survey data.

The final variable under this theme is related to the status of

small and medium sized

enterprises

in the AEO programs. It is not surprising that there is low degree of convergence

(44 percent) in this variable among OIC AEO programs. Specific benefits for SMEs exist only in

2 of the 8 survey respondents while 5 out of 8 countries do have SME outreach plans (Figure

3.21).

There is an ongoing discussion about the participation of SMEs in AEO programs. Note that the

WCO has the position that the AEO concept is envisioned to involve and secure all elements in

the international supply chains. A low degree of SMEs participation in AEO programs reduces

the potential gains as the vast majority of a supply chain is composed of SMEs in some

countries. Therefore, provided that security concerns are addressed, the barriers that prevent

SMEs to participate in AEO programs can be reduced by employing different policy options (as

discussed in Chapter 5) to guarantee maximum trade-facilitation gains from an AEO program.

63%

25%

38%

63%

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

MRAs require Domestic Legislation or OGA/Working

Group Approval

Joint validation/observation visits conducted prior to

MRA

Operational Data Exchanged Electronically

Different Trader Identification

Common Trader Identification

Periodic/Regular Consultations with Partner Customs