Columns 2-5 of Table 3.16 present cost and time to export and import. In the OIC region, the

average time and cost to import and export for 2016-2017 average is much lower for the

countries implementing an AEO program compared to OIC countries without an AEO program.

Nonetheless, time to export and import on average for the AEO programs in the OIC region is

much higher than the best practice countries. Scrutinizing the cost to export and import, they

are much higher than the best practice countries in the OIC AEO programs (except Canada), on

average.

Table 3.17 presents the logistic performance indicators of the World Bank in 2016 for the OIC

countries and the best practices. Similar to trade costs, logistic performance indicators related

to the AEO program, namely, Customs (Column 3), Tracking & tracing (Column 7) and

Timeliness (Column 8) are higher in best practice countries compared to the OIC region.

Moreover, the OIC countries with an AEO program have higher Customs sub-logistic

performance indicator, compared to countries without an AEO program.

The only outlier country is the United Arab Emirates. They have much higher logistic

performance among all indicators than the AEO average in the OIC region. Moreover, they are

doing much better than the EU average in logistics.

3.6 OIC Member States not implementing an AEO Program

Among the OIC Member States, there are 33 countries that do not implement either an AEO

Program or a CCP. Some of the countries in the region are planning to initiate an AEO program

based on their responses to the surveys. However, some other countries in the region do not

intend to design a program. The reasons behind this decision are inferred using the survey

results along with authors’ own assessment of literature and listed as follows:



Financial incapability of the firms:

Financial viability of the AEO holding company is

particularly important for the ability to maintain and improve upon the existing

measures to secure the supply chain. The company should satisfy physical,

infrastructural, and procedural security which is costly.



Trade volume insufficiency:

Obtaining the AEO status has some fixed costs and

operational costs for the company. There might be a threshold in regards to the

volume of trade for each company that brings benefits more than the costs of the

application and maintenance of the AEO. In some of the countries, the number of

companies that can pass this threshold might be very few.



No demand from the private sector:

The consultations of the Customs with the

private sector would prevent the Customs to initiate an AEO program due to lack of

demand.



Trade partners:

The countries’ trade partners and whether they have an AEO

program would be an important indicator for a country to initiate an AEO program.



Lack of capacity at the Customs:

In order to initiate an AEO program, the Customs

needs to improve its infrastructure and human capital in line with the SAFE

Framework and international standards. Canada enhanced its existing Partners in

Protection Program by devoting 11.6 million CAD (10.8 million USD) in order to

comply with the SAFE Framework and international standards. For the countries in

OIC region the cost of initiating an AEO Program may not be as high as what Canada

spent, but still there is a burden which may not be a priority for the country.