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Lack of Training at the Customs:

Implementing an AEO program requires a group of

well-trained personnel dedicated to process the application and evaluation of the

AEOs.

Lack of Awareness at the Customs and at the firms:

Recognition of the importance of

the security of the supply chain both at the company level and the Customs are in the

core of the program. Related education and training is the key to introduce awareness

on the issue, which would take time in some of the countries.

Institutions:

The institutional structure of the country may not be appropriate for

adoption of an AEO program.

3.7. Major Achievements and Challenges

In the light of the analysis of survey responses, this section presents the major achievements

and challenges of the OIC AEO programs by illuminating the most and the least commonly

incorporated features in these programs.

It has to be noted that 37 of 92 sub-variables in the survey exhibit 100 percent convergence

across the OIC AEO programs as shown in Table 3.18. This is a praiseworthy accomplishment

considering the importance of harmonization across countries to maximize the gains from AEO

programs.

Achievement 1- Self-assessment procedure has become standard across the OIC AEO

programs.

Having perfect convergence of the OIC AEO programs in terms of the existence of self-

assessment procedures is important for achieving the objectives of these programs. Solution of

any problem starts with awareness. Companies need to be self-aware of their strengths and

weaknesses if trade facilitation and security/safety of international supply chain are to be

obtained. It is granted that there are wide differences between the scope and length of self-

assessment questionnaires that are used in the OIC AEO programs. However, as the programs

mature, these questionnaires are simplified to the extent that they still achieve their purpose

and updated to reflect the new developments in the ways of conducting business across

borders. OIC case studies presented in Chapter 4 provide examples to this effect.

Achievement 2- The line of procedure from application to post-authorization show a great

degree of similarity within the OIC AEO programs. Furthermore, there exists maximum

level of convergence in terms of compliance and physical security requirements.

It is one of the most desirable features of successful MRAs to have harmonized application,

verification, authorization and post-authorization procedures as well as very similar criteria to

be eligible for the AEO status. The OIC AEO programs exhibit high-degrees of convergence in

terms of many sub-variables of these procedures. What is more, there is 100 percent

convergence in terms of existence of compliance and physical security requirements.

Naturally, these requirements vary in their depth as well as austerity and therefore there is

still room for improvement. However, it is possible to say that the basic groundwork has

already been laid in terms of AEO application processes and eligibility criteria.