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Authorized Economic Operators

In the Islamic Countries:

Enhancing Customs-Traders Partnership

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allocate the resources of the government to be able to concentrate on the cases that requires

the highest levels of control.

4.2.2.1. Safety and Security

Government Perspective

The set-up of AEO program is based on the WCO SAFE framework indicating that the basic aim

is to decrease risk in the Customs. For this purpose, the AEO holders are chosen amongst

reliable firms (satisfying the necessary conditions), and they are subject to less physical and

documentary controls.

As a result, the resources of the Customs are transferred to risky transactions. Such a shift of

resources in turn enhances the security of the country with respect to international supply

chain activities, increases the government revenue and improves the competitiveness of

country in global trade. The facilitation given to the AEO holders related to safety and security

are listed as below:

Summary declaration with reduced data

Subject to lesser safety and security Customs controls based on summary declarations

Fewer documentary and physical controls beside control priorities

Priority for border crossings

Private Sector Perspective

The facilitations given to the AEO holders related to safety and security are listed below:

Summary declaration with reduced data,

Subject to lesser safety and security Customs controls based on summary declarations,

Fewer documentary and physical controls,

Priority if selected for control,

Choice of the place for controls,

Priority for border crossings.

Apart from these, there are also some indirect benefits such as more transparency and

visibility of the supply chain, recognition as a secure and safe business partner by other

companies, improved relations with Customs Authorities and competitive advantages over

non-certified competitors.

In addition to such indirect benefits of the AEO program, many companies are aware of the

value of AEO status in marketing their companies in international trade. As the positive effects

of their new status become more apparent internationally, they started to view the AEO as a

global certification. However, many AEO holders are still not aware of the possible benefits of

Mutual Recognition Agreements.

4.2.2.2. Trade Facilitation

Government Perspective

Trade facilitation is an important component of the AEO program in order to incentivize the

private sector to hold the AEO status. In order to benefit from some of the facilitations

provided by the AEO status, it is necessary to apply for and satisfy additional conditions. These

situations are mentioned in Table 4.5 below.