Authorized Economic Operators
In the Islamic Countries:
Enhancing Customs-Traders Partnership
90
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.