Authorized Economic Operators
In the Islamic Countries:
Enhancing Customs-Traders Partnership
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Currently in Turkey, almost all of the requirements for applying for the AEO status can be
satisfied by large and export/import intensive companies. Large companies that recognize the
necessity of AEO status have been awarded this certificate. However, small and medium-sized
firms have to invest heavily in order to satisfy the requirements and to make a structural
transformation in their modus operandi.
The benefits of granting the AEO status to the SMEs are twofold: (i) By meeting the
requirements of the AEO application, SMEs would experience a transformation in their
institutional structure, which certainly has ripple effects for the entire economy as these firms
make up almost 97 percent of all firms in Turkey. (ii) It is also valuable for large firms that
SMEs obtain the AEO status. Many large firms interact with SMEs in their supply chain. Having
AEO certification without business partners holding the same status would not bring the
anticipated benefits at the most desired levels.
At this point, it is necessary to note that, for the last decade, there have been extensive
amounts of subsidies given to boost the performance of SMEs in Turkey. However, Dincer and
Tekin-Koru (2018) show that the productivity of SMEs has been much lower than the large
firms without showing any improvements in spite of the subsidies. In other words, small and
medium size firms could not increase their productivity leading to the sustained gap with large
firms.
In conclusion, it is difficult for SMEs in Turkey to hold the AEO certification due to limited
benefits they would utilize and high costs they should undertake. However, it is important that
these firms should be included in a sub-program, as in the Jordanian Silver List, to increase
their capacity in terms of institutional standards with the purpose of satisfying compliance and
security requirements of the AEO program in a stepwise manner.
4.2.3.6. Training and Capacity Building
In order to process the AEO program, the Ministry set up new units in its Regional
Directorates. Moreover, training is provided to the staff of Regional Directorates by
Headquarters of the Ministry whenever there is an amendment in the legislation.
The Ministry of Trade employs the designated auditors of the AEO program, who were trained
for two weeks by the experts from Netherlands and France regarding the on-site inspection,
from the same group of auditors during the implementation. The aim is to develop
specialization of the auditors on AEO and deepen their information. However, specialized
auditor implementation is not supported by the legislation at the moment.
The Ministry has not designed any joint training activities with private sector at the moment.
However, they provide training to the private sector when requested.
4.2.4. Evaluation of the AEO Program
4.2.4.1. Audit of AEOs
AEO holders are required every year to "update the self-assessment questionnaire" and
"prepare the annual activity report".
The Ministry regularly monitors the validity of the conditions of the authorized operator
certificate and whether the conditions for granting the authorization and permissions of the