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Authorized Economic Operator Programs

In the Islamic Countries:

Enhancing Customs-Traders Partnership

101

permissions and certificates or to be subjected to post-release domestic market control of their

products following entry into free circulation.

4.2.5.2. Lessons Learned

Existing trade facilitation measures can be obstacles in the implementation to the AEO

programs as the participation becomes limited.

AEO certificates given to limited type of operators creates loopholes in the supply

chain in terms of security and safety.

Requirement of ISO 27001 in the application documents increases the cost of the

certificate significantly, thereby reducing the number of AEO holders. Many countries

control the IT security within the Customs without requiring external certificates.

4.2.5.3. Needs for Further Advancement

Government Perspective

Due to the large volumes of data collected by the government from the AEOs, added

safety and security measures need to be taken by the government in order to protect

the rights of the AEOs.

To satisfy the needs of the private sector and to adapt to new technologies the

government should revise the AEO legislation periodically through amendments to the

current regulations or through completely new ones.

To communicate these legislative changes to the stakeholders in a timely and efficient

manner, addition of new financial and technological resources to the AEO program

must be found.

A new genre of personnel who are well-versed in technology and law should be

employed.

Dissemination of the data (when and if required) in a safe and secure environment

should be broadened to all the relevant public sector institutions.

Private Sector Perspective

Expectations of private companies from the AEO program should be harmonized

through more efficient communication that dissipates to the grass-roots of the

relevant sectors.

The perception that evaluation process is subject to the opinion of different experts in

the headquarters of Customs Administration should be eradicated through a strict

adhering to standards and better communication.

The misunderstandings such as exemptions from submitting to Customs product-

specific documents such as licenses, permissions and certificates or being subject to

post-release domestic market control of their products following entry into free

circulation should be clarified.

The current 6-month period for the AEO holders to adapt the new regulations may be

too short due to possible cost, time and capacity limitations. Therefore, this

requirement should be relaxed in a reasonable manner.