Authorized Economic Operator Programs
In the Islamic Countries:
Enhancing Customs-Traders Partnership
113
AEO benefits are not available in dealings with other URA Departments and
government agencies on the border such as Bureau of Standards, National Drug
Authority or Immigrations.
4.3.5.2. Lessons Learned
Being involved in a regional AEO program from its start facilitates capacity building
and increases the participation by private sector in the AEO programs due to higher
potential benefits.
CRM system works very efficiently in improving the capacity of the private sector in
terms of AEO application and implementation.
Without a critical mass of qualified staff in AEO program implementation in the
Customs, a smooth operation is not possible.
Customs staff at the borders should be sensitized for private companies to enjoy the
benefits of the AEO status.
4.3.5.3. Needs for Further Advancement of the AEO Program
Government Perspective
Table 4.6 summarizes the challenges and proposed solutions for the further advancement of
the AEO program of Uganda.
Furthermore, the Uganda Customs plans to develop the simplified AEO Program for particular
sectors such as textiles and automobiles as a part of national economic objectives. The main
objectives are to involve the SMEs in the process to groom them to meet international
standards and to reduce informal trade. These SMEs are planned to be reached by SME
associations in Uganda by making presentations in their biannual meetings.
There are also plans for instating a simplified AEO Program to improve the gender based
involvement in the AEO process. In Uganda, many small companies are headed by women and
there is a well-established stigma in women to participate in formal programs. The objective of
gender-based involvement is to reduce informality and capacity-building in the female
population.
Private Sector Perspective
The understaffing of the AEO related departments in the Uganda Customs should be solved by
employing skilled individuals for the AEO holders to fully utilize the planned benefits of the
program. In particular, the border personnel including the ones located in port cities in Kenya
and Tanzania should be increased and trained to solve the congestion problem.
Even though the Customs officials serve the AEO holders for 24/7, the other government
agencies on the border operate during regular working hours. Therefore, the around-the-clock
working hours of Customs officials only do not provide the intended time saving for the
companies.
Finally, simplification of the authorization procedures would increase the number of AEO
applicants in Uganda.