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Authorized Economic Operator Programs

In the Islamic Countries:

Enhancing Customs-Traders Partnership

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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.