Authorized Economic Operators
In the Islamic Countries:
Enhancing Customs-Traders Partnership
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Success Factor 3- Development of regional MRAs to increase the benefits to the AEO
certificate holders and reduce the costs of designing the agreement
One of the precursors of obtaining maximum gains from holding an AEO certificate is mutual
recognition agreements. MRAs make it possible for AEO holders to enjoy the trade facilitation
benefits provided by the partner countries. Furthermore, these agreements guarantee the
security of the supply chain due to recognition of AEO status across partner countries.
Standardization and harmonization of supply chain security measures are costly endeavors.
Therefore, for cost minimization purposes it is desirable to design MRAs with regional trade
partners that tend to have higher levels of bilateral trade volumes due to proximity.
The best practice among OIC countries in terms of regional MRA design can be considered as
the Agadir Agreement between Egypt, Jordan, Morocco and Tunisia. These countries have
signed a trade agreement that includes an MRA for AEO recognition at the same time.
Success Factor 4- Adopting an integrated approach in the legislative, organizational and
operational dimensions
Design of the AEO program should follow an integrated approach taking into account multiple
dimensions (legislative, organizational and operational). During the design phase, legislative
and regulatory reform is often needed, as well as possible organizational restructuring and
alignment with OGAs. In many countries, overlap is often present between Customs
Authorities and OGAs involved in border security and control of exports and imports.
Consultation and alignment with other governmental agencies during the design phase is
therefore crucial to avoid redundant and burdensome procedures in areas of overlap.
Success Factor 5-Designing an attractive package where benefits to AEOs outnumber costs
As concluded from the three case studies, benefits to authorized operators are numerous.
However, these benefits should be evaluated in relation to the costs borne by firms and traders
to obtain authorization. Such costs include application and procedure-related fees, but also the
costs of carrying out necessary changes in order to become eligible for authorization. The EU
case provides a good example for package design, where AEO guidelines are published and
updated by the Taxation and Customs Unit. The guidelines provide a clear demonstration of
benefits, procedures, legal texts and contact offices for agents wishing to obtain authorization.
ICC (2016) suggests the following benefits to be satisfied at a minimum:
 Immediate release of cargo upon arrival by Customs and other government agencies.
 Deferred payment of duties and taxes
 Relief from guarantee/bond requirements
IMPLEMENTATION STAGE
Success Factor 6- Consultation with Customs prior to application
The consultation of prospective AEO holders with the Customs Authorities in the pre-
application period help companies build capacity in terms of compliance and safety/security
requirements of the program. This consultation may be in the form of a compulsory expression
of interest or a formalized voluntary meeting between the applicant and the Customs