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Authorized Economic Operators

In the Islamic Countries:

Enhancing Customs-Traders Partnership

118

5.2 Challenges and Policy Recommendations

Challenges and policy recommendations for AEO programs in OIC countries are provided in

this section. Note that these recommendations are not tailor-made to each country and should

be used with caution. In other words, no single prescription should be used for every AEO

program.

APPLICATION PROCESS

Challenge 1- Lengthy AEO approval times

Lengthy AEO approval times reduce predictability in the approval process and diminish

interest in AEO certification.

The EU announces the timeline of its authorization process on its website and is held

accountable if discrepancies occur. Japan employs a voluntary consultation mechanism prior

to the AEO application, which is thought to reduce processing times to 1-2 months. Among OIC

members, Uganda is particularly noteworthy in this respect. URA also utilizes the same

mechanism; however, due to immaturity of the private sector resulting from financial

incapability and wide variety of doing business practices across the country, the approval time

does not decrease and stays at record levels in the OIC region.

Recommendations:

1.

Online application capability should be developed. That way, significant gains in the

application, verification and authorization processes would be realized.

2.

Frequently asked questions should be posted on web sites to reduce the trivial

questions in regards to AEO implementation.

3.

Ex-ante consultation of the prospective AEOs with related Customs officials should be

incorporated into the program design to avoid trivial mistakes and to provide

guidance before application.

4.

An anticipated processing timeline should be developed and then announced on the

website of the Customs Authority. Furthermore, the Customs Authority should be

responsible from standardization of processing times by operator type.

5.

The data on actual processing times should be published on the website along with the

targeted time frames.

6.

In case of significant delays, the Customs Authority should be held accountable

through predetermined and announced rules.

Challenge 2- Lengthy self-assessment questionnaires

Lengthy self-assessment questionnaires discourage applicants and diminish interest in AEO

certification.

Turkey has shortened its questionnaire in 2017 that resulted in a significant increase in the

number of applicants.

Recommendations:

1.

Online application capability would help this challenge as well by providing a time-

saving opportunity for the applicants.

2.

Shortening of the questionnaire without compromising the collection of information

vital for the evaluation of the AEO application can be achieved by identifying the