Authorized Economic Operators
In the Islamic Countries:
Enhancing Customs-Traders Partnership
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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