Previous Page  130 / 194 Next Page
Information
Show Menu
Previous Page 130 / 194 Next Page
Page Background

Authorized Economic Operators

In the Islamic Countries:

Enhancing Customs-Traders Partnership

120

Recommendation:

A centralized and automated data exchange system between the different AEOs and related

government agencies should be adopted. The import/export declarations of the trader should

be sent to all stakeholders in a safe and secure electronic environment for their examination,

verification and authorization of transactions. Next, the government agencies either authorize

electronically or require physical inspection.

Challenge 5- Difficulties in identification of tangible benefits

In spite of the number and the diversity of benefits offered in the OIC AEO programs, these

benefits may not be enough to join the program in an economy that already has many trade

facilitation measures in place.

Turkey, for example, had a trade facilitation measure called authorized trader status which

granted most of the trade facilitation benefits of the AEO program without requiring stringent

safety/security measures. Under these circumstances it was very hard to convince companies

to participate in the AEO program.

Recommendation:

1.

The private sector should be involved in the design of the AEO program from the

beginning to pinpoint the needed tangible benefits.

2.

Awareness about the security of supply chain should be created among prospective

AEO status applicants.

3.

The number of MRAs should be increased, particularly with the major trading

partners, to extend the tangible benefits across the borders.

Challenge 6- Insufficient number of MRAs

OIC region countries are experiencing difficulties in engaging and succeeding in MRA

negotiations due to diverse set of implementation practices across countries. MRAs have

utmost importance for AEO programs as the aim behind them is the globalization of supply

chain security and compliance standards.

Standardization and harmonization of security assessment, and implementation processes

take time for the Customs to sign MRAs. However, once Customs start to sign MRAs,

maintaining compliance and risk management will become more effective and will lead to new

MRAs.

For the participation of developed countries in the MRAs with the OIC countries, the quality of

AEO implementation is important, which crucially depends on institutions such as rule of law

and control of corruption.

The European Union uses mechanisms to electronically exchange data automatically.

Majority of APEC countries exchange data through encrypted Excel files.

Recommendation

1.

The governments should note the challenges presented in Box 5.1 to design a

successful MRA.

2.

For mutual benefits to be tangible for AEO holders in partner countries, trade

identification numbers should be harmonized.

3.

The Customs Authorities should invest in capacity building initiatives to exchange data

in a safe and secure manner across MRA participants.