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Authorized Economic Operators

In the Islamic Countries:

Enhancing Customs-Traders Partnership

6

The TFA Article VII defines authorized operators (AOs) as entities complying with the WTO

member’s Customs laws, regulations, or procedures. While WTO’s AO programs emphasize

trade compliance and may include supply chain security as well, SAFE AEO programs must

always meet the standards for supply chain security.

The TFA and SAFE Frameworks are not

substitutes as stated in WCO (2018): “The WCO strongly supports the implementation of an

AEO programme and welcomes the growing number of countries implementing AEO as well as

various Customs compliance programmes and the Authorised Operator scheme under the

WTO Agreement on Trade Facilitation (TFA) as a first step towards the implementation of a

full-fleged AEO programme.”

1.2. Authorized Economic Operator Design and Implementation Process

As explained in the previous section, business co-operation (

Customs-to-Business)

is one of the

main pillars of the SAFE Framework which methodically established the requirements to

become an AEO. The core aspects of the AEO design and implementation, exactly as stated in

the WCO SAFE Framework 2015, are as follows:

1.

“Demonstrated Compliance with Customs Requirements:

Customs shall take into

account the demonstrated compliance history of a prospective AEO when considering

the request for AEO status.”

2.

“Satisfactory System for Management of Commercial Records:

The AEO shall maintain

timely, accurate, complete and verifiable records relating to import and export.

Maintenance of verifiable commercial records is an essential element in the security of

the international trade supply chain.”

3.

“Financial Viability:

Financial viability of the AEO is an important indicator of an ability

to maintain and improve upon measures to secure the supply chain.”

4.

“Consultation, Co-operation and Communication:

Customs, other competent authorities

and the AEO, at all levels, international, national and local, should consult regularly on

matters of mutual interest, including supply chain security and facilitation measures,

in a manner which will not jeopardize enforcement activities. The results of this

consultation should contribute to Customs development and maintenance of its risk

management strategy.”

5.

“Education, Training and Awareness:

Customs and AEOs shall develop mechanisms for

the education and training of personnel regarding security policies, recognition of

deviations from those policies and understanding what actions must be taken in

response to security lapses.”

6.

“Information Exchange, Access and Confidentiality:

Customs and AEOs, as part of an

overall comprehensive strategy to secure sensitive information, shall develop or

enhance the means by which entrusted information is protected against misuse and

unauthorized alteration.”

7.

“Cargo Security:

Customs and AEOs shall establish and/or bolster measures to ensure

that the integrity of cargo is maintained and that access controls are at the highest

appropriate level, as well as establishing routine procedures that contribute to the

security of cargo.”