Authorized Economic Operators
In the Islamic Countries:
Enhancing Customs-Traders Partnership
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 Less costly exports due to safer and faster trade
 Increase in the number of firms operating at efficient international standards, with
higher competitive power and better internal control processes
Customs Level
The main role of Customs Authorities was to inspect all the goods flows in the second part of
the 20th century (Erceg, 2014). However, the increase in goods flow made this impossible. The
new role of Customs became analyzing the risks and diverting the controls to risky
transactions. In order to execute their new role efficiently; company’s processes, procedures,
administration, and internal control should be assessed for checking the management of
supply chain and potential risks. For this purpose, many Customs Authorities established risk
management units. Moreover, AEO program has been increasingly adopted as a pioneering
tool for the Customs to fulfill their new role efficiently. The following are some of the benefits
the AEO programs provide to Customs Authorities:
 Easing the workload of the Customs administration
 Enabling Customs to focus more on risky shipments and smuggling activities
 Prevention of congestion at Customs
 Accelerating goods movements and vehicle shipments at Customs
Business Level
Benefits to AEO holders are as follows:
 Faster clearance of goods and fewer physical inspections such as use of green lane
 Prior notification if selected for control
 Incomplete declarations
 Simplified declarations
 Off-working hours transactions
 Reduced guarantees
 Local clearance
 Preferential treatment in customs related transactions
 Withholding tax exemption
 Pre-clearance of cargo
 Deferred payment of customs duties
 Better relations and increased cooperation with the Customs administration (Client
relations management)
 Decrease in safety and security vulnerabilities, theft cases and losses
 Decrease in property damage
 Increased reputation and more preference as trusted companies in the domestic and
foreign markets
 Increased reliability and communication among supply chain partners
 Reduced procurement costs and increased cooperation with suppliers along with
reduced insurance costs
 Increases in domestic and international competitiveness due to cost reduction and
time saving
 Preference by foreign investors in business partnerships
 Recognition by international Customs administrations and inclusion into MRAs with
third countries.