Authorized Economic Operators
In the Islamic Countries:
Enhancing Customs-Traders Partnership
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Application, onsite validation, authorization, revalidation (revocation) are administered by
field or regional offices, whereas the headquarters is involved in authorization, revalidation
and revocation, as well as coordination of AEO benefits with other government agencies.
Mutual Recognition Arrangements
MRAs aim at increasing end-to-end supply chain security and expand the international trade
network of PIP members. To achieve these objectives, CBSA has signed MRAs with its main
trade partners, including the United States (June 2008), Japan, the Republic of Korea and
Singapore (June 2010), Mexico (May 2016), Israel (July 2017), and Australia (July 2017). There
are also ongoing MRA negotiations with China, the EU and Hong-Kong.
2.2.4 The European-Union Case
Evolution of the AEO Program
Prior to the inclusion of the AEO concept into the EU Customs legislation, many simplifications
were already in use for existing economic operators. The EU’s AEO program was launched on
January 1st, 2008 as a voluntary program providing security amendments under the
Community Custom Code ( ) and its implementing provisions. The
program aims at improving international supply chain security and facilitating legitimate
trade, and therefore covers all operators in the supply chain. The launch of this program is a
response to the introduction of the US C-TPAT and the development of the SAFE framework of
standards in the WCO. New AEO guidelines entered into force on May 1st, 2016.
The new Union Customs Code (UCC) aims –among other objectives- at the rationalization of
Customs procedures, enhancing safety and security of data and goods flow and providing more
trade facilitation for authorized economic operators. In this context, the UCC provides a
“paperless” framework and enhanced risk management. The initial transition to fully
electronic Customs was to end on December 31st, 2020. However, a new deadline has been set
at 2025 for a small number of procedures. Meanwhile, AEO eligibility and validation criteria
were raised. Reform did not prevent the increase of authorizations, where the total number of
AEOs reached 15,576 operators in 2016. According to the most recent data presented by the
“European Commission’s Taxation and Customs Union” at the WCO global conference in March
2018, there are currently a total of 19,001 operators who enjoy the status of an AEO, compared
to only 515 in the first year of program implementation.
Applicants to the program include anyone involved in the international supply chain that
carries out Customs related activities in the EU: Manufacturers, exporters, freight forwarders,
warehouse keepers, Customs agents, carriers, importers, port operators and loaders. Once the
AEO status is granted to an operator by one Member State, it is automatically recognized by
the Customs Authorities in all other Member States (Article 38 (4) UCC).
The EU introduced safety and security authorizations (AEOS), Customs simplifications (AEOC),
and a combination of both (full or AEOF). As a result, three types of authorizations are
available:
 Security and safety (AEOS): AEOS members enjoy a reduction in security controls in
entry and exit measures. In 2018, there are 646 AEOS (4 percent of total AEO) in the
EU.