Authorized Economic Operators
In the Islamic Countries:
Enhancing Customs-Traders Partnership
56
Theme 5: Customs organizational structure for AEO programs
There exists an average 75 percent convergence within the OIC Customs organizational
structure variable. It appears that the development of AEO programs in OIC happen to involve
consultations with stakeholders.
It is commendable that in OIC AEO programs there is 100 percent convergence in terms of
internal checks/controls along with formal reporting systems. Moreover, there is a high degree
of convergence for a dedicated office for AEO program administration within Customs (88
percent) and AEO programs being open to foreign companies (88 percent). The last one is
particularly important because many OIC members demonstrate willingness and effort to
attract more foreign direct investment to their countries. Being able to grant AEO status to the
subsidiaries of foreign enterprises may play a notable role in appealing multinationals that are
particularly active in global value chains.
There are also sub-variables where there is a very low degree of convergence and requires OIC
members to devise solutions to overcome these difficulties. Firstly, communication with other
government agencies within OIC AEO programs is low (38 percent convergence). This is
notable considering the fact that the WCO SAFE Framework started focusing on other border
agency cooperation recently. Secondly, there is no convergence in terms of new Customs
technical specialty positions established. This is due to the fact that all programs in the survey
respondents’ group were established using the existing human resources of the Customs
(Figure 3.16).
Figure 3.16. Customs organizational structure for AEO programs
Source: Authors’ compilation using survey data.
88%
100%
100%
63%
38%
100%
0%
100%
75%
88%
0% 20% 40% 60% 80% 100%
Dedicated Office for AEO Program Administration
Internal Checks/Controls
Formal Reporting Systems
Risk Management Department assists with AEO
Program Management/Oversight
Communication with Other Government Agencies
about AEO Program
AEO Program Standard Operating Procedures or
Guidelines Exist
New Customs Technical Specialty Positions
Established
AEO Program Implemented Through
Administrative Initiative
AEO Program Implemented Through Passed
Legislation
AEO Program Open to Foreign Companies or MNCs