Authorized Economic Operator Programs
In the Islamic Countries:
Enhancing Customs-Traders Partnership
59
Survey responses show that there is a high degree of harmonization amongst OIC AEO
programs in terms of benefits of AEOs with a convergence rate of 84 percent. All survey
respondents reported that their AEO programs offer improved lead time and predictability,
simplified data requirements and data submission along with different sets of measures to
expedite cargo release, reduce transit time, and lower storage costs. Except for Turkey and
Egypt, in all countries there are different benefits for different types of operators (Figure 3.19).
In terms of MRAs there is a low degree of convergence among OIC AEO programs (52 percent)
even though 5 out of 8 survey respondents belong in the Agadir Agreement. This is due to the
fact that Indonesia, Oman and Uganda do not have MRAs yet and this causes a decline in the
convergence ratios. Indeed, all countries with MRAs (Egypt, Jordan, Morocco, Tunisia and
Turkey) require domestic legislation or OGA/working group approval, joint
validation/observation visits conducted prior to MRA, operational data exchanged
electronically and periodic/regular consultations with partner Customs (Figure 3.20).
Figure 3.20. MRAs
Source: Authors’ compilation using survey data.
The final variable under this theme is related to the status of small and medium sized
enterprises in the AEO programs. It is not surprising that there is low degree of convergence
(44 percent) in this variable among OIC AEO programs. Specific benefits for SMEs exist only in
2 of the 8 survey respondents while 5 out of 8 countries do have SME outreach plans (Figure
3.21).
There is an ongoing discussion about the participation of SMEs in AEO programs. Note that the
WCO has the position that the AEO concept is envisioned to involve and secure all elements in
the international supply chains. A low degree of SMEs participation in AEO programs reduces
the potential gains as the vast majority of a supply chain is composed of SMEs in some
countries. Therefore, provided that security concerns are addressed, the barriers that prevent
SMEs to participate in AEO programs can be reduced by employing different policy options (as
discussed in Chapter 5) to guarantee maximum trade-facilitation gains from an AEO program.
63%
63%
63%
25%
38%
63%
0% 20% 40% 60% 80% 100%
MRAs require Domestic Legislation or OGA/Working
Group Approval
Joint validation/observation visits conducted prior to
MRA
Operational Data Exchanged Electronically
Different Trader Identification
Common Trader Identification
Periodic/Regular Consultations with Partner Customs