Authorized Economic Operator Programs
In the Islamic Countries:
Enhancing Customs-Traders Partnership
61
procedure much easier and smoother in terms of the applicant and the Customs Authority and
thus must be improved upon.
Country-Level Convergence
Country-level convergence indicates what percentage of all sub-variables is present in a
particular AEO program. If a country possesses all the sub-variables, than its score would be
100 percent. This can be considered as a vertical reading of the comparator matrix.
Table 3.6 shows the results of country-level convergence analysis for 8 OIC survey
respondents along with two of the international best practices (Japan and Canada) present in
APEC (2016). Accordingly, Morocco and Jordan exhibit 83 and 81 percent total convergence,
respectively. These countries are followed by Egypt and Turkey (76 percent), Uganda (74
percent), Indonesia (72 percent) and Tunisia (70 percent). The lowest amount of convergence
is observed in Oman (66 percent).
This result can be explained by two factors: (i) The age of the program-The correlation
coefficient between the launch year of the AEO program and the country-convergence
percentage is -0.778 indicating that as the AEO program matures, it embodies a more diverse
set of characteristics. (ii) The number of AEO companies-The correlation coefficient between
the number of AEO status holders and the country-convergence percentage is 0.710 signifying
the fact that a higher number of AEO companies is translated into higher convergence
probably through demands of these companies to be more involved in international supply
chains coupled with an increasing need for further advancements in the program for security
purposes.
Table 3.6. Country Level Convergence
AEO Launch
#AEOs
as of 2018 Convergence
Best Practice Countries
Canada 2008 1838 83%
Japan 2006 664 83%
OIC Countries
Egypt 2014 119 76%
Indonesia 2015 80 72%
Jordan 2005 88 81%
Morocco 2006 439 83%
Oman 2017 17 67%
Tunisia 2010 35 70%
Turkey 2013 332 76%
Uganda 2013 51 74%
OIC 75%
Source: Authors’ compilation using survey data and APEC (2016)
OIC AEO programs on average show a 75 percent convergence which is comparable to APEC
average (73 percent) but lower than the international best practice countries chosen for this