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Authorized Economic Operator Programs

In the Islamic Countries:

Enhancing Customs-Traders Partnership

75

These numbers are the minimums and they can get higher. However, it is vital for a voluntary

program to assure its audience that the timeline from application to authorization adheres to

strict deadlines in an efficient way. Otherwise an initiative like the AEO program

implementation that aims to secure the international supply chain as well as facilitate trade

defeats its purpose by creating unpredictability.

Furthermore, it is noted that all OIC AEOs that responded to the survey are missing online

application capability and many lack a specific section on their websites on frequently asked

questions. The presence of these tools is critical in reducing the difficulty of application and

verification procedures as in international best cases.

Table 3.19. Least Commonly Incorporated Sub-Variables in OIC AEO Programs

Sub-Variables

Convergence

Application, verification, and authorization procedures

Consultation with Customs prior to Application

50%

Post-authorization audit

Regular Re-validation Mechanism

38%

Suspension, revocation and cancellation procedures

Appeals Process Exists

38%

Customs organizational structure for AEO programs

Communication with Other Government Agencies about AEO Program

38%

New Customs Technical Specialty Positions Established

0%

Training provided to customs officers

Regular Training Programs

38%

Partnership initiatives

Survey of Trader Satisfaction

13%

SMEs

Specific Benefits for SMEs (including at Application Stage)

25%

Electronic promotion of the AEO program

Online forms

38%

Online Application Capability

0%

FAQ

25%

Source: Authors’ compilation using survey data.

Challenge 3- The low degree of regular re-validation mechanisms for compliant AEOs and

formal appeals processes in cases of suspensions or cancellations may reduce the

attractiveness of AEO status.

Firstly, within OIC AEO programs some countries adopted indefinite AEO authorization with

need-based post authorization audits, while others opted for an expiry date for the

authorization followed by formal revalidation procedures. Depending upon the characteristics

of the Customs organization and ingrained bureaucratic traditions of the country, it is natural

to observe differences in this respect. However, interviews with the private sector