FACILITATING INTRA-OIC TRADE:
Improving the Efficiency of the Customs Procedures in the OIC Member States
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Table 5: Objectives and Benefits of Post Clearance Audit
OBJECTIVES BENEFITS
 To assure that Customs declarations have been
completed in compliance with Customs
requirements, via examination of a trader’s
systems, accounting records and premises;
 To verify that the amount of revenue legally
due has been identified and paid;
 To facilitate international trade movements of
the compliant trade sector;
 To ensure goods liable to specific
import/export controls are properly declared,
including prohibitions and restrictions,
licenses, quota, etc;
 To ensure conditions relating to specific
approvals and authorizations are being
observed, e.g. pre-authenticated transit
documents, preferential origin/movement
certificates, licenses, quota arrangements,
Customs and excise warehouses and other
simplified procedure arrangements.
 Compliant trade is facilitated at the point of
Customs clearance as border controls can be
reduced;
 Enables Customs to gain better information on
and understanding of clients’ business;
 Risk levels can be more easily assessed and
reviewed: a premises visit provides the
opportunity to identify risks and weaknesses in
traders’ systems;
 Facilitates client education, long-term and
comprehensive compliance management
focus;
 Customs administrations’ resources are more
effectively deployed;
 Customs can promote the concept of voluntary
compliance and self-assessment;
 Suspected fraudulent activities may be
identified and referred to enforcement unit for
appropriate action;
 Provides a platform for evaluating continued
entitlement to Authorized Economic Operator
status, where applicable.
Source: WCO (2012) “Guidelines for Post Clearance Audit Volume 1”
-Authorized Economic Operators (AEO)
The AEO is another concept which is developed as a result of Customs Administrations
efforts to deal with increasing flow of goods among the countries. Since physical
examination of all the goods moving across borders is impeding international trade, the
Customs Administrations are selecting the cargo based on their risk management. The
idea is to trust the reliable companies and focus on the goods which are considered as
more risky.
WCO Framework of Standards (WCO SAFE) defined the AEO as “a party involved in
the international movement of goods in whatever function that has been approved by or
on behalf of a national Customs administration as complying with WCO or equivalent
supply chain security standards”. According to the WCO SAFE, AEOs may include
manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries,
ports, airports, terminal operators, integrated operators, warehouses, distributors and