Improving Customs Transit Systems
In the Islamic Countries
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5.1.7 Authorized Economic Operators (AEO)
The following challenges and policy options were identified for implementation of Authorized
Economic Operators concept:
Table 67: Authorized Economic Operators challenges and policy options
Attributes Challenges Policy Options
Facilitation benefits for
transit operations under
their AEO programmes
and access to the
simplified procedures
 AEO authorization holders
cannot use the benefits for
transit procedure
 Transit procedures are complex
with the presentation of paper-
based mandatory and additional
documents to CAs and OGAs
 CAs to reduce the guarantee
amount to AEO authorization
holders
 Simplified data requirements and
submission for transit
CTR procedures in
accordance with the WCO
SAFE Framework of
Standards (combined pre-
arrival declaration and
transit declaration)
 AEO concept applies to import
and export procedures
 Establish a core set of
internationally accepted trade
facilitation benefits that could be
provided to AEOs for transit
Source: Authors’ compilation
5.1.7.1.1 Facilitation benefits for transit operations under their AEO programmes and access
to the simplified procedures
Customs administrations are encouraged to reduce the guarantee amount for Authorized
Economic Operators (AEOs) and other low-risk operators. The conditions for reducing the
guarantee amount may include, but not be limited to, the following:
 Sound financial situation;
 Sufficient experience in conducting transit operations;
 Compliance with legal and security requirements;
 Proven cooperation with Customs administrations;
 AEO status.
5.1.7.1.2 CTR procedures in accordance with the WCO SAFE Framework of Standards
(combined pre-arrival declaration and transit declaration)
WCO SAFE Framework of Standard emphasizes the importance of establishing a core set of
internationally accepted trade facilitation benefits that could be provided to AEOs under all
relevant national programmes - including transit. When a Customs office inspects transit goods,
the results of the inspection and any other useful information should be shared immediately
with all other relevant Customs offices of transit.