Improving Customs Transit Systems
In the Islamic Countries
27
The Authorised Economic Operator (AEO) is another concept which is developed as a result
of CAs efforts to deal with the increasing flow of goods among the countries. Since physical
examination of all the goods moving across borders is impeding international trade, the CAs
select the cargo based on their risk management. The idea is to trust reliable companies and
focus on the goods which are considered riskier. WCO Framework of Standards20 (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 freight
forwarders21.
Beyond developing standards and guidelines, the WCO provides capacity building support to its
Members in establishing and enhancing AEO programmes in close cooperation with donor
organizations, wherever required, through international, national, and regional activities.
Partnerships with businesses are also indispensable, as evidenced by the contribution of the
WCO Private Sector Consultative Group22 to the work of the WCO SAFE Working Group in
supporting and reviewing the implementation of the SAFE Framework of Standards.
Mutual recognition of the AEO programmes is given utmost importance by the WCO SAFE
Framework, which will further facilitate the trade of the AEOs. The Framework also underlines
that Mutual recognition could be successful if:
 The concerned programs are compatible with SAFE Framework;
 There is an agreed set of common standards;
 Standards are applied in a uniform manner;
 Agreed upon mechanism and standards for certification authority and legislation
to enable mutual recognition.
The EU is one of the world’s regions that successfully implemented the mutual recognition of
AEO Programmes. The EU has a single AEO Programme since 2008, which is applicable in its 28
Member States.
An efficient CTR will need to be based on the real simplification of transit formalities as the
simplification of documents required, simplification of the transit procedures and adequate
20
2
package/aeo-compendium.pdf
22