Authorised Economic Operator (AEO) - Frequently Asked Questions

Q. Where is the legal basis for the AEO programme?

A. The legal basis is contained in European Council Regulation 648/2005 and European Commission Regulation 1875/2006.

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Q. What is the AEO programme?

A. The AEO programme is primarily a trade facilitation measure. Operators established in the EU, that meet specific qualifying criteria, may apply for and receive AEO certification. The aim of the AEO programme is to enhance security through granting recognition to reliable operators and encouraging best practice at all levels in the international supply chain.

The start-up date was the 1st January 2008.

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Q. What preparation should a company make in advance of submitting an application?

A. You should not submit an application for AEO status until all of your relevant procedures are documented and available for inspection. In this regard you should create a tabulated folder of your procedures cross-referencing it with the relevant questions in the self-assessment questionnaire. It may be the case that some of your responses will simply be cross-references to sections in your procedures.

The link to the self-assessment questionnaire is: wordhttp://www.revenue.ie/en/customs/forms/aeo-self-assessment.doc (MS Word, 163KB)

The link to the self-assessment questionnaire explanatory notes is: pdfhttp://www.revenue.ie/en/customs/forms/aeo_explanatorynotes.pdf (PDF, 168KB)

Q. Who can apply for AEO status?

A. Application for AEO status is open to all economic operators established within the customs territory of the EU. Article 1 of Regulation 1875/2006 defines an economic operator as "a person who in the course of his business, is involved in activities covered by customs legislation".

In accordance with Article 4 of the Customs Code, the definition of a 'person' is as follows:

  • a natural person;
  • a legal person;
  • where the possibility is provided for under the rules in force, an association of persons recognised as having the legal capacity to perform legal acts but lacking the legal status of a legal person.

If a person is not directly involved in importing/exporting s/he may not be an economic operator as defined in the regulation. Application for AEO status will be open to all links in the global supply chain, i.e.: manufacturers, exporters, freight forwarders, warehouse-keepers, clearance agents, carriers and importers.

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Q. Will SME's be in a position to apply for AEO status?

A. Yes. The regulation introducing the AEO programme states that "the customs authorities shall take due account of the specific characteristics of economic operators, in particular of small and medium-sized companies."

The conditions and criteria for AEO authorisation relevant to each category of business will apply to all businesses regardless of their size. However, the means to achieve compliance will vary and be in direct relation to the size and complexity of the business, type of goods handled etc.

Q. Where should multinational companies submit their application?

A. A multinational company usually consists of a parent company and subsidiaries. If the subsidiaries are individual legal entities, AEO applications must be submitted by each of the subsidiaries wishing to get AEO status. The applications should be submitted to the Member State where the applicant is established.

However, if a group has all of it's legal entities based in one Member State and it applies the same corporate standards, it may submit one self-assessment questionnaire for all of the entities that are applying for AEO status.

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Q. What impact will the AEO programme have on operators?

A.

  • The EU AEO programme is one part of a worldwide initiative to secure the “Global Supply Chain”.
  • As trade is vital to economic development, steps taken to secure global trade must not undermine legitimate trade flows and equal steps must be taken to facilitate legitimate trade in every way possible.
  • While the legitimate movement of goods by non-AEO's should not be slowed, this cannot be guaranteed.

Q. Is AEO mandatory for businesses involved in the supply chain?

A. AEO is not mandatory. Applying for AEO status is a business decision, and is dependant on the circumstances of your trade, your role in the supply chain, and what the benefits are for your business in having AEO status.

Q. What are the benefits of AEO status?

A.

  • AEO's will be recognised worldwide as safe, secure and compliant business partners in international trade;
  • AEO's will be given a lower risk score in risk analysis systems when profiling;
  • If physical controls are to be conducted AEO's will be given priority treatment;
  • Mutual recognition of AEO programmes under Joint Customs Co-operation Agreements could result in faster movement of their goods through third country borders;
  • Reduced data sets for entry and exit summary declarations – only for AEO safety and security ;
  • AEO's will be in a stronger position to benefit from simplified procedures.

As a consequence of increasing their safety and security standards, traders may also benefit from the following:

  • reduced theft and losses;
  • fewer delayed shipments;
  • improved planning;
  • improved customer loyalty;
  • reduced security and safety incidents;
  • reduced crime and vandalism;
  • improved security and communication between supply chain partners.

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Q. Where should applications be submitted?

A. The AEO application form with the 11 annexes and the wordself assessment questionnaire (MS Word, 163KB) should be submitted to the AEO section in Revenue, Government Offices, Nenagh, Co Tipperary.

The link to the AEO application form and explanatory notes is: wordhttp://www.revenue.ie/en/customs/forms/aeo_application.pdf (PDF, 50KB)

Q. How long will administrations have to process applications?

A. Administrations will have 120 days from the date of receipt to process applications. However, during a transitional period of 24 months starting from 1 January 2008 the period for processing applications will be extended to 300 days.

Q. How long will the authorisation be valid for?

A. There is no expiry date on authorisations. An AEO is legally obliged to inform the competent customs authority of significant events that could affect his/her authorisation. Authorisations will also be subject to review if any of the following occur:

  • major changes to the relevant Community legislation;
  • reasonable indication that the relevant conditions and criteria are no longer being met by the AEO.

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Q. Who will carry out the evaluation of applications?

A. The physical evaluation of AEO applications will be carried out by Revenue's regional staff.

Q. What is the criterion to be satisfied by applicants applying for AEO status?

A. There are four blocks of criteria, which must be satisfied, and they are as follows:

  • An appropriate record of compliance with customs requirements;
  • A satisfactory system of managing commercial and, where appropriate, transport records which allow appropriate customs controls;
  • Proven financial solvency;
  • Appropriate security and safety standards.

Q. During the AEO evaluation process, will the Revenue Commissioners take into account other national or international certifications that have the same or similar criteria? If yes, what are the certifications that will be acceptable as equal to AEO?

A. During the evaluation process, we will take into account recognised certificates that are relevant to fulfilling the AEO criteria. If a company has Regulated Agent status as referred to in Regulation (EU) No 2320/2002 and fulfils the requirements provided for in Regulation (EU) No 622/2003, the criteria for an applicant's security and safety standards will be deemed to have been met in relation to the premises for which the applicant obtained the status of regulated agent.

There are specific ISO standards that may be recognised and the EU AEO guidelines include a column with references to relevant ISO's. However, having an ISO-certification does not automatically mean that the specific AEO criteria are met, sometimes an ISO-certification will not fully comply with the AEO criteria and additional requirements must be fulfilled. Part 1, Section II.3.2, of the EU AEO guidelines refers to other recognized certificates.

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Q. Is the AEO evaluation an audit?

A. The evaluation of the AEO application will not constitute a regular customs audit.

Q. How long will the evaluation process take?

A. This will vary, depending on the size of the company and the type of business. Revenue will endeavour to make the process as simple as possible for operators. Applicants can help reduce the amount of time involved by ensuring that they study the EU AEO guidelines, complete the self-assessment questionnaire, and compile all of the relevant documents in advance of submitting a formal application.

Q. Is there an AEO Helpdesk?

A. Any questions or queries can be directed to the AEO Section in Nenagh. Details are published in the pdfAEO Contact Details (PDF, 10KB) section of the website.

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Q. Will an AEO authorisation be conditional on production of a Tax Clearance Certificate?

A. An AEO authorisation will not be conditional on production of a Tax Clearance Certificate. However, the Revenue Commissioners will undertake a general tax compliance check when evaluating the financial solvency criteria.

Q. Can the decision in relation to AEO authorisation be appealed?

A. Any person who is aggrieved by a written decision by the Revenue Commissioners or an officer of the Revenue Commissioners in relation to a customs matter covered by EU customs legislation may appeal such decision [Revenue Public Notice C & E 5 refers].

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