Why Authorised Economic Operator?
Against the background of US initiatives following 9/11 and the increased focus on security within the European Community, the European Commission has initiated the Authorised Economic Operator (AEO) program. The AEO
program is designed to increase focus on security measures at the company level, thus helping not only to prevent a
possible terrorist attack, but also to increase transparency in the supply chain and to initiate control programs using risk
management tools.
What's in it for you?
Being AEO certified, you realise benefits including:
- a reduced number of cargo inspections at Community borders;
- a more efficient customs clearance process;
- improved supply chain visibility (access to data);
- improved inventory management;
- reliance on self-policing, rather than on Customs verifications.
The challenge
In Luxembourg the questionnaire to be completed when requesting the status has in the meantime been posted on the customs website (www.do.etat.lu).
Before attributing this status, customs authorities can decide to audit the company. Therefore it is adviseable to perform a "readiness check" before filing the request and to determine the potential benefits of the status for the company or the group.
How PwC can help
We can assist you in complying with the AEO requirements to formally commit to the “program”, document the current supply chain procedures, perform a gap analysis and identify steps for enhancement.
As many operators have already been subject to internal control programs for other already existing voluntary or obligatory audits (e.g. ISO 9001, ISO 14001, ISO 28001, SOX, TÜV or J-SOX), PwC will rely where possible on existing certifications and control standards and only add internal controls that are missing and indispensable to get the AEO certification.
This approach will keep the efforts, resources and changes to an absolute minimum, without neglecting the legal framework and the requirements of the authorities.
