1. Introduction
As of January 1, 2008, the “Authorised Economic Operator” (AEO) status is recognized across all member states. AEOs benefit from:
- Simplifications under customs rules.
- Easier customs controls related to security and safety.
The Department of Customs and Excise ensures proper implementation of AEO regulations, balancing customs controls with facilitation for compliant traders.
2. Legal Framework
The AEO status is established under:
- Regulation (EC) No 648/2005, amending the Community Customs Code (Article 5a).
- Commission Regulation (EC) No 1875/2006, detailing the implementation provisions (Articles 14a – 14x).
3. What is an AEO?
An “economic operator” engages in business activities covered by customs legislation. An “Authorised Economic Operator” is a trusted trader in the community, enjoying specific benefits depending on their AEO certificate type.
4. Who Can Become an AEO?
Only economic operators can apply for AEO status, including:
- Manufacturers
- Exporters
- Freight Forwarders
- Warehouse Keepers
- Customs Agents
- Carriers
- Importers
5. AEO Eligibility Criteria
Reliable traders must meet these criteria to obtain AEO status (Article 5a, Reg. 2913/92):
- Compliance with customs requirements.
- Effective management of commercial and transport records.
- Proven financial solvency.
- Appropriate security and safety standards for certain certificates.
6. Types of AEO Certificates
There are three AEO certificate types:
6.1 AEO Certificate – Customs Simplifications (AEOC)
For operators who meet customs compliance, record-keeping, and financial standards.
6.2 AEO Certificate – Security and Safety (AEOS)
For operators who meet security and safety standards in addition to customs compliance and financial standards.
6.3 AEO Certificate – Customs Simplifications/Security and Safety (AEOF)
For operators meeting all criteria and seeking full AEO benefits.
7. How to Apply for an AEO Certificate
7.1 Application Form
Available at regional Custom Houses. Submit the completed form with relevant documents and the AEO Self-assessment Questionnaire.
7.2 Contact Person
Nominate a contact person for providing necessary information to Customs.
7.3 AEO Questionnaire Self-assessment
Helps assess compliance with AEO criteria. Submit it with the application form after reviewing the AEO Explanatory Notes.
8. When Applications Are Not Accepted
Applications will be rejected if:
- They do not meet Articles 14c and 14d of Reg. 1875/06.
- The applicant has a serious criminal conviction related to their business.
- The applicant is undergoing bankruptcy proceedings.
- The applicant’s legal representative has a relevant criminal conviction.
- The application is within three years of an AEO certificate revocation (unless revoked at the operator’s request).
9. Issuance or Rejection
If criteria are met, Customs issues the AEO certificate effective 10 working days post-issue. Otherwise, the application is rejected, but applicants are notified and given a chance to respond before final rejection.
10. AEO Benefits
Benefits depend on the AEO certificate type and include:
- Fewer physical and document-based controls.
- Priority in controls.
- Choice of control location.
- Easier access to customs simplifications.
- Reduced data for summary declarations (from July 1, 2009).
- Prior notifications (from July 1, 2009).
- Indirect benefits like reduced theft and delays.
- Improved customs relations.
- Recognition as a secure partner.
- Mutual recognition.
11. AEO E-learning Module
The European Commission offers an AEO e-learning module under the Customs 2013 program, available on the TAXUD website.
12. European Commission AEO Guidelines
To ensure consistent application of AEO regulations, the European Commission provides detailed guidelines. Review these before applying for an AEO certificate. Access the latest guidelines on the TAXUD customs and security website.
13. Contact Information
For more information, email: [email protected]
Further details are available on the European Commission website under “European Commission – Taxation and Customs Union / Customs / Policy Issues / Customs and Security”.
For additional resources, visit our website at fgacargo.com.cy.
