Transcript AUTHORIZED ECONOMIC OPERATORS

AUTHORIZED
ECONOMIC
OPERATORS
The Trade Community and the WCO SAFE
Framework of Standards
Larry L. Burton
Senior Technical Officer
World Customs Organization, Brussels
THE THREE AEO
COMPONENTS;
I.
Conditions, Requirements, Benefits;
II. Validation and Authorization;
III. Mutual Recognition
SOME GUIDING PRINCIPLES
 These Core International Standards form a
Baseline for Participation;
Clear and Tangible Benefits to AEO are a
Necessity;
 Implementation of Mutual Recognition
Programs Require a Phased Approach;
DEFINITIONS PROVIDED
 Authorized Economic Operator (AEO);
 Shipment or Transport Conveyance;
 Third Party Validator;
 Authorization;
 Phased Approach;
 Validation.
I. CONDITIONS AND
REQUIREMENTS: CUSTOMS
AND THE AEO
This, the First of the Three SAFE AEO
Components, Contains:
 Thirteen Detailed Requirements Sections
(Lettered A-M);
 Section Listing Benefits to the AEO.
DETAILED REQUIREMENT
SECTION “A”
Demonstrated Compliance with Customs
Requirements:
Requirements Specified for the AEO,
and Taken into Account When Customs
Considers Qualifications of an AEO
Applicant.
DETAILED REQUIREMENT
SECTION “B”
Satisfactory System for Management of
Commercial Records:
Recognizes the Importance of the
Maintenance of Accurate Commercial
Records by an AEO, and their ready
Availability to Customs.
DETAILED REQUIREMENT
SECTION “C”
Financial Viability:
Recognizes the Critical Role to be filled
by Good Financial Standing in Allowing
an AEO to Fulfill its Commitments
under the SAFE Framework.
DETAILED REQUIREMENT
SECTION “D”
Consultation, Cooperation and
Communication:
Establishes Measures for Both Customs
and the AEO, aimed at Fostering
Mutually Beneficial Working
Relationships.
DETAILED REQUIREMENT
SECTION “E”
Education, Training and Awareness:
This Section Recognizes the Importance of
Reinforcing in Employees (both Customs
and AEO), the Necessity of Learning Proper
Procedures and Dealing with Anomalous
Situations.
DETAILED REQUIREMENT
SECTION “F”
Information Exchange, Access and
Confidentiality:
This Section has Provisions Which Apply to
the AEO, to Customs, and also to the Parties
Jointly. The Thrust of the Section is to
Secure Information and to Prevent its Misuse
or Unauthorized Alteration.
DETAILED REQUIREMENT
SECTION “G”
Cargo Security:
The Section Seeks to Ensure that Cargo
Integrity and Access Controls are
Maintained at the Highest Levels by
Providing Elements both for Customs
and the AEO.
DETAILED REQUIREMENT
SECTION “H”
Conveyance Security:
Elements Within the Section Apply to
Customs and to the AEO, With the
Aspiration that they Work Together to
Secure and Maintain Transport
Conveyances.
DETAILED REQUIREMENT
SECTION ”I”
Premises Security:
Requirements to Implement Enhanced
Protocols to Secure Buildings, and to
Control and Monitor Perimeters. There
are Elements Which Apply to Customs,
and Those Which Apply to the AEO.
DETAILED REQUIREMENT
SECTION “J”
Personnel Security:
Elements for both Customs and the
AEO Regarding Recruitment Matters,
Security Checks, and Personnel
Procedures. The Section also Includes
Removal of Premises Access.
DETAILED REQUIREMENT
SECTION “K”
Trading Partner Security:
Section Applies to the AEO Only, and
Encourages the AEO to Conclude
Contractual Provisions with Partners in
the Supply Chain to Bolster their Level
of Security Commitment.
DETAILED REQUIREMENT
SECTION “L”
Crisis Management and Incident
Recovery:
Section Applies Jointly to AEO and
Customs, and Encourages Advance
Contingency Planning for Recovery
from Adverse Incidents.
DETAILED REQUIREMENT
SECTION “M”
Measurement, Analysis and Improvement:
The Section Seeks to Foster Consistency,
Security Integrity, and Identification of
Security System Improvements by Applying
Certain Requirements to AEO Activities.
BENEFITS TO THE AEO
 Benefits to an AEO are Additional to those
Given Others in Trade Community. Normal
Services and Benefits are Not Withdrawn
from Non-AEO Traders;
 AEO Benefits are Specific and Tangible and
are Grouped in Four Categories Listed (A-D);
 The Benefits List is Indicative and May Be
Supplemented at a National Level.
AEO BENEFITS, GROUP “A”
Measures to Expedite Cargo Release,
Reduce Transit Time and Lower
Storage Costs
AEO BENEFITS, GROUP “B”
Providing Access to Information of Value
to AEO Participants
AEO BENEFITS, GROUP “C”
Special Measures Relating to Periods of
Trade Disruption or Elevated Threat
Level
AEO BENEFITS, GROUP “D”
First Consideration for Participation in
Any New Cargo Processing Programs
II. VALIDATION AND
AUTHORIZATION
The Second of the Three SAFE AEO
Components:
 Provides Discussion Regarding Application for and
Authorization of, AEO Status;
 Contains General Information on the Process of
Validating AEO Qualifications;
 Discusses the Need for Communication and Review
Concerning Levels of AEO Compliance;
 Provides a Process Outline for AEO and Customs
Use in Validation and Authorization Activities;
THE MANDATE FROM ”SAFE”
“The Customs administration, together with
representatives from the trade community,
will design validation processes or quality
accreditation [authorization] procedures that
offer incentives to businesses through their
status as Authorized Economic Operators.”
( SAFE, Pillar 2, Standard 3)
DESIGN AND IMPLEMENTATION
OF VALIDATION PROCEDURES
 WCO SAFE Document Offers Guidance Only;
 Design Obligation Lies with Members;
 Procedures Should Conform to SAFE;
 Incentive Based Benefits Should be
Included;
 Risk Rating Tied to Supply Chain Role;
APPLICATION AND
AUTHORIZATION
 SAFE Standards to be Incorporated into AEO
Practices and Procedures;
 AEO Must Have Self-Assessment Process
and Manager;
 Authorization Granted by National Customs,
not by WCO;
 Non-AEO Companies May Not be Required
by Customs to Participate
VALIDATION PROCEDURE
 A ”Third Party Validator” May be Used for
Validation Assessment Processing;
 Customs, Not the Third Party, Actually
Authorizes an AEO;
 AEO May Request Processing by Customs
Directly;
 All Information Elicited is Confidential;
REVIEW AND MAINTENANCE
 Joint Customs and AEO Reviews to Maintain
and Enhance Compliance Levels;
 Customs May Require Periodic Reports on
Required Information from an AEO;
 Customs Members May Hold Regular
Seminars to Discuss Common Problems and
Share Best AEO Practices
FUTURE DEVELOPMENTS
Standardized AEO Accreditation Provides a
Platform for Mutual Recognition of AEO
Status at Bilateral, Sub-Regional, Regional
and Global Levels. Such Systems will
Involve One WCO Member Recognizing AEO
Authorization in Another WCO Member as
Equivalent to its Own. AEO would Realize
Same Benefits, Improve Predictability, and
Enhance Efficiency in All Countries Applying
the AEO Standards.
VALIDATION AND
AUTHORIZATION ANNEX
 Provides an Authorization Process Outline for the
Prospective AEO;
 Lists Indicative Authorization Criteria to Become an
AEO, for Use by Customs;
 AEO Must First Meet all SAFE Criteria;
 Authorization Valid Unless Revoked, Withdrawn or
Suspended;
 Customs Members May Adjust Process
III. MUTUAL RECOGNITION
Third and Last of the Three SAFE AEO
Components:
 Recognition that Mutual Recognition will Evolve
Over Time (Phase-In Approach);
 Mutual Recognition Relates to SAFE Under:
1. Pillar 2, Std. 3, Authorization;
2. Pillar 1, Std. 6, Advance Elec. Info.;
3. Pillar 1, Std. 7, Targeting/Communication
THE TWO SIDES OF THE
MUTUAL RECOGNITION COIN
Customs Recognizing AEO
Authorizations Granted by Other
Customs Members;
Customs Recognizing and Relying
Upon Security and Control Regimes
Employed by Other Customs Members
AND FINALLY !
A Summary of the Essential AEO Concepts and
Realities:
 Implementation Key: Capacity Building;
 AEO & SAFE Key: Mutual Recognition;
 SAFE Cornerstone: Global Standards;
 Sustaining Factor: Partnership
MANY THANKS
LARRY L. BURTON
Senior Technical Officer
World Customs Organization, Brussels