NEWS UPDATE

Denholm Forwarding is delighted to announce that the company has recently been approved as an Authorised Economic Operator (AEO).

Frequently Asked Questions:

THE HM Customs and Revenue web site provides the following answers to some of their most frequently asked questions:

What is an AEO?

An AEO is a business involved in the international supply chain which has proved themselves to be compliant and trustworthy, and where applicable, safe and secure.

When did the law come into force?

AEO status entered into force on 1 January 2008 across the EU.

What is the legal basis for AEO?

AEO was introduced by an amendment to the Community Customs Code in April 2005 - Council Regulation 648/2005, The Security Amendment. The detailed implementing provisions are contained in Commission Regulation 1875/2006 which was published in December 2006 - Authorised Economic Operators - Guidelines.

What were the reasons for introducing AEO?

The introduction of AEO status is the EU response to the need to secure international supply chains and the introduction of Customs-Trade Partnership Against Terrorism (C-TPAT) in the USA.

It is hoped that mutual recognition of similar systems, across other third countries, will take place in the future. There are two pilots happening which will test the mutual recognition, control standards and controls of AEO. These are with the US and China and are being managed by colleagues in Policy, London. HMRC will provide updates on the progress of these pilots via the Joint Customs Consultative Committee (JCCC) network The EU Commission will be looking at the results of the pilots and taking forward the negotiations. Potential date for agreement mid 2009.

Is AEO mandatory for businesses involved in the supply chain?

AEO is not mandatory. The decision on whether you should apply or not is a commercial one that you need to take once you have assessed the benefits for your business against the costs of applying for, and maintaining, the AEO standard.