The AEO status took legal effect on 1 January 2008.  Since then the customs administrations in the EC received hundreds of applications.  The vast majority of the applications are for a combined customs simplification and safety and security AEO certificate and have been received from a wide range of businesses, including importers, exporters and freight agents.

In the meanwhile, the first applications have completed the authorisation process and AEO certificates have been issued to the successful applicants (a.o. in Denmark, Germany, the UK and the Netherlands).   We expect the number of applications to grow in the coming months.

It is also expected that the benefits of AEO status will increase once mutual recognition agreements are in place.  The EC is currently in negotiation with a number of third countries, with the United States and China taking priority because of the volumes of trade involved.  An agreement has been concluded with the US on strengthened co-operation on security with the US and there are on-going discussions with the US to reach a mutual recognition of our standards.  According to our information the US authorities will expand the C-TPAT certificate with export transactions.  To our opinion this decision will speed up the mutual recognition of the AEO and C-TPAT standards between the US and EU.  Next to this, a pilot project has been started to study the smart and secure trade lanes between the EC and China.

Next to the US and China, Norway and Switzerland are also taking priority due to their shared border with the EC.  It is expected that Norway and Switzerland will introduce AEO or an AEO equivalent regime as a result of new pre-notification rules being introduced in the EU from 1 July 2009.  These rules require information on consignments being imported into the EU to be provided between 1 and 24 hours before the consignment leaves its point of departure.  This rule may have major impact at the borders with Norway and Switzerland as it could cause huge traffic jams and lenghty waiting for customs administrations.

A new Regulation applying the EC’s Generalised System of Preferences (GSP) has been adopted by the EU Member States.  This decision will allow the EU to maintain preferential access to its market for 176 developing countries for the period from 1 January 2009 until the end of 2011. The system is being updated and improved every three years, ensuring that GSP is targeted at those countries that need it most.

As a result of the current re-calculations, GSP preferences will be re-established for six countries and suspended for one.  Below we give you an overview of these changes per beneficiary country and product group combinations:

Re-establishment of preferences:

• Algeria, Section V (Mineral products)
• India, Section XIV (Jewelry, pearls, precious metals and stones)
• Indonesia, Section IX (Wood and articles of wood)
• Russia, Section VI (Products of the chemical or allied industries) and Section XV (Base Metals)
• South Africa, Section XVII (Transport equipment)
• Thailand, Section XVII (Transport equipment)

Suspension of preferences:

• Vietnam, Section XII (Footwear, headgear, umbrellas, sun umbrellas, artificial flowers, etc…) 

The net effect of these adjustments is worth at least €160 million to beneficiary countries in terms of import duties that would otherwise be imposed. 

Two countries (Myanmar and Belarus) remain temporarily withdrawn from GSP preferences because of human rights violations. Moldova is removed from the list of beneficiary countries as the EC granted special preferences under a separate legal instrument in March 2008.

GSP covers three separate preference regimes: 

1. The standard GSP, which is an autonomous trade arrangement through which the EU provides non-reciprocal preferential access to the EU market to 176 developing countries and territories.  In 2007, developing countries exported €57 billion worth of goods under GSP, with a nominal duty loss for the EU of €2.5 billion. 
2. The EU also offers a special incentive arrangement for Sustainable Development and Good Governance, known as GSP+.  The GSP+ offers additional preferences to support vulnerable developing countries in their ratification and implementation of relevant international conventions on human and labour rights, environmental protection, and good governance. 
3. A third arrangement is the EBA initiative (Everything But Arms). The EBA gives the 50 least-developed countries duty free access to the EU for all products, except arms and ammunition and 41 lines concerning rice and sugar, for which duty free quotas are established until full liberalisation is achieved in September 2009 (rice) and October 2009 (sugar).  For the period from 1 October 2009 to 30 September 2012 the importer of sugar shall undertake to purchase such products at minimum price not lower than 90% of the reference price.

The names of the first Belgian customs representatives abroad have recently been published: Paul Raes (Moscow), Isabelle De Stobbeleir (Beijing), Carine Willems (Pretoria), Werner Vandercruyssen (New Delhi) and Philip Bogaert (Washington D.C).  Referring to our article of 5th May, these people have been appointed to represent the Belgian Customs Authorities in the above mentionned countries.   The representatives are expected to liaise between the customs authorities of the guest country and the Belgian customs authorities.  They should assist foreign companies interested in dealing with Belgian companies and act as contact for economic operators and our administrations in the field of the AEO certification path. The post of customs representative is assigned for a period of 4 years and can maximum be twice extended with 1 year.