The EU Commission recently published specific guidelines on Authorised Economic Operator status (AEO) for multinational or large businesses (EU established or not). Most of the time they consist of a parent company and subsidiary companies and/or Permanent Business Establishments/branches. In these guidelines the Commission clearly defines:

• Subsidiary = an incorporated entity created in the host EU country (national business legal forms! ), its capital is fully owned by the parent company or it is controlled by a company in collaboration with minority local partners (a joint subsidiary). Subsidiairies are legally independent from their mother company.
• Branch = is not an individual legal entity and has no legal personality. A branch is an office/premise/another location of the company itself. A branch forms part of the company’s total assets.
• Permanent Business Establishment  = is a fixed place of business through which the business of an enterprise is wholly/partly carried out.

Regarding AEO application for the multinational or large business of an enterprise, the following scenarios are now foreseen:

• all subsidiairies/PBEs being separate legal entities shall apply separately for an AEO status.
• all branches/PBEs which are not individual legal entities cannot apply separately for an AEO status and one single application covering all of them shall be submitted by the parent company considered as a person according to the EU legislation.

Customs4trade assisted and assists several large and multinational companies with their AEO certification process in different Member States. Our own developped C4T AEO tool makes complex situations manageable:

• many different stakeholders
• stakeholders in different locations
• different legal entities
• different sites or business units
• different member states
• different languages

The C4T AEO tool is designed to reduce your project time for getting the AEO status and reduces efforts for your internal and external ressources. With the easy status reporting, you are in control of the process.

Click here to read more on these specific guidelines !

Between the EU Member States and the European Commission, a new AEO Self-Assessment Questionnaire was agreed in order to guarantee a uniform approach throughout the Member States. It aims to simplify and to speed up the AEO application.

The new Self-Assessment Questionnaire is harmonized at European level. However, depending on whether the Customs Administration of a Member State already disposes of access to information (e.g. sections 2 and 4), not all questions have to be answered in every Member State.

The Member States dispose of a transitional period till 31 December 2010 to adapt their internal procedures and language versions. They can start to use the new Self-Assessment Questionnaire before the end of this transitional period, but they have to keep in mind the needs of the economic operators.

Customs Authorities of the Member States will ensure smooth processing of the applications already submitted with the old version of the self-assessment questionnaire.  Of course our C4T AEO tool will keep up with the most updated information.

As soon as a Member State starts using the new Self-Assessment Questionnaire, this will be published here.

The EU electronic course which is designed to help companies learn the relevant facts about AEO legislation & process has been updated.

Following the legislative changes, the content has been adapted with the mandatory obligation to enter the EORI number in the AEO application and the deadlines for issuing the certifates.  

This course has been developed by the Customs and Taxation Directorate General of the European commission. It is their target is to foster a uniform implementation of the standards throughout the EU.

The AEO electronic course can be freely accesses and downloaded here.

Recently the Belgian Customs Administration has decided to eliminate or reduce certain guarantees for AEO certified companies. The Circular of May 18, 2010 lays down the provisions for granting an exemption or a reduction in security for authorized economic operators (AEO certified companies) with customs activities in Belgium.

An exemption from the security is granted for:
1. the temporary storage of goods in anticipation of the declaration;
2. the placing of goods under economic customs procedures (customs warehousing and inward processing relief) and for processing of goods under customs control in the name of the AEO certified operator;
3. the comprehensive guarantee on Community / Common transit to the extent of the reference amount if
a. the Belgium-based operator is the authorized declarant AND
b. the approved operator has sufficient experience in using the system Community / common transit and has control over transportation to the required criteria of the CCA AND
c. the Community / Common transit does not cover goods with a higher risk of fraud as defined in the CCA.

If the approved operator has no control over the transport, the amount of the guarantee is reduced to 30% of the reference amount.

If the Community / common transit concerns goods with a higher risk of fraud, the amount of the comprehensive guarantee is reduced in Belgium to 30% of the reference amount if:
1. the in Belgium-based authorized operator is the declarant AND
2. the approved operator has sufficient experience on the use of the scheme Community / common transit and has control over transportation to the required criteria of the CCA.

If the approved operator does not have sufficient experience on the use of the scheme Community / common transit or has not enough control over the transport, no reduction of the guarantee is granted.

If you have any question regarding this information, contact us for more information.

The purpose of the Self-assessment is to support economic operators in evaluating the requirements necessary for obtaining the AEO status. It provides Customs with additional information about the economic operator in order to facilitate the customs evaluation of the AEO-application and the subsequent examination.

Complexity of the Self-assessment

1. All departments are involved (HR, Production, Logistics, Sales, Customs, Security, Safety, IT,…). The internal communication is time consuming before a final agreed answer is written down on the Self-assessment questionnaire.
2. An EU model of the self-assessment questionnaire is available, but specific national provisions have forced Member States to create adapted assessment models.
3. Different languages can be involved.
4. It is nearly impossible to get an overview of the status of the self-assessment when it is in process.
5. The Self-assessment must be updated in case of changes, it is a continuous process.

C4T AEO-tool: the solution to match your needs!

- User-friendly web-based tool
- Interactive communication platform
- Upload documents related to the questionnaire
- Manage your complex organisational structures
- User management
- Secured portal
- Flexible, available at any time and any place
- Status of questions and overview of the Self-assessment is known at any moment
- Significant reduction of project time, external and internal resources
- Less travel time
- Re-activation of the assessment
- Tailor-made assistance

Interested in more information? info@customs4trade.com