AEO authorisation: requirements and where to apply

AEO, authorised economic operator, is a status EU customs grant to a business established in the EU that shows a clean compliance record, records that allow customs controls, financial solvency and, depending on the type, customs competence or security standards [1]. You apply to the customs authority of the country where your main accounts for customs purposes are held, and customs decide within 120 days of accepting the application, a period they can extend by up to 60 days [1] [2].

AEOC and AEOS

There are two types of authorisation. AEOC, for customs simplifications, gives access to certain simplifications in the customs legislation. AEOS, for security and safety, gives facilitations related to security and safety. A business can hold both, and the status is recognised by customs in every member state [1]. An AEO is subject to fewer physical and document-based controls, and consignments selected for control are controlled first. An AEOS that lodged the entry summary declaration is told before the goods arrive when a consignment has been selected for physical control [2]. Dutch customs adds the choice of the place of control and, for AEOS, mutual recognition with third countries [8].

AEO is not mandatory. Revenue lists manufacturers, exporters, freight forwarders, warehouse keepers, clearance agents, carriers and importers among those who may apply, and the applicant needs an EORI number [9]; see EORI number.

The five criteria

The Customs Code sets the criteria and the Implementing Regulation spells them out [1] [3]:

1. Compliance. Over the last three years no serious or repeated infringements of customs and tax rules and no serious criminal offences related to the business. This is checked for the applicant, for the person in charge of the applicant or in control of its management, and for the employee in charge of its customs matters [3].
2. Records. An accounting system that allows audit-based customs control and keeps an audit trail; customs records that are part of the accounting system or can be cross-checked with it; a logistical system that tells Union goods from non-Union goods; internal controls that catch errors; and procedures for archiving [3].
3. Financial solvency. No bankruptcy proceedings, customs duties and other import charges paid over the last three years, and enough financial standing for the business, with no negative net assets unless they can be covered [3].
4. Practical standards of competence, for AEOC. The applicant or the person in charge of its customs matters has at least three years of practical experience in customs matters, meets a European quality standard for customs, or has completed recognised customs training. Contracting an AEOC for your customs matters also meets the criterion [3]. German customs currently checks only the three years of experience, because no quality standard has been set and no training body has been recognised in Germany [4].
5. Security and safety, for AEOS. Protected buildings, access control, secure handling of goods, business partners who secure their part of the supply chain, screening of staff in security-sensitive positions, security procedures for external service providers, awareness training, and a named contact person for security questions [3].

Where to apply

The competent authority is the customs authority of the place where the applicant's main accounts for customs purposes are held or accessible, and where at least part of the activities covered are carried out [1]. A business makes one application for all its permanent business establishments in the EU, together with a self-assessment questionnaire [2].

• Germany. The application goes, electronically where possible, to the Hauptzollamt in whose district the applicant's main accounting is kept [5].
• Netherlands. The application goes through the EU Customs Trader Portal, with eHerkenning to log in. It has three parts: the application, the self-assessment questionnaire and a signed management statement, the last two sent together as one zip file. An authorised director signs [6].
• Ireland. Revenue asks you to complete the self-assessment questionnaire first, then to apply electronically through the EU Trader Portal for eAEO, using a ROS registered device [9].

The Commission's AEO page links to a search of the EU's authorised economic operators and to the national AEO contact points [10].

How long the decision takes

Customs check within 30 days whether the application can be accepted, then decide within 120 days of acceptance [1]. The decision period can be extended by up to 60 days [2]. Dutch customs informs the other member states within 7 days of a complete application, and adds 30 days when it needs more information [6]. The authorisation takes effect on the fifth day after the decision [2].

Expect a visit. Dutch customs visits every company that applies and speaks to the management, the people who did the self-assessment and the person responsible for security policy [7]. Revenue's evaluation always includes a visit to the premises [9]. Dutch customs does not accept an application filed less than three years after it revoked an earlier AEO authorisation of the applicant [7].