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Authorised Economic Operator (AEO)

1. What is Authorised Economic Operator Program

The Authorised Economic Operator (AEO) Programme is a voluntary compliance management programme, through which a Customs Administration assesses, awards, facilitates the benefits and monitors compliance to the standards on a continuous basis of the operators within the program.
The AEO was previously referred to the Preferred Trader Programme (PTP) and the name has been changed in order to present the programme using its internationally recognised term. The AEO programme is based on standardized criteria and requirements which operators are expected to meet in order for them to be recognised as either compliant on customs and tax requirements or on safety and security requirements.

Its implementation within Eswatini Revenue Service (ERS)

For ERS to achieve better results in the drive for improving voluntary compliance, it is important to build close relationships and form partnerships with businesses. It is for this reason that the organization is undertaking initiatives that will contribute to an environment that will make business more competitive, which ultimately grows the country’s economy. Such initiatives aims at reducing the costs that a business will incur in its efforts to comply with the laws and regulations that are enforced.
Customs & tax compliance
Developing a strategy and meaningful benefits for rewarding high levels of compliance and enable the ERS to segment its traders and design interventions that are in line with the behaviour of each trader, thus optimising the use of resources while effectively carrying out the mandate of revenue collection, facilitation of legitimate trade and regulatory control.
Safety & security
AEO aims to enhance international supply chain security, facilitate movement of legitimate goods and encompasses various players in the International supply chain. AEO participants involved in global trade and covers economic operators authorised for customs simplification (AEOC), security and safety (AEOS) or a combination of the two.

2. What is the purpose of AEO?

AEO aims to
Ensure that traders understand their compliance requirements and assist them to develop their own internal controls and systems to ensure that they comply without being supervised
effectively promotes trade compliance and increase supply chain – safety and security in both the import and export environment
Develop a sustainable relationship between the Eswatini Revenue Service and its traders

Explain how ERS benefits and how the applicant benefits

Improved facilitation of goods through streamline processes at ports of entry
Reduced trade costs through expedited release and reduced controls
Reduced cargo theft and pilferage by improving the security of the bilateral supply chain.

3. What is an Authorised Economic Operator

Authorised Economic Operator known as AEO is a party involved in the international movement of goods in whatever functions that have been approved by or on behalf of national customs administrations as complying with World Customs Organisation or equivalent supply chain security standards.
A full AEO program contains both a Customs Compliance part and a Safety and Security module. Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors.”

What are the AEO criteria and requirements

ElementsLevel / Category
Customs ComplianceSafety & Security
User requirements
Appropriate record of customs compliance. (Provide proof of compliance with Revenue obligations, Tax and Customs legislation, policies and procedures and should not have been convicted of an offence involving fraud or dishonesty)
Satisfactory system for managing commercial records. (be able to communicate electronically with Customs, or alternatively make use of a licensed clearing agent who can perform this functionality on their behalf
Sufficient Customs Knowledge (the appointed contact person has sufficient knowledge of customs matters and has successfully achieved at least 70% in the test for knowledge)
Good financial solvency (For the previous three years, Customs duties and payments of taxes are in good order showing good compliance and no outstanding debts. The applicant is not subject to insolvency proceedings, can demonstrate sufficient financial resources to meet their obligations)
Appropriate record of customs compliance (Provide proof of compliance with Revenue obligations, Tax and Customs legislation, policies and procedures and should not have been convicted of an offence involving fraud or dishonesty)
Satisfactory system for managing commercial and transport records. (the physical movement of goods is very important and any logistical system including transport records should be in place)
Sufficient Customs Knowledge. (three years proven experience in customs matter)
Good financial solvency (For the previous three years, Customs duties and payments of taxes are in good order showing good compliance and no outstanding debts. The applicant is not subject to insolvency proceedings, can demonstrate sufficient financial resources to meet their obligations)
Education, training and awareness (Applicant to develop mechanisms for the education and training of personnel regarding security policies, recognition of deviations from those policies and understanding what actions must be taken in response to security lapses)
Information Exchange, Access and Confidentiality (to secure sensitive information, the applicant must develop or enhance the means by which entrusted information is protected against misuse and unauthorized alteration.
Security and Safety criteria (It is expected that an AEO company will have to undertake documented security risk and threat assessments in relation to its international supply chain activities on a regular basis)
User benefits
Reduced documentary requirements for clearance of goods
Expedited clearance of entries
Flexible inspection arrangements
Client Relationship Manager
Reduced documentary requirements for clearance of goods
Expedited clearance of entries
Flexible inspection arrangements
Mutual recognition of an Economic Operator
Client Relationship Manager

5. Who can apply for AEO

The applicant must be a legal entity involved in Customs and tax related activities as part of the International supply chain.
The applicant must conduct a business in Eswatini and must have a Taxpayer identification Number (TIN) and must have been established for a minimum of 3 years.

6. Pillars

The AEO concept is based on the Customs-to-Business partnership developed by the WCO which is based on trust and cooperation.
Customs and AEO should consult regularly on matters of mutual interest, including supply chain security and facilitation measures in a manner that will not jeopardized enforcement activities.
The AEOs should maintain their compliance to the standards of the accreditation criteria at all times since failure can result to suspension.

AEO External Guide and Procedure - 2022-02-02

AEO application form

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About ERS

The Eswatini Revenue Service (ERS) is a semi-autonomous revenue administration agency, established through the Revenue Authority Act No. 1 of 2008. It operates within the broad framework of Government but outside of the civil service.

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