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.

The AEO certification is divided into levels:

• 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.”

4. What are the AEO criteria and requirements

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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