AEO Certificate

The term AEO certificate comes from the English designation “Authorized Economic Operator.” Translated, it means an approved economic operator. Companies holding an AEO certificate are considered particularly reliable in the field of customs clearance. They can benefit from various simplifications that make customs procedures faster and more cost-effective. In addition to the advantages for the companies involved, the EU also aims to secure international supply chains against terrorist threats, from the producer of goods all the way to the end customer.

Companies apply for the AEO certificate at the responsible Main Customs Office (HZA) in whose district the company’s main accounting department is located. The AEO contact office in Nuremberg is responsible for coordination between member states during the authorization process. This office becomes involved when the application review cannot be carried out within a single member state alone. Through the coordination office, the affected member states are included in a consultation procedure in which compliance with the authorization criteria is examined.

Advantages for AEO-certified companies include less frequent customs inspections as well as the possibility to influence the location where customs controls take place. The application process for simplified procedures is also made easier. When closing open export procedures, no supporting documents need to be submitted to the export customs office. The AEO certificate is a prerequisite for various procedural simplifications:

• In import procedures, the possibility of exemption from presentation through entry in the accounting records
• The option of centralized customs clearance
• Self-assessment procedures
• The possibility of being granted a comprehensive guarantee with a reduced amount for an incurred customs debt

The last point in particular can lead to significant cost savings.

In Germany, the application for an AEO certificate is submitted online to the responsible Main Customs Office (HZA) via the “Internet Application AEO” (IAEO) through the customs portal. All relevant documents, such as the self-assessment questionnaire and any additional required information, can be uploaded there in digital form. Submission in paper form is only possible in the event of a disruption of the portal.

In addition to submitting the self-assessment questionnaire and all required company documentation, the implementation of an internal control system (ICS) is of central importance when applying for AEO certification. The ICS maps all customs-relevant processes within the company and structures the handling of errors. Applicants can find further information in the EU guidelines on AEO certification. The customs authority must also be provided with a designated contact person who serves as the point of contact for security-related matters, whether these arise internally within the company or are raised by the customs authorities.

The applicant ensures that employees with responsibilities in security-relevant areas receive regular training in order to sharpen their awareness of security issues within supply chains. Employees must be informed about risks in international supply chains. Training measures to identify potentially suspicious cargo must be carried out. This applies to all individuals involved in the supply chain and should already be implemented before applying for the AEO certificate. The training measures must be sufficiently documented. Responsibility for these training activities may be assigned to an internal or external person or organization. The frequency of the training depends on changes in requirements and staff turnover within the workforce.

Procedures for employee training as part of AEO certification should be adapted to the size of the company. In very small businesses, verbal training may be carried out, but it must still be documented. Basic security requirements and general security procedures must be communicated during this training. A security acknowledgment signed by the relevant employees may also be recognized by the customs authorities. The intensity and frequency of security training must be adjusted depending on the employees’ area of responsibility and their potential impact on the parts of the supply chain covered by the AEO certificate. Using the Commission’s eLearning tool for the AEO certificate, applicants and employees can learn the relevant content.

Some aspects of the self-assessment questionnaire only apply to specific parts of the international supply chain. Depending on the type of AEO certificate a company is applying for, different criteria are relevant for approval. Questions that are not applicable to a company do not need to be answered. In such cases, it is sufficient to enter “not applicable” and provide a brief explanation as to why this area is not relevant for the company. This justification may relate either to the type of authorization being requested or to the specific part of the international supply chain in which the applying company is involved.

In principle, the AEO certificate relates to supply chains within the EU. However, the German government and the European Union are working to ensure that the certificate is also recognized in international agreements with other economic regions. So far, mutual recognition agreements have been concluded with China, the United States, Norway, Switzerland, Japan, and Andorra. If further bilateral agreements on the recognition of AEO standards are established, these countries will be published in the updated annex of the EU guidelines on AEO certification.