Authorized Economic Operator (AEO)
AEO is a status of customs trust in a company that gives simplifications in customs clearance. For regular importers and exporters it is a way to speed up the border and reduce the number of inspections. Let us break down how AEO works in Ukraine.
What AEO is and why
The authorized economic operator mechanism was introduced by Law No. 141-IX amending the Customs Code and is analogous to the one operating in the EU. It is a “certificate of trust”: customs treats an AEO as a reliable partner and gives it benefits.
Two statuses: AEO-C and AEO-B
| Status | Essence |
|---|---|
| AEO-C | Simplification of customs procedures |
| AEO-B | Reliability and security |
| Both | Can be obtained at the same time |
Benefits and simplifications
An AEO gets fewer customs inspections, priority in clearance, simplified procedures and the option to clear at its own premises. For companies with a large flow this saves time and money on every batch.
Conditions for obtaining
To obtain the status a company must comply with customs and tax legislation, have a transparent accounting system, financial solvency and practical competence standards. For AEO-B, supply chain security standards are added.
Authorization procedure
AEO authorization is granted free of charge and is valid indefinitely. Customs checks compliance with the criteria and grants the status, then periodically monitors its observance. Preparing the accounting and security system is the main part of the preparation.
The AEO register and EU recognition
All companies with the status are entered into the Unified State Register of AEO on the State Customs Service website. The mechanism is built on the EU model with the prospect of mutual recognition: Ukrainian AEOs will be able to enjoy benefits abroad too.
Who AEO suits
The status is advantageous for companies with regular shipments, a large volume of clearances and transparent accounting. For one-off deals it is usually not needed. Whether the preparation pays off can be assessed at foreign trade consulting.
AEO and the customs broker
Even with AEO status a company still needs to draw up declarations correctly and keep records. Clearance is handled by the customs broker, and the general rules of customs control are in customs control.
Frequently asked questions
Help with AEO
Trans-Hope helps assess a company’s readiness for AEO status, prepare the accounting and security system and carry out customs clearance after obtaining the status. Send a request — we will suggest where to start.
