'Authorised Economic Operator' qualitative leap in customs business in UAE: Report

DUBAI, 25th July, 2017 (WAM) -- The Authorised Economic Operator, AEO, programme is a federal partnership between Trade community and Customs, in which actors in the global supply chain can apply for AEO status to receive trade facilitation benefits and, at the same time, verify and increase their level of compliance and security. The programme already counts more than 25 members from across various industries in the UAE. The feedback so far received from the AEO member companies is encouragingly positive, labeling the economic programme as being hugely impactful on their business and trade performance through the UAE. It provides a modern and smart control strategy that develops and fosters security and compliance through the move from transaction-based controls to system-based controls. Processes, procedures, systems, competencies and security measures are verified by Customs at the company level. Dubai Customs is a significant partner in the operation of the supply chain, acting as a facilitator and regulator of trade, and currently needs to enhance work with the business community to respond in an appropriate and coordinated manner to address new and emerging supply chain security challenges. The programme covers both security and compliance, and applies to all customs procedures. The concept is a fundamental pillar to make the UAE the leading global trade hub, thus it is vital to build the best AEO program in the world and ensure the successful implementation of UAE - AEO concept. Dubai Customs is a significant partner in the operation of the supply chain, acting as a facilitator and regulator of trade, and currently needs to enhance work with the business community to respond in an appropriate and coordinated manner to address new and emerging supply chain security challenges. It covers both security and compliance, and applies to all customs procedures. According to the surveyed businesses, speeding up customs transactions and cutting down on trading costs for customers were among the direct benefits of the programme which started operationally in the end of 2016. The AEO concept is a global standard as defined by the World Customs Organisation, WCO, SAFE Framework of Standards to Secure and Facilitate Global Trade. More than 70 countries have implemented an AEO programme and a significant number of countries are planning or are currently in the process of doing the same. Over 90% of the global trade is anticipated to flow through the AEO programme in the near future. Additionally the AEO concept is one of the foundations of the Trade Facilitation Agreement, TFA, developed by the World Trade Organisation, WTO. Once the TFA has been ratified by two-thirds of the member countries, an operational AEO programme will be mandatory for all 162 members according to international law.