Introduction

Introduction to the handbook.

1.1 Scope of this handbook

This Technical Handbook will outline:

  • the UK Authorised Economic Operator programme
  • who the UK AEO scheme is aimed at
  • eligibility
  • benefits

The UK AEO Programme is based on the internationally recognised World Customs Organisation (WCO) SAFE Framework standards, which aim to enhance the international supply chain security and facilitate legitimate trade.

AEO is not mandatory. Applying for AEO is a commercial decision that each business needs to assess by considering the benefits against the costs of applying for and maintaining AEO status.

The purpose of this handbook is to ensure a common understanding for economic operators applying for AEO. It should work as a tool to ensure AEO applicants are fully aware of the requirements of AEO and understand their responsibilities to the UK AEO Programme.

1.2 How to use the Authorised Economic Operator  technical handbook

Sections 1 to 6 of the technical handbook provides general information about the UK AEO programme including the benefits of AEO status and mutual recognition by other countries’ customs authorities.

Refer to section 7 to 11 for the AEO criteria requirements. Section 12 is on maintaining the standards for the criteria and how to maintain the AEO standards.

1.3 Authorised Economic Operator Background

The events in the USA on 11 September 2001 significantly raised the profile of international security issues, not only for counter terrorism purposes but also in the fight against organised crime and other threats to society. The aim of AEO, together with the Customs-Trade Partnership Against Terrorism (C-TPAT) in the USA and the Safe Framework of Standards in the WCO, is to provide businesses with an internationally recognised standard that will demonstrate that they operate within a secure supply chain and their internal customs controls and procedures are efficient and compliant.

1.4 Types of Authorised Economic Operator status

There are two types of AEO status available:

  • Authorised Economic Operator Customs Simplifications (AEOC) - issued to any business established in the UK that fulfils the criteria of customs compliance, appropriate record keeping standards, financial solvency and practical standards of competence directly related to the activity carried out

  • Authorised Economic Operator Security and Safety (AEOS) - issued to any business established in the UK that fulfils the criteria of customs compliance, appropriate record keeping standards, financial solvency, and appropriate security and safety standards directly related to the activity carried out

Businesses may hold both AEOC and AEOS  at the same time. This is sometimes referred to as Authorised Economic Operator Full (AEOF).

The AEO programme is open to all economic operators, including sole traders, individuals, small and medium size businesses who are involved in the international supply chain.

1.5 Aim of the Authorised Economic Operator programme

The aim of AEO is to provide businesses with an internationally recognised standard which will indicate that their role in the international supply chain is secure and their customs controls and procedures are efficient and compliant.

An economic operator with AEOS status implies that as well as being reliable in the traditional financial and customs terms, they are also compliant in respect of security and safety standards. They can therefore be considered as a ‘secure’ trader and a reliable trading partner.

An economic operator with AEOC status benefits from the various simplifications specifically provided for AEOC authorisation holders under customs legislation.

Once they have been authorised a business is responsible for ensuring they maintain the appropriate AEO standards and remain eligible for AEO.

1.6 Preparation

Thorough preparation is the key to success. Businesses need to be sure that AEO is for them and are committed to AEO compliance before they apply.

Depending on the type of AEO applied for, the company’s business activities and business model, the company should have appropriate organisational measures in place related to the AEO criteria, aiming at ensuring that risks linked to their customs activities may be identified and avoided and or minimised.

To understand what is required to become an AEO, potential applicants should:

  • read and understand the criteria and checks involved
  • have an EORI number
  • ensure all the relevant persons/departments within the business are involved when completing the AEO application
  • confirm the management of the business support the AEO application
  • look at the information you need to apply. More information can be found at ‘Find out what types of Authorised Economic Operator status you can apply for’

1.7 Legislation

Since 1 January 2021 AEO authorisations in the UK have been governed by the following legislation:

Authorised Economic Operator Customs Simplification

  • the Taxation (Cross-Border Trade) Act 2018 (TCTA)
  • the Customs (Import Duty) (EU Exit) Regulations 2018 (CIDEER)

Authorised Economic Operator Security and Safety

  • the Union Customs Code (UCC) Regulation (EU) No 952/2013, Commission Delegated Regulation (EU) 2015/2446 (The Delegated Act) and Commission Implementing Regulation EU 2015/2447 (The Implementing Act) as assimilated law under the European Union (Withdrawal) Act 2018 and amended by

  • the Customs Safety and Security Procedures (EU Exit) Regulations 2019

For AEOC and AEOS in relation to Northern Ireland, the UCC, the Delegated Regulation and the Implementing Regulation remain applicable under The Windsor Framework and The European Union (Withdrawal) Act 2018.

1.8 Contact Points for Enquiries

You can contact HMRC by email: aeoapplications@hmrc.gov.uk or by Telephone: 0300 322 9451.