Criteria and Conditions of Authorisation or Approval: Financial solvency criteria for all AEOs
The financial solvency criteria detailed in this section must be fulfilled by all AEO applicants.
Where financial solvency obligations are fulfilled through the provision of a mandatory guarantee this is stated in the criteria matrix for the particular regime or procedure. The specific solvency criteria (detailed below) are not replicated in the regime or procedures matrix as they will be assessed when the application for the mandatory guarantee is submitted instead.
|Financial Solvency of applicants|
|AEO Criteria as specified in the legislation||UK Explanation of the criteria|
|Financial solvency, which shall be deemed to be proven where the applicant has good financial standing, which enables him or her to fulfil his or her commitments, with due regard to the characteristics of the type of business activity concerned;||Consistently good financial standing sufficient to meet its financial commitments, over the last three years.|
|The applicant is not subject to bankruptcy proceedings;||Any insolvency or bankruptcy proceedings been served on the company in the last 3 years|
|During the last three years preceding the submission of the application the applicant has fulfilled his financial obligations regarding payments of customs duties and all other duties, taxes or charges which are collected on or in connection with the import or export of goods; and||Have a good payment history with the department, if the applicant is in debt to the department at the time of the application they will not qualify guarantee reductions.|
|The applicant can demonstrate, based on the records and information available for the last three years preceding the submission of the application sufficient financial standing to meet his obligations and fulfil his commitments with due regard to the characteristics of the type and volume of the business activity, including having no negative net assets, except if they can be covered;||Demonstrate on-going liquidity with sufficient assets to cover their financial comments. Able to demonstrate that any negative net assets can be covered.|
The criteria above should be verified using the Proven Financial Solvency Guidance. Any applications where there are identified solvency risks or the liquidity of an applicant is unclear, referrals should be made to the Local Compliance accountants for advice.