Supply Chain Security & Safety
Since November 2014 INTRACOM DEFENSE has been certified as an AEO (Authorized Economic Operator) – “customs simplifications/security and safety” (AEO-F) as defined by the European Union regulations. An AEO who meets the security and safety criterion is considered to be a secure and safe partner in the supply chain. An AEO is deemed reliable in the context of his customs related operations, and therefore, is entitled to enjoy benefits throughout the EU.
European Union has established a risk management framework common to all Member States to promote protection in customs controls for goods brought into or out of the customs territory of the Community. Such a framework ensures a harmonized application of common criteria and requirements.
The economic operator that meets common criteria is granted the status of authorized economic operator (AEO).
The criteria for granting the status of authorized economic operator include:
• Compliance with customs requirements,
• A satisfactory system of managing commercial and transport records
• Proven financial solvency, and
• Security and safety standards
Recognizing the importance of:
• Demand for Securing Global Trade
• Growing demands for trade facilitation
• Advance of globalization
• The fact that International supply chains become increasingly sophisticated,
the World Customs Organization (WCO) advocates the AEO program in different economies and promotes mutual recognition arrangements (MRA) of the AEO programs between interested economies, about which the business sector has strong expectations.
Many customers, especially in USA, are now requiring their suppliers to be strictly compliant with security regulations: being AEO is a good way to show this compliance.
Mutual recognition of AEO status is a key element to strengthen and assist end-to-end security of supply chain and to multiply benefits for traders.
The objective of mutual recognition of AEO status is that one customs administration in one country:
• Recognizes the AEO authorization issued under the other program and
• Agrees to provide substantial, comparable and, where possible, reciprocal benefits/facilitations to the mutually recognized AEOs.
The specific agreed benefits are contained in each individual MRA, but in general the benefit of fewer physical and documented based controls is always considered. Avoiding duplication of security and compliance controls facilitates legitimate trade.
On 4 May 2012, the European Union (EU) and the United States (U.S.), through a decision of the EU-U.S. Joint Customs Cooperation Committee (JCCC), agreed on mutual recognition of the Customs-Trade Partnership Against Terrorism (C-TPAT) program in the United States (U.S.) and the Authorized Economic Operator (AEO) program of the European Union (EU). According to the JCCC decision, the EU and the U.S. will take favorably into account in their risk assessment, for the purpose of the conduct of inspections or controls, the respective membership status of certified trusted traders. The favorable treatment provided by mutual recognition will result in lower costs, simplified procedures and greater predictability for transatlantic business activities.