3 Takeaways from the Budget and Authorised Economic Operator Status

Posted by Matt Springate
Blog originally posted on 09/11/2018 03:00 AM

The Budget and Authorised Economic Operator Status

The presentation of the government’s budget before Parliament has always been an interesting affair. The perfunctory annual photo of the Chancellor of the Exchequer standing in front of Number 11 Downing Street with the red briefcase containing the Government’s budget for the year always seems to make a dull affair more interesting.

However, for those of us in the trade community that are in the midst of continually scanning news articles to understand the most recent state of play with Brexit, there was an interesting kernel in this year’s budget; mention of decreased processing times in the UK for Authorised Economic Operator (AEO) applications.

In the “Global Britain” section of the document, the budget states that “Businesses will be able to become customs trusted traders (including ‘Authorised Economic Operator’) in half the time it currently takes, as part of the UK’s aim to be at the cutting edge of global customs administration. HM Revenue and Customs will implement the improvements within 2 years.” This is mentioned as a way to “enhance the UK border experience”.

In practicality, this means that an application process that now takes 120-150 days to complete will, within two years, take 60-75 days.

Traders can understand three implications of this statement:

  1. Authorised Economic Operator status is here to stay in the UK post-Brexit.
  2. The UK government sees Authorised Economic Operator as a facilitation program that will increase the efficiency of goods moving across borders.

And finally…

  1. If you are not Authorised Economic Operator licensed now – get Authorised Economic Operator licensed.

If you are embarking down the road of becoming Authorised Economic Operator, and need some support understanding the requirements, benefits, and implications, don't hesitate to reach out to us. Let us handle the details. 

European customs valuation

Topics: Europe, AEO

Blog originally posted on 09/11/2018 03:00 AM

Matt Springate

Written by Matt Springate

As Principal for Tradewin’s US consulting practice, Matt brings extensive experience in working with importers and exporters to perfect their compliance operations. He specializes in duty recovery programs, preferential trade agreement qualification, tariff classification, prior disclosures, and audit support. Preceding this role, Matt was Principal of Tradewin’s European practice for five years, based in the United Kingdom. There, he managed a team of consultants across multiple European countries providing both tactical and advisory services for customers. Prior to relocating to the UK, Matt served as Tradewin’s Manager of U.S. Duty Drawback services, and as an Advisory Services Consultant. Matt holds a Master of Arts degree in Diplomacy and International Commerce from the University of Kentucky and a Bachelor of Arts degree in Political Science from Furman University. He is a Licensed Customs Broker and is IATA/FIATA Certified. Matt is based in Boston, Massachusetts.