Acquiring an authorization, or as some would say, a certification proves that you have mastered a particular ability. You have spent time studying, understanding, and developing a skill set and are now authorized to apply that skill. You work towards these certifications throughout your life -- be it your Boy/Girl Scout badges, school diplomas, or your driving license.

For traders within the European Union or the UK, acquiring an AEO authorization is the cherry on top of running their international supply chain and customs-related operations. It is a seal of approval from the Customs Authorities that they can be a trusted party within the international supply chain. 

The direct benefits of having AEO status are for companies seeking:

1. Periodic self-assessment requirements, instead of ad hoc reviews performed by the different Customs Authorities and/or teams overseeing the supply chain.
2. Fewer physical or document-based controls,
3. Allowance to have physical controls take place at a specific location,
4. Application for additional Customs procedures is simplified once the authorization is granted, allowing for more flexibility in solutions around supply chain needs.

Each year, we have tracked how many companies per country have acquired the AEO status and maintained it. Our goal was to have a better understanding of the importance of the program in Europe and provide data towards answering questions such as, is AEO certification being promoted by the customs authorities, and are companies seeing the benefits of becoming AEO certified? 

Learning the direct benefits of being AEO-certified is useful in determining if applying for this authorization is viable for your company's overall success. For many, the general conclusion is that the AEO program is relevant, and companies and countries are investing in the program. Countries that stand out are the Czech Republic, Greece, Lithuania, Ireland, and Romania, which have more than doubled the number of businesses holding the AEO status between 2016 and 2022. 

In addition, upon reviewing the type of companies that have become AEO certified, we noticed that a great number of the largest household name retailers benefit from the program. This indicates that AEO authorizations are not just for a select group of companies but for anybody who trades and interacts with the Customs Authorities. 

The benefits of AEO and the program's growth indicate that the program is as relevant as ever. The AEO procedures set clear goals and guidelines for employees about how to execute their work and to understand how to be compliant with the regulations. This, in turn, creates the foundation for the companies with an AEO authorization to keep growing and to keep ahead of the changing regulations and environments in International Trade.

Please contact one of our consultants to see how Tradewin can support acquiring an AEO authorization. 

*Number prior to UK leaving the European Union.

Interested in other AEO programs? In China, as of September 2022, AEO has helped enterprises benefit from over 40 China government departments. 

Read part 2: How the Authorized Economic Operator (AEO) Program Can Make You a Better Company.

Read part 3: Want to Apply for a Customs Procedure: Are You AEO-Ready?