Authorized Economic Operator – Obtaining Status in Ukraine

Obtaining the status of an “Authorized Economic Operator” (AEO) is an important step for companies involved in international trade. This status is granted to companies that meet certain security standards and ensure a high level of compliance with customs rules.

What is the Authorized Economic Operator Status?

The “Authorized Economic Operator” (AEO) status is an international standard designed to promote security and streamline customs processes for companies engaged in international trade. This status is established by the World Customs Organization (WCO) Customs Code and implemented at the national level in accordance with the national legislation of each country.

Types of AEO Status

Main types of AEO status:

• Export/Import (AEO-C). Designed for companies involved in the export and import of goods. They typically must meet high standards of security, equipment, and customs control procedures.
• General (AEO-G). Companies that obtain this status must fulfill a wide range of criteria regarding security, financial stability, and customer service. This type of AEO allows for extended privileges and expedited processing times.
• Logistics Operator (AEO-LO). Granted to companies engaged in transportation and logistics services. Enterprises must meet safety and supply chain management efficiency standards.
• Manufacturer (AEO-M). Manufacturing companies producing goods can obtain AEO-M status. For this type of AEO, compliance with safety and production control requirements is crucial.
• Origin (AEO-O). This status is intended for companies declaring the origin of goods. Obtaining this status simplifies procedures related to determining the origin of goods.

Who Can Obtain AEO Status

Authorization as an economic operator can be obtained by various participants in the supply chain, including:

• Goods manufacturers;
• Logistics companies;
• Trade intermediaries;
• Manufacturers declaring the origin of goods;
• Exporters-importers;
• Transport companies.

Advantages and Benefits of AEO Status for Business

Key benefits of the Authorized Economic Operator status:

• Safety and reliability. Companies obtaining AEO status must meet high standards of safety and reliability in their logistical and supply chains.
• Simplified customs procedures. AEO-status companies have the right to simplified customs procedures, making customs clearance easier and reducing the time required for goods to pass through the border.
• Priority processing and other privileges. AEO companies can benefit from priority processing during customs control, as well as other advantages, such as fewer customs inspections and mandatory guarantees.
• International recognition. AEO status is internationally recognized, facilitating customs operations when conducting business in different countries.
• Risk reduction. AEO status holders usually undergo fewer inspections by customs authorities, as companies with this status are considered less risky.

Procedure for Obtaining Authorization

To obtain the “Authorized Economic Operator” status, the following steps must be followed:

1. Preparation for application. The enterprise must assess its readiness and compliance with safety standards, financial stability, and other AEO requirements.
2. Application submission. An application for AEO status is submitted to the State Customs Service.
3. Compliance assessment. State Customs Service employees conduct an assessment of the enterprise’s compliance with requirements, including safety, financial stability, customer service, and other aspects.
4. On-site inspection. Typically, an on-site inspection is conducted to confirm that the enterprise’s systems and procedures comply with the standards.
5. Granting of status. After successfully completing the procedures, the enterprise receives AEO status.
6. Maintenance and audits. The enterprise must maintain and improve its security systems and other aspects in accordance with requirements, and periodic audits may be conducted to support AEO status.

If you need to obtain the “Authorized Economic Operator” status, please contact Dextra Law. Our experts work comprehensively, ensuring results and compliance with all current legislation.