Posted in Customs
- Who is eligible for the Regional AEO Program?
Any company that is registered in any one of the EAC Partner States and has been in operation for at least one year and its business plays a role along the international trade supply chain.
- Where do I apply for the program?
Application forms can be obtained from the Customs Office in the Partner State where your business is registered. In the future, the application forms will be available online. Fill in the form and return to Customs office.
- How long does it take to process my application?
If the application is properly filled and all the required attachments are provided then process should take a maximum of 60 days from the time of acceptance.
- What are the real benefits of being an AEO?
There are many benefits of becoming an AEO and there are even more benefits of being a regional AEO. These include; good reputation for your company – recognition as a low risk reliable business, expedited processing while at Customs, cost savings, increased turnover and profitability. Please contact Customs office for further information.
- How much is the application fee for becoming AEO?
The Application for AEO status is voluntary and free.
- How do I get recognised in other Partner States when I transact business in a Partner State other than the one I registered from?
The Customs IT system in each Partner State has been equipped with an identifier that can tell an AEO transaction. However, should it be necessary, please feel free to introduce yourself to the Customs officers at any service point
- For how long does the certificate remain valid?
Once granted the AEO status, you will be issued with a certificate which is valid for 3 years. After the three-year period, your performance will be evaluated, and if found satisfactory, then the certificate will be renewed. If the performance is not satisfactory then your status may be suspended or revoked.
- After I get the AEO Status, can I opt out?
The AEO is free to opt out of the program at any time upon giving notification to the Commissioner Customs.
- I don’t transact business with other Partner States, why should I bother with becoming a regional AEO?
The AEO status does not only grant you benefits within the boundaries of EAC, with MRAs, the benefits extend to other countries and therefore an AEO receives recognition even when transacting business outside EAC.
- Who do I contact in case I have matters for the attention of Customs
In each Partner State, the Customs administration has a contact point. Please see the list under contacts
Posted in Customs
Background
The EAC regional Authorized Economic Operator (AEO) program was conceived by the Commissioners of Customs of the East African (EAC) countries of Burundi, Kenya, Rwanda, Tanzania and Uganda in 2006 after the adoption of the World Customs Organization (WCO) SAFE Framework of Standards by the WCO Council in 2005. The Commissioners’ decision was in line with the EAC Protocol that requires the EAC region to set up a Customs Union as one of the building blocks for regional integration. The decision was also prompted by the consideration that since the AEO program is about trade facilitation and the security of the supply chain, traders and Customs stood to gain more if the whole supply chain within the region is covered under one program.
The AEO program is a WCO program that is being implemented worldwide. It aims to enhance Customs efficiency in the face of increasing volumes of trade and the increasing vulnerability of the international trade supply chain to security threats as well as the use of the international trade supply chain as a conduit for high security risk materials. The AEO program tackles these challenges by shifting the perspective, so that instead of focussing on the goods themselves, Customs focus on the traders. The compliant traders are therefore given the AEO status which means they are low risk companies and can therefore be trusted by Customs. This implies that Customs can handle the consignments of such companies with less controls compared to others. That way the AEO program is an instrument for growing compliance.
The EAC Customs administrations face the same problems just like other Customs administrations around the world. After all, international trade is always about goods moving from one country to another. The AEO program is therefore looked at as one of the programs that will help Customs within the EAC improve efficiency and effectiveness in securing the international trade supply chain while at the same time facilitating trade.
The AEO program is designed to facilitate and enhance the experience of the complaint trader when undergoing Customs clearance processes.
The simplified procedures for AEOs has had tremendous effect with regard to reducing the cost associated with the movement and clearance of goods. The EAC is currently pursuing mutual recognition with other trading blocs, a move which will lead to EAC AEOs enjoying more benefits when trading outside EAC region.
Joining the Regional AEO program therefore opens the doors for unlimited opportunities and the key to unlock the potential of your business. It is the Customs way of supporting business and for business to support development in the EAC region
How it Works
The EAC Regional AEO program covers and is applicable in all the Partner States namely Burundi, Kenya, Rwanda, Tanzania and Uganda save for the Republic of South Sudan which was not a member Partner State of EAC at the commencement of the programme. However, plans are underway to operationalize the program in the Republic of South Sudan.
The regional AEO program operates under a common set of criteria, instruments, authorisation process, benefits and monitoring system in all the Partner States.
An applicant for AEO Status, irrespective of the Partner State therefore goes through the same set of criteria like her/his counterparts in other Partner States.
The Customs experts who administer these criteria are trained together to ensure harmonisation and uniformity in process.
Authorization Process
The authorisation process can be summarised into a four-stage process as below;
- The application is lodged with the national Customs administration, which takes it through the Authorisation process.
- Once satisfied that the applicant qualifies, the national Customs administration checks compliance records of the applicant with the Customs administrations in the other Partner Sates and approves the applicant’s application.
- The applicant is invited to sign a Memorandum of Understanding (MoU) which is done by the Customs Administration on behalf of EAC.
- EAC Secretariat issues a certificate to the applicant.
Benefits
General
- Recognition as low risk company
- Faster Clearance procedures with
Customs
Benefits offered by Customs
- Automatic passing of declaration
- No physical examination of goods, except
for random or risk based interventions.
- ECTS requirement waiver where
applicable
- Expedited payment of refund claim
- Reduced Customs security where
applicable
- Priority to participate in Customs
initiatives
- Guaranteed renewal of Customs license
- Priority treatment in cargo clearance
chain
- Waiver of movement bond requirements
for AEO
- Self-management of bonded warehouse
