The European Union introduced the Union Customs Code (UCC) Act in 2013, which will take effect on May 1, 2016 but there are still some businesses that aren’t up to speed with what this means. The purpose of the Act is to improve business transactions among EU member countries by automating business processes and the new Act has various implications for UK companies that trade with EU members. UK companies looking to trade in this way must have discussions with their buyers/suppliers to determine if they qualify for the new automated process. However, companies can benefit from the UCC Act by attaining Authorised Economic Operator (AEO) status. All UK companies that are at all involved in international trade can apply and get AEO certification including clearance agents, importers, exporters, manufacturers, carriers and freight forwarders. [Read more…]
The latest European Customs Code is due to apply from May this year and freight forwarders in particular are expressing concerns about how this might affect them, according to an article in Air Cargo World. This new code is intended to streamline the customs clearance process with the introduction of electronic data exchange to aid transparency and user-friendliness. The electronic system should facilitate improved alignment and data flow between customs authorities. However there have been some potential pitfalls flagged up.
For those who may not already be aware of this, AEO (Authorised Economic Operator) status is one of the internationally recognised quality marks that indicate that your role in an international supply chain system is secure. And contrary to what some business owners think, AEO accreditation isn’t mandatory. However, it allows a business quicker access to particular simplified customs procedures and in many cases, AEO certification gives the exclusive right to ‘fast-track’ your shipments and in the process, bypass a couple of ‘arduous’ safety, customs and security procedures. [Read more…]
Why are so few UK companies ready for International Trade Changes? This is quite a troubling question considering the apathetic response throughout the UK and Ireland towards the take-up of the AEO scheme. Countries like Germany and Holland have seen companies embrace the scheme in their thousands, compared to the low hundreds in the UK.
When it comes to AEO certification, it’s not all about the financial and customs declarations side of things. Whether you’re looking at AEO as a forwarder or an importer/exporter, the security of your operation needs to be scrutinised too. This leaves many people worried about how best to go abut evaluating their readiness for application, but there’s one simple tool that can really help you get a handle on where you’re compliant and where you may be able to improve, and that’s the process flow chart.
The dynamics shaping global trade have necessitated the need to control the flow of international trade and contain the security threats that come with it. This is just one of the reasons AEO is in high demand. An AEO certified business is a business that has met the strict criteria defined by the customs authorities related to its operational functions and their interaction with the customs processes and procedures, and one of the most important parts of AEO certification is the security your business can provide to the supply chain.