Business

The Authorised Economic Operator Programme: Procedures and process

Customs House Weekly

Wednesday, October 18, 2017



The Jamaica Customs Agency (JCA), in keeping with international standards, established the Authorised Economic Operator (AEO) as part of its strategy to ensure that the process involving the importation and exportation of goods are done efficiently and effectively along the supply chain.

What is the Authorised Economic Programme?

The AEO programme facilitates the trading of goods along international borders and involves a variety of participants within the supply chain, who all play a key role in ensuring its success.

Who is an Authorised Economic Operator?

An AEO is a party involved in the international trading and movement of goods within the framework or standards outlined by the World Customs Organization (WCO) or equivalent supply chain security standards, and includes economic operators such as manufacturers, importers, exporters, brokers, carriers, consolidators, terminal operators, integrated operators, warehouses and distributors, etc.

Who can be Part of the Programme?

• Exporters that export at least one full container load per annum

• Importers that import a minimum of six containers per annum

What are the Requirements for the AEO?

• Be in business for a minimum of three years

• Must declare accurate values

• Must comply with Government Regulatory Agencies

• Must complete the mandatory security requirements as follows:

• Designated officer to oversee AEO programme

• Business partner security

• Personnel security

• Container security

• Storage & control of raw material (manufacturers)

• IT security

• Physical access security

What are the Benefits for the Company?

• Fewer delayed shipments

• Improved customer loyalty

• Improved security & communication among members along the supply chain

What are the Overall Benefits of the AEO Programme?

• Simplified Customs Procedures

• Expedited Clearance

• Alignment of process flows with international best practices

• Reduced risks along the supply chain and deploying resources to high- risk areas

• Alignment of process flows with international best practices

• A designated AEO account manager is assigned as point of contact for the JCA and the other agencies involved in international trade

• Mitigated risks along the high-risk areas

• Mutual recognition agreements with other Customs agencies

What does the Process Entail?

• Completion of the application form at www.jacustoms.gov.jm

• Assigned AEO account officer makes contact with entity

• Review & risk assessment of applicant is done

• Validation process is conducted (60-day & 90-day)

• Completion of report

• Review undertaken by AEO committee for recommendations to acceptance/denial

• Approval by the Commissioner of Customs

What are the Penalties for Non-compliance?

Non-compliance of the AEO Memorandum of Understanding will result in one of the following:

• Written warning to entity

• Suspension

• Revocation of AEO status.

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