Cover Story
Fall 2018 / Issue 59
AUTHORIZED ECONOMIC
OPERATOR – NEW CONCEPT
FOR FASTER CUSTOMS OPERATIONS
Gjoko Tanasoski,
Director of Customs Administration
T
he process of globalization
has set new demands for
today’s corporate compa-
nies and their leaders. As
organizations continue to
expand and work in the global econ-
omy, companies face a dynamic
environment, subject to risks. The
global economy and the increasing
flow of goods has led to a change in
the role of both companies and the
customs authorities. The continuing
threat of global terrorism requires
companies to secure their assets
as they move through the supply
chain and the cooperative approach
between those involved in the supply
chain, as provided by the programme
i.e. the concept of Authorized Eco-
nomic Operator (AEO) is the right
approach to enhance the security in
this chain in general. We are witness-
ing larger use of regional free trade
agreements and further promotion
of regional economic integration. All
these features of the current situa-
tion affect countries, urging them to
build sound commercial environment
that needs to properly meet the eco-
nomic globalization. The importance
of trade facilitation, which is mainly
focused on simplifying customs pro-
cedures and improving the efficiency
of customs clearance of goods, has
been recognized by the government,
the companies and the public.
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AmCham Macedonia Magazine
Companies can show leadership
by investing in security that protects
their supply chain, while gaining
competitive advantage. On the other
hand, it is neither possible nor rec-
ommended for the customs author-
ities to inspect and control every
single shipment. Therefore, compa-
nies need to strengthen their proce-
dures and deal with new challenges
to prevent risk. This will not only facil-
itate the operation of Customs and
ensure more efficient management of
their time, but will also bring benefits
in terms of faster supply of goods
and services to their customers.
Securing and facilitating trade
can be achieved through mutually
beneficial partnerships between the
government and the private sector -
partnerships that provide significant,
measurable business advantages for
both parties, something which the
AEO concept precisely offers.
Since its “conception,” the AEO
concept has been gradually evolving.
The new Union Customs Code fur-
ther strengthened the position of this
concept, as it became apparent that
the AEO programme has many ben-
efits for both operators and customs
authorities.
The AEO concept is from a more
recent date. In order to fully realize
this concept, being one of the key
priorities of the Customs Adminis-
tration, we have developed a Strat-
egy for full alignment of the customs
legislation and promotion of the AEO
concept, the benefits for the busi-
ness community and the importance
of AEO for the region. This concept
has gained particular significance
with the ratification of the Additional
Protocol 5 to the CEFTA agreement,
covering this topic.
The World Customs Organisation
strongly supports the implementa-
tion of this programme under the
World Trade Organization’s Free
Trade Agreement (TFA) as a first step
towards the full implementation of
the AEO program. It should be noted
that the number of MRAs signed
and negotiated has substantially
increased over the past year, and
this positive momentum proves the
increased engagement of all relevant
stakeholders and provides grounds
for a harmonized approach of how
to achieve mutual bilateral and mul-
tilateral recognition agreements.
Common requirements and
mutual recognition are important
concepts for the global economy,
as they lead to supply chain effi-
ciency and reduce administrative
burdens for companies. For cus-
toms administrations, unified criteria
and cost-effective risk management
guidelines facilitate mutual recog-
nition and eliminate the need for
on-the-spot checks in each country
where the AEO applicant is active.
Mutual recognition envisaged by
the AP 5 does not require “simulta-
neous recognition” between all Cen-
tral European Free Trade Agreement
(CEFTA) parties, since recognition
is conditioned by compliance with
EU legislation. In other words, the
establishment and implementation
of a national AEO programme of a
CEFTA party could be recognized
by other CEFTA contracting parties
only if the relevant CEFTA party has
fulfilled all conditions (i.e. EU com-
pliance), while that CEFTA-party will
not have to recognize other AEO
CEFTA Programmes if they do not
meet the requirements. That is why
amendments to the Customs Law
were adopted concerning the provi-
sions regulating this matter, and the
amendment of the by-laws that will
complete the procedure for issuing
the approval, the criteria and the
conditions, the benefits and man-
agement of already issued approvals
is ongoing.
The AEO status is an internation-
ally recognized quality mark, which