AmCham Macedonia Fall 2018 (Issue 59) | Page 20

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. 20 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