Published on: 23/07/2010 10:07:00

1. Background

Authorised Economic Operator (AEO) status within the EU was introduced by Council Regulation 648/2005 and implemented by Commission Regulation 1875/2006 which took legal effect on 1 January 2008.

Previous papers issued on this subject are JCCC Papers (07)25, (07)46 and Customs Information Papers (08)21, (08)29, (08)80 (09)53, (09)83, and (10)43.

2. The addition of a new AEO criterion when the Modernised Customs Code (MCC) is implemented in 2013

Under current EU legislation a business wanting to obtain a customs simplifications AEO certificate (AEOC) must meet the three criteria of customs compliance, satisfactory records and proven solvency. For a business wanting to obtain a combined customs simplifications and security and safety AEO certificate (AEOF) they additionally need to meet the safety and security criterion.

Under changes introduced within the MCC, businesses that hold or want to obtain an AEOC or AEOF certificate will additionally have to meet a new criterion covering practical standards of competence or professional qualifications. The latest draft of the Article containing this criterion, within the draft Implementing Provisions to the MCC, is enclosed at Annex A to this Paper. Although some of the detail of this Article may still be subject to change within the Customs Code Committee, HMRC consider the substance of the Article has now been established and agreed.

Businesses that hold or want to obtain a safety and security AEO certificate (AEOS) are not affected by this change.

It is also important to note the new criterion can be met by fulfilling either one of the conditions for professional qualifications contained in paragraph (a) or the practical standards of competence described in paragraph (b).

Businesses that apply for an AEOC or AEOF certificate after the MCC is implemented in June 2013 will need to meet the new criterion. Businesses that currently hold an AEOC or AEOF certificate under the existing legislation will need to show, within a transitional period of 24 months, they meet the new criterion.

3. Consultation with trade

To prepare for this change and help develop UK and EU guidelines for this new criterion, HMRC would welcome feedback from AEOs or businesses intending to apply for AEO status, as well as trade associations and training providers, on its practical impact. In particular we would be interested to hear about:

a. Any professional qualifications, training and examinations that you currently hold or provide and consider could qualify under paragraph (a) i of the Article
b. Any European quality standards certified and endorsed by a European trade association that you currently hold or provide and consider could qualify under paragraph (a) ii.
c. Any qualifications or standards that are in the process of being developed and could be in place by 2013 to qualify under paragraph (a) i or ii.
d. Any other evidence you may have that you consider would show the criterion is met.

4. Contacts
Trade feedback should be sent to the AEO team as below:
AEO Team, 10th Flr West, Alexander House,
21 Victoria Avenue,
Southend-on-Sea, Essex SS99 1AA
Email: aeoteam@hmrc.gsi.gov.uk
AEO Web page:
Link to AEO web page
Issued on the 19 July 2010 by the JCCC Secretary HMRC, Excise, Customs Stamps & Money Directorate.

If you have a question about the content of this paper please use the details provided in the Contacts section. For general HMRC queries speak to the VAT, Excise & Customs Helpline on Tel 0845 010 9000 begin_of_the_skype_highlighting              0845 010 9000      end_of_the_skype_highlighting.

For comprehensive guidance on international trade regulation, as well as advice on market information and business growth visit the Business Link website.






Annex to CIP (10) 51

Annex A Draft Article 123.09
AEO criterion on practical standards of competence or professional qualifications
MCC implemented provision:
Article 14 MCC empowering provision:
Article 15 Current IP provision:
none
The criterion relating to the practical standards of competence or professional qualifications directly related to the activity carried out, as referred to in Article 14(d) of the Code, shall be deemed to be met by the applicant or his employee(s) responsible for customs matters or the contracted person(s) or its (their) employee(s) responsible for customs matters, if any of the following conditions is met:
a) for professional qualifications:
i. he has undertaken training and passed an examination, consistent with the extent of his involvement in customs activities, covering Community customs legislation, held by any of the following:
- a customs authority of a Member State;
- an educational establishment recognized, for the purposes of such qualification, by the customs authorities of a Member State;
- a professional or trade association recognized by the customs authorities of a Member State or accredited in the Community in accordance with Community provisions in force; or
ii. as member of a trade association or professional body proves to apply its own quality standards at European level adopted by a European Standardization Body and thus his quality of service is certified by this body and endorsed by the trade association at European level; or
b) for the practical standards of competence:
i. has a minimum of 3 years practical experience on customs matters; if the applicant has been established for less than three years, practical experience on customs matters shall be judged on the basis of records and information that are available.

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