AEO Certification: The Key to Simplifying Customs Procedures

One of the certifications we hold at HOPI Logistics is the AEO certification. This is especially important in the field of international logistics, where it can significantly simplify and streamline processes – benefiting not only us, but most importantly, you, our customers! Let’s take a closer look at what the AEO certification is all about, what it involves, and how it can be obtained.

What is AEO Certification

AEO is one of the many certifications we at Hopi Logistics are proud of. It is a certificate that not only confirms the quality of our services and our commitment to customer satisfaction, but also facilitates some key processes in international logistics, which ultimately benefits our clients.

Definition and Purpose of AEO

AEO (Authorised Economic Operator) is an internationally recognized standard granted to companies by customs authorities. It can be obtained by companies involved in global supply chains that meet strict criteria regarding reliability, safety, compliance with customs regulations, and financial stability.

If a company holds AEO status, it means it is a trusted business partner – in the eyes of both customers and customs offices. This results in various advantages, such as simplified customs procedures, faster cross-border goods movement, and more efficient communication with customs authorities — all of which ultimately benefit the customer.

Types of AEO Authorization

AEO certification is divided into several types, each focusing on different aspects of business operations and addressing different company needs. Each type offers specific benefits.

AEOC (Customs Simplifications)

Companies primarily interested in simplifying customs procedures benefit most from the AEOC certification type. It brings advantages such as easier and faster processing of customs documents, fewer physical checks, and reduced administrative burden. They can also request priority clearance and similar process adaptations.

AEOS (Security and Safety)

If a company focuses primarily on protecting goods, personnel, and data, it can obtain AEOS certification (Security and Safety). Customers then have the assurance that the company is low-risk, which may reduce the number of customs inspections. Additionally, shipments typically receive priority handling during customs controls, and this certification comes with reduced requirements for entry and exit summary declarations.

AEOF (Full)

AEOF combines the benefits of both AEOC and AEOS types. This certification is held mainly by major players in international logistics, who are regarded as truly reliable partners by customs authorities thanks to their many years of experience.

Benefits of AEO Certification

Holders of AEO certification and their customers can enjoy a wide range of benefits associated with this status.

Simplified Customs Procedures

One of the most significant benefits of AEO certification and a main reason companies pursue it is simplified customs procedures. Customs authorities consider certified companies as more trustworthy partners, minimizing bureaucracy and processing shipments more quickly and efficiently.

Reduced Physical and Document Checks

Shipments from AEO-certified companies are typically subject to fewer physical inspections and document checks. This is a great advantage especially for express deliveries that need to be delivered as quickly as possible.

Priority Customs Clearance

A major benefit is that AEO-certified companies can enjoy priority customs clearance. This further accelerates shipment movement, which is crucial for express deliveries or goods prone to rapid spoilage.

Option to Request Inspections at Specific Locations

Certified companies can request that customs inspections take place at a location of their choice – for example, in their own storage facilities. This helps minimize delays and the need to rehandle goods, speeding up the entire process and reducing costs.

Requirements for Obtaining AEO Certification

Obtaining AEO certification is not easy. However, this is exactly what gives the status real value, and you as a customer can be sure that its holders are truly reliable partners for your logistics needs.

Compliance with Customs and Tax Regulations

The basic requirement is that the company must demonstrate long-term compliance with current customs and tax regulations. During the application process, past documentation from recent years is reviewed to ensure there were no serious or repeated violations of regulations.

Reliable System for Managing Trade and Transport Records

Another key requirement is the existence of a reliable system for recording business and logistics data. This must be a transparent system that can be easily accessed during audits and should demonstrate that the company has:

  • a well-maintained logistics system with a complete audit trail
  • methods to access its customs records
  • a logical administrative system
  • documented procedures for managing goods flow
  • internal controls to detect illegal or incorrect transactions
  • procedures for handling licenses and permits
  • established archiving and retrieval procedures
  • trained personnel who inform regulatory authorities about any system errors
  • procedures for reviewing customs declarations submitted by third parties on behalf of the company
  • implemented IT security measures

Financial Solvency

Another requirement is the company’s ability to meet its financial obligations. Financial statements, net assets, and other supporting documents must be submitted to prove financial stability.

Practical Competence or Professional Qualifications

Applicants must demonstrate practical customs expertise over recent years. This includes experience in the field, knowledge of relevant legal regulations, and the ability to effectively implement measures.

Adequate Safety and Security Standards

A fundamental requirement is also the implementation of security measures in the supply chain. These include not only physical security but also digital security, ensuring reliable protection of data from unauthorized access.

Process of Obtaining AEO Certification

Unlike meeting all the requirements, the process of obtaining AEO certification itself is not particularly complicated. In recent years, it has also moved to a completely online system, making it even more accessible.

Electronic Application via Trader Portal eAEO

Since October 2019, the only way to initiate the AEO certification process is to submit an electronic application via the Trader Portal eAEO. This platform was created to make application and evaluation more efficient, allowing applicants to submit all required documents at once.

Completing the Self-Assessment Questionnaire

The core of the electronic application is a self-assessment questionnaire. Applicants answer questions related to customs and tax compliance, security measures, and other relevant aspects, as mentioned earlier.

Application Review by Customs Authorities

The submitted application is thoroughly reviewed by customs authorities, who then decide whether the applicant qualifies as a trusted business partner. This review includes document analysis and often an on-site audit.

Processing Time and Issuance of Certification

The processing time depends on several factors, including the complexity of the application, the quality of the submitted materials, and the current workload of customs authorities. Generally, it can take several months. If the applicant meets all requirements and is deemed trustworthy by the authorities, the certificate is issued and remains valid as long as compliance is maintained.

Impact of AEO Certification on Business

AEO certification is far from just a piece of paper. Receiving it immediately enhances the company’s credibility in the eyes of customers and customs authorities, which brings multiple business benefits.

Increased Trust Among Business Partners

Companies holding AEO certification are automatically seen as more trustworthy by existing and potential business partners. The certificate proves that the company meets strict requirements for security, compliance, and financial stability — all crucial for strong business relationships.

Improved Relations with Customs Authorities

AEO-certified companies often have better and more efficient relationships with customs authorities. They benefit from faster communication and smoother resolution of any issues, which is also a major advantage for their customers and shipments.

Competitive Advantages on International Markets

In the fast-paced world of international trade, the universally recognized AEO certification offers a significant competitive edge. Certified companies are perceived as more reliable and lower-risk by potential partners, which significantly boosts their business opportunities.

Frequently Asked Questions about AEO Certification

Didn’t find an answer to your question about AEO certification in the text? You might find it among the most frequently asked questions.

Is AEO Certification Mandatory for All Companies?

AEO certification is not mandatory. However, for companies involved in international trade, it is highly recommended. It brings advantages that simplify the entire logistics process and enhance competitiveness.

How Long Is the AEO Certification Valid?

AEO certification remains valid as long as the company continues to meet all requirements. Customs authorities perform regular inspections to ensure ongoing compliance with the strict criteria.

What Are the Costs Associated with Obtaining AEO?

Typically, there are no high costs associated with obtaining AEO certification. Costs may include the preparation of required documentation, potential adjustments to existing procedures, and other expenses that vary depending on the size and nature of the company.