1.III.3. Fewer physical and documentary controls
This benefit applies to AEOC and AEOS holders.
Article 38(6) of the UCC and Article 24(1) of the AD UCC provide that AEOs are subject to fewer physical and documentary controls than other economic operators with regard to customs controls and depending on the type of authorisation granted. However, customs authorities may choose to control consignments of an AEO in order to take into account a specific threat, or control obligations provided for in other Union legislation (e.g. e.g., in matters of product safety, etc.).
At the same time, there are also examples where the AEO status is favorably considered even for other controls. (6)
Furthermore, it is important to distinguish between controls related to protection and security and those related to the application of other measures provided for in customs legislation.
This means that only AEOS will be subject to fewer physical and documentary controls related to safety and security, while AEOC will be subject to fewer physical and documentary controls compared to other measures provided for in customs legislation. This includes fewer controls at the point of import or export and the possibility of such regulations also being taken into account in post-customs clearance controls.
To benefit from this advantage, a lower risk rating must be introduced into customs risk management systems. In any case, while this lower risk rating is due to the fact that AEO status is always viewed favorably, the level of reduction may vary depending on the AEO's role and responsibility in the supply chain in question.
It should also be noted that this advantage is related to the overall risk assessment carried out for a particular transaction. In this sense, although AEO status will always be considered in obtaining favorable treatment, other risk indicators, such as country of origin or others, may trigger the need for monitoring.
Taking into account the general principles referred to, several examples of possible situations are offered below:
Entry Summary Declaration (DSE):
In most cases, the requirements and responsibilities associated with filing a DSE fall to the carrier. If this person is the person submitting the DSE and holding an AEOS, they will be directly entitled to receive lower risk ratings once their transport security systems and procedures, business partners, and employees have been reviewed by customs authorities. If, in addition to the carrier, the recipient also holds an AEOS, the level of controls can be further reduced.
Furthermore, if the declared consignor also holds an equivalent AEO certificate issued by a customs authority in a third country and recognised by the EU under a mutual recognition agreement (see Part 1, Section V and Part 6 of these Guidelines), all parties declared in the SED, including those with direct information on the goods concerned, must have their safety and security systems verified by customs authorities, either in the EU or through a comparable process by the customs authorities of the third country concerned. This will contribute to optimizing end-to-end supply chain security and further reducing safety and security controls.
There may also be cases where the data required for DSE is submitted by means of a customs declaration (e.g. e.g., for transit activities). The level of reductions is assessed in the same way, taking into account the roles and responsibilities of the stakeholders. For example, when a freight forwarder holding AEO status is the primary party responsible for a transit customs declaration with the DSE dataset, the type of authorization should be considered first. If the freight forwarder holds an AEOC, the risk ratings related to the customs procedure in question may be reduced accordingly, since in the traditional transit customs declaration, the freight forwarder is the primary party. The carrier assumes responsibility (including financial responsibility) for the goods transported and the accuracy of the information provided, as well as for compliance with transit regulations from the office of departure to the office of destination.
However, for risk rating downgrades related to safety and security controls, the primary obligor must be the AEOS holder.
It should be noted that the new data requirements for DSE and the new archiving provisions will involve various actors in the supply chain whose AEO status will need to be taken into account. However, this new regime will not be implemented until the new ICS 2.0 is operational.
Customs declaration with security and protection data for exit summary declarations (DSS) including:
In most cases, the exporter provides protection and security information through the export customs declaration. Therefore, if the exporter holds an AEOS, they will generally receive a higher level of reductions in terms of security and safety controls.
Customs declarations (security and protection data for DSE/DSS not included):
The holder of an AEOC is a customs broker and the client he represents is not an AEO. The AEO customs agent submits a customs declaration for release into free circulation:
In general, customs authorities should reduce the risk rating according to the degree of involvement of the AEO customs broker in representing their client. This will depend on the type of representation.
The allocation of advantages has to do with the concept of "declarant". It should be noted that, pursuant to Article 5(15) of the UCC, a "declarant" is "the person who lodges a customs declaration, a temporary storage declaration, an entry summary declaration, an exit summary declaration, a re-export declaration or a re-export notification in his own name, or the person on whose behalf such declaration or notification is lodged."
In the case of direct representation, the customs broker is a direct representative of the importer, meaning that the customs broker acts on behalf of the importer. Thus, "the holder of the AEO status" (the customs agent) and "the declarant" (the importer) are not the same person.
Considering that customs authorities review the customs broker's customs formalities and procedures, their AEO status should be viewed positively. However, it should also be noted that, in this case, the person responsible for the accuracy of the information entered in the customs declaration, the authenticity of the documents submitted, and compliance with all obligations relating to the entry of the goods in question under the relevant procedure is the declarant (the non-AEO importer), and not the AEO status holder.
In the case of indirect representation, the customs broker holding the AEO status acts on his own behalf. It is the "declarant", and the customs authorities have verified the procedures it has established to assume the responsibilities set out in Article 5, paragraph 15, of the UCC.
The holder of an AEOC is an importer and works with a customs broker who is not an AEO. The importer submits a customs declaration for release into free circulation:
Risk management should also be addressed in accordance with the degree of involvement of the customs broker in his client's dealings with the customs authorities.
(6) Commission Regulation (EC) No 1276/2008 of 17 December 2008 on physical inspection of agricultural exports of products eligible for a refund or other amounts. (Back)