Authorized Economic Operator (AEO): A New Regime to Improve International Trading

11th Sep, 2001 is an unforgettable day in the aviation history. On this unusual day of 2007, Mr. Pang, Vice President of Supply Chain Security Association (SCSA) with over twenty years field experience, who has witnessed the evolution of Hong Kong’s operation management, wants to remind people to pay special attention to the security control.

 

The negligence of security control in the aviation system has been noticed and all the regulations has been re-evaluated and reinforced against any possibility of terrorism. Besides the personal safety, the cargo safety is also of great importance because people have realized the significance of the global supply chain security. A small mistake can result in tremendous damage and losses so some examinations can be done in advance to minimize the potential damage.

 

According to World Customs Organization (WCO), some new procedures have been introduced in the Framework of Standards to Secure and Facilitate Global Trade to enhance the supply chain security, as the newly launched Authorized Economic Operator (AEO) regime is aimed at Customs Simplification / Security & Safety Control. It can encourage all the parties in the supply chain industry to increase security in exchange for incentives that will improve the efficiency as well as a higher level of security control. Fewer physical border controls, less paper reports, reduced risks and priority treatment for goods examinations are some of the benefits of the AEO certification.

 

The AEO regime is supposed to be applied worldwide. Applications period has already started in some EU countries such as the United Kingdom and Italy, etc. It will become a trend that international mutual recognition of the certificates will be based on a shared database so that a more efficient and secure outcome can be reached.

 

The security control is not only focused on personal safety but also it is the main issue in the supply chain industry that people have to be cautious about. With every single effort made by the customs, the security and safety control level is expected to enter a new era.

 

More information is coming soon. If you are interested in the AEO regime, please contact us for the details.

 

About Supply Chain Security Association (SCSA)

SCSA was found by a group of professionals from supply chain management, security management and information technology management in April 2002, with the aim to address the awareness towards emerging security threats on the supply chain industry. For more information, please visit us at www.scsasecurity.org

Contacts for further information

Mr. Cheng                                                                                                                                            Phone: (852) 2331 8775    Fax: (852) 2331 8069