The European Union and the United States has formally agreed to recognise each other’s safe traders. Under this agreement the EU and the US will recognise each other’s security certified operators. Authorised economic operators in the EU will receive benefits when exporting to the US market, and the EU will reciprocate for certified members of the US Customs-Trade Partnership against terrorism (C-TPAT). Briefly put, EU and US certified trusted traders by signing up to security standards can clear customs with reduced administration. Customs authorities then focus their attention on what imports and exports they see as riskier.
Some 5000 companies are approved as Authorised Economic Operators (AEOs) in the EU. The EU and USA’s imports and exports accounting for almost €500 billion in 2011. The Eu and US authorities said that mutual recognition would boost trade opportunities and contribute to the smooth flow of goods between both sides, without compromising security standards on either side of the Atlantic. The joint decision will start to work from July 1.
Algirdas Šemeta, EU Commissioner for Taxation and Customs Union, Audit and Anti-Fraud said on May 4: “Today an important step forward has been taken in EU-US trade relations– and in securing the global supply chain. After several years of negotiations, the EU and USA have agreed to mutually recognise each other’s “trusted traders”. In other words, reliable companies that are security certified under the EU AEO system, and the US C-TPAT system, will enjoy easier, cheaper and more predictable procedures at customs.
“This has been much anticipated by the thousands of European AEO certified companies, and will open up new trade opportunities on both sides of the Atlantic. In short, mutual recognition will facilitate business and promote trade at a time when such measures are much needed for economic growth. Moreover, today’s accord offers benefits to each and every citizen, through greater supply chain security. By mutually recognising each other’s reliable companies, the EU and USA will be able to re-focus resources on where security risks really lie.
Customs will become even more effective in the protection it provides for us all on a daily basis.”
He added: “Transatlantic co-operation on supply chain security improves the business environment, accelerates trade and contributes to the safety of our citizens.”
Since 2008 European companies can apply for an AEO status to have easier access to customs simplifications and to be in a more favourable position to comply with EU security requirements. The AEO status at EU level identifies safe and reliable businesses that do international trade. This means they deliver standards of security and compliance, thus making these companies highly trusted trade partners at customs checks. Fewer inspections on goods are necessary and formal customs procedures are quicker to fill in. Goods can move faster from one destination to another and it lowers transport costs. It also benefits EU customs administrations who can concentrate on checking high risk transactions.
