AEO the ‘thing’ for 2016? KGH touts benefits for overall trade facilitation
AirCargo 240 archive stories
Saturday, 16 January 2016
KGH Border Services, the Swedish-based specialist consultancy on border control and trade facilitation, reckons the Authorized Economic Operator (AEO) is “clearly on the way to take off and become one of the single most important components for trade facilitation” in 2016. As outlined in earlier reports the KGH Group - which also includes KGH Border Services - has been helping Australia with Customs and border protection systems.
President Lars Karlsson says the emerging number of AEO mutual recognition agreements around the world - and the increased quality of these agreements (MRAs) – is creating a whole new platform for Customs co-operation.
“The two very exciting trends in the AEO area that we now see are first that countries are asking for holistic programs again, not only covering security but also compliance, which naturally is the key to trade facilitation and really interesting benefit programs,” said Karlsson.
The second trend is that countries are starting to look at co-ordinated border management (CBM). CBM is, KGH believes, gradually becoming integrated border management through a combination of AEO and single window (SW) solutions. “We estimate the benefits generated from a single government AEO status, for example with agencies like agriculture and food and health, to be considerably better benefit for import and export companies than mutual recognition agreements,” notes a KGH commentary.
“We are talking about streamlined processes generating both predictability and speed way beyond what we have ever seen in the past. This is exciting and it is great to be a part of these developments. We expect to have real measureable results on the ground from these pilot projects during the second half of 2016.”
KGH Border Services has won six major international contracts in the field of AEO and AEO MRA in the past 24 months.
Dubai Customs has started the core implementation project of the first AEO program in the United Arab Emirates. It is a holistic program involving both compliance and security, procedures and stakeholders involved in the global supply chain. The program developed with support from KGH Border Services will be based on experiences from best practices and international standards.
“The Authorized Economic Operator (AEO) will grant us a bundle of benefits, including higher predictability for the global supply chain, which aids in better planning and management of the chain logistics,” said Sultan Ahmed bin Sulayem, chairman of DP World and of Dubai’s Ports, Customs & Free Zone Corporation.
“It will also reduce physical and documentary controls, ultimately leading to the simplification of procedures and smooth trading.”
The project was launched in September and the pilot phase will begin in March 2016. The full launch of Dubai’s AEO program is scheduled for September 2016. The program will also establish MRAs with other AEO programs, expanding the benefits to a global arena.
KGH is also the international consultant working with the Brazilian Federation of Industry and Alliança PROCOMEX supporting the Brazilian Federal Revenue Agency (Receita Federal) in the design, development and implementation of AEO Brazil.
The first phase of the program, AEO Security, was developed and piloted during 2014 and went operational in March 2015. The second phase, AEO Compliance was launched on December 11. Some 20 pilot companies have gone through the validation and received their AEO Compliance certifications.
AEO Compliance will have two tiers and a range of new facilities offered for all stakeholders of the supply chain.
“The AEO Brazil benefit package is one of the best in the world so far,” claimed Karlsson.
“Compared with the present process this will have a huge impact on the import and export for AEO companies and for Brazilian trade. This is a very big positive change for Brazil and is timely, taking into account the challenges for the Brazilian economy right now.”
In 2016 the AEO Brazil project will continue with a third phase, merging with a SW program. There will also be a pilot for a specific AEO SME track to ease the way for more small and medium-sized companies to join the AEO program. A new innovative SME AEO solution is planned to be introduced, making Brazil one of the first countries in the world to do so.
On the web: www.kghborders.com
AEO the ‘thing’ for 2016? KGH touts benefits for overall trade facilitation
AirCargo 240 archive stories
Saturday, 16 January 2016
KGH Border Services, the Swedish-based specialist consultancy on border control and trade facilitation, reckons the Authorized Economic Operator (AEO) is “clearly on the way to take off and become one of the single most important components for trade facilitation” in 2016. As outlined in earlier reports the KGH Group - which also includes KGH Border Services - has been helping Australia with Customs and border protection systems.
President Lars Karlsson says the emerging number of AEO mutual recognition agreements around the world - and the increased quality of these agreements (MRAs) – is creating a whole new platform for Customs co-operation.
“The two very exciting trends in the AEO area that we now see are first that countries are asking for holistic programs again, not only covering security but also compliance, which naturally is the key to trade facilitation and really interesting benefit programs,” said Karlsson.
The second trend is that countries are starting to look at co-ordinated border management (CBM). CBM is, KGH believes, gradually becoming integrated border management through a combination of AEO and single window (SW) solutions. “We estimate the benefits generated from a single government AEO status, for example with agencies like agriculture and food and health, to be considerably better benefit for import and export companies than mutual recognition agreements,” notes a KGH commentary.
“We are talking about streamlined processes generating both predictability and speed way beyond what we have ever seen in the past. This is exciting and it is great to be a part of these developments. We expect to have real measureable results on the ground from these pilot projects during the second half of 2016.”
KGH Border Services has won six major international contracts in the field of AEO and AEO MRA in the past 24 months.
Dubai Customs has started the core implementation project of the first AEO program in the United Arab Emirates. It is a holistic program involving both compliance and security, procedures and stakeholders involved in the global supply chain. The program developed with support from KGH Border Services will be based on experiences from best practices and international standards.
“The Authorized Economic Operator (AEO) will grant us a bundle of benefits, including higher predictability for the global supply chain, which aids in better planning and management of the chain logistics,” said Sultan Ahmed bin Sulayem, chairman of DP World and of Dubai’s Ports, Customs & Free Zone Corporation.
“It will also reduce physical and documentary controls, ultimately leading to the simplification of procedures and smooth trading.”
The project was launched in September and the pilot phase will begin in March 2016. The full launch of Dubai’s AEO program is scheduled for September 2016. The program will also establish MRAs with other AEO programs, expanding the benefits to a global arena.
KGH is also the international consultant working with the Brazilian Federation of Industry and Alliança PROCOMEX supporting the Brazilian Federal Revenue Agency (Receita Federal) in the design, development and implementation of AEO Brazil.
The first phase of the program, AEO Security, was developed and piloted during 2014 and went operational in March 2015. The second phase, AEO Compliance was launched on December 11. Some 20 pilot companies have gone through the validation and received their AEO Compliance certifications.
AEO Compliance will have two tiers and a range of new facilities offered for all stakeholders of the supply chain.
“The AEO Brazil benefit package is one of the best in the world so far,” claimed Karlsson.
“Compared with the present process this will have a huge impact on the import and export for AEO companies and for Brazilian trade. This is a very big positive change for Brazil and is timely, taking into account the challenges for the Brazilian economy right now.”
In 2016 the AEO Brazil project will continue with a third phase, merging with a SW program. There will also be a pilot for a specific AEO SME track to ease the way for more small and medium-sized companies to join the AEO program. A new innovative SME AEO solution is planned to be introduced, making Brazil one of the first countries in the world to do so.
