Global customs accreditation scheme gains ground

Gordhan sets two-year deadline for local implementation RAY SMUTS, JOY ORLEK SA REVENUE Service has set a two year deadline for the implementation in South Africa of the Authorised Economic Operator (AEO) concept devised by the World Customs Organisation (WCO). In essence it is designed to afford accredited operators the benefits of fewer customs stops based on a set of internationally-recognised compliance criteria. Sars commissioner Pravin Gordhan told guests at a Safmarine/Cape Times business breakfast last week that his administration was committed to the introduction of the concept as part of its trade facilitation objectives. “What it boils down to is that no customs documentation need be submitted, save the manifest, as there has been clearance on both sides of the authorised economic operator. “This amounts to an immense facilitation of trade which will allow the supply chain to work a lot more effectively and give real meaning to just-in-time delivery,” Gordhan said. Earlier this year he revealed that a framework of standards that would apply to customs administrations worldwide was under discussion by the WCO. In practical terms it means that if South Africa has a bilateral agreement with the UK, for example, any agency recognised in SA as an AEO will also be recognised by the UK, and an AEO from South Africa whose goods are destined for the UK will be afforded green lane facilities. The concept is gaining ground worldwide where similar concepts have been in place for some time. A paper released in the EU outlining the background to the development points out that it has had a long tradition of reliable economic operators being granted authorisations on a case by case basis for simplified customs procedures. Following the increased need for safety and security, particularly in international supply chains, the EU saw a need to generalise the system at EU level and extend the concept to allow benefits for operators that comply with security and safety requirements. The idea is to grant AEO status to reliable operators including those that are also compliant in terms of security and safety standards and can therefore be considered secure traders. They will be given a specific status as secure members of the supply chain and that would identify them as most reliable trading partners. The principle is not dissimilar to the Sars accreditation system introduced some years ago which accorded certain customers ‘green lane’ status for the clearance of their goods based on a set of compliance criteria.