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EAC AEO Program Overview & Benefits

The document discusses Tanzania's Authorized Economic Operator (AEO) program, which aims to enhance customs efficiency and facilitate trade for compliant traders. Under the program, traders who meet certain criteria related to compliance, security, and record keeping can receive AEO status. This low-risk designation qualifies them for simplified customs procedures and other benefits. The East African Community has implemented a regional AEO program to further streamline trade across the region.

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Master Kihimbwa
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100% found this document useful (1 vote)
336 views2 pages

EAC AEO Program Overview & Benefits

The document discusses Tanzania's Authorized Economic Operator (AEO) program, which aims to enhance customs efficiency and facilitate trade for compliant traders. Under the program, traders who meet certain criteria related to compliance, security, and record keeping can receive AEO status. This low-risk designation qualifies them for simplified customs procedures and other benefits. The East African Community has implemented a regional AEO program to further streamline trade across the region.

Uploaded by

Master Kihimbwa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

of Understanding (MoU) which is done by trading environment.

the Customs Administration on behalf of Kenneth Bagamuhunda, the Director General of


EAC. Customs and Trade at the EAC Secretariat, once
4. EAC Secretariat issues a certificate to the expressed his optimism towards the scheme:
applicant. “The roll-out of the Regional AEO programme
is one of the region’s priority Customs
Benefits of being AEO modernization initiatives, and has been fully
All AEO enjoy recognition as low risk mainstreamed into the EAC Strategic Plan.
company 
and expedited Clearance procedures Based on the results obtained so far, the
with 
Customs 
 programme will be meaningful, and provide
real improvements and facilitation gains to TANZANIA REVENUE AUTHORITY
In addition, various benefits accrue for each companies across the region.”
category of AEO. The benefits offered by
Customs to AEOs include:

1) Automatic passing of declaration 



2) No physical examination of goods,
except 
for random or risk based
interventions. 
 For more information on the program please
3) ECTS requirement waiver contact:
where 
applicable
4) Expedited payment of refund claim 
 AEO Project Manager
5) Reduced Customs control Tanzania Revenue Authority AUTHORIZED ECONOMIC
where 
applicable 

6) Priority to participate in Customs 
initiatives 

DAR ES SALAAM
Telephone:+255 - 22-2863446 OPERATORS (AEO)
7) Guaranteed renewal of Customs license 
 PROGRAM IN TANZANIA
8) Priority treatment in cargo clearance 
chain 
 or
9) Waiver of movement bond Contact your nearest TRA Office
requirements 
for AEO 
 or
10) Self-management of bonded warehouse Call Center
Toll free:
Conclusion: 0800 780078
Schemes like AEO, which provide Customs 0800 750075
administrations with some degree of certainty Email: [email protected]
on actors in the supply chain, are seen as [email protected]
being part of the solution that enables Customs
to offer trade facilitation benefits to reliable
and compliant traders. By implementing a
regional AEO programme that is supported by
sound data management, EAC Partner States’
Customs services will be able to provide what February 2019
businesses operating in their respective States
are looking for: a transparent and predictable
Background The simplified procedures for AEOs have had that the trader has qualified for. The AEO
The East African Community (EAC) regional tremendous effect with regard to reducing the categories are:
Authorized Economic Operator (AEO) program cost associated with movement and clearance 1) Importers
was conceived by the Commissioners of of goods. The EAC is currently pursuing mutual 2) Exporters
Customs of the East African (EAC) countries recognition with other trading blocs, a move 3) Clearing and Forwarding Agents
of Burundi, Kenya, Rwanda, Tanzania and which will lead to EAC AEOs enjoying more 4) Transporters
Uganda in 2008 after the adoption of the World benefits when trading outside EAC region. 5) Manufacturers (engaged in import and
Customs Organization (WCO) SAFE Framework export), and
of Standards by the WCO Council in 2005. The Joining the Regional AEO program therefore 6) Bonded Warehouse Operators
Commissioners’ decision was in line with the opens the doors for unlimited opportunities and
EAC Protocol that requires the EAC region to the key to unlock the potential of your business. Criteria to become an AEO
set up a Customs Union as one of the building It is the Customs way of supporting business 1) Company details must be availed to
blocks for regional integration. The decision was and for business to support development in the customs.
also prompted by the consideration that since EAC region 2) Record of compliance without repeated
the AEO program is about trade facilitation and mistakes
the security of the supply chain, traders and Who is an AEO? 3) Maintenance of records as required by
laws.
Customs stood to gain more if the whole supply AEO is defined as an individual, a business entity
4) Financial solvency which guarantee
chain within the region is covered under one or a company that is involved in international
fiscal debts recovery.
program. trade and is duly authorized by the Commissioner 5) Security and safe standards including
for Customs to transact business with Customs trade Partners
The AEO program is a WCO program that under special arrangements. 6) Volumes of business substantial for
is being implemented worldwide. It aims to AEO consideration.
enhance Customs efficiency in the face of Types of AEO in Tanzania: 7) Nature of goods trades.
increasing volumes of trade and the increasing 1) National AEO: those business entities 8) AEO employees must have
vulnerability of the international trade supply whose business operations do not go required academic and professional
chain to security threats as well as the use beyond the national borders. qualifications.
of the international trade supply chain as a 2) Regional AEO: These are business entities 9) Must guarantee cooperation with
conduit for high security risk materials. AEO customs Authority whenever required
in Tanzania whose business operations
program tackles these challenges by shifting cross borders of the EAC Partner States
the perspective, so that instead of focusing on Authorization Process
and are recognized as AEO in all of the EAC The authorization process is summarized into
the goods themselves, Customs focus on the
Partner states four stages as below;
traders. The compliant traders are therefore
1. The applicants lodge application with the
given AEO status which means they are low
risk companies and can therefore be trusted
Who can apply for AEO Status? national Customs administration.
Any trader involved in the international supply 2. Once satisfied that the applicant meets
by Customs. This implies that Customs can the required criteria, the national Customs
chain and carryout Customs related activity
handle the consignments of such companies administration checks compliance records of
in the EAC can apply for the AEO status. An
with less control compared to others. That way the applicant with Customs administrations
applicant will be assessed in line with the
the AEO program is an instrument for growing in other Partner Sates and approves the
compliance. respective nature of business, and AEO status application.
will be related to the specific trader’s categories 3. The applicant is invited to sign a Memorandum

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