What is Authorised Economic Operator (AEO) status?

Published: Wednesday, 18 October 2023

Authorised Economic Operator status

When it comes to freight forwarding and the safe movement of cargo, it’s important to look for a time-critical logistics specialist with AEO status. This illustrates a globally recognised standard of professionalism and will give you peace of mind. Let’s delve into what an Authorised Economic Operator is and why it’s beneficial:

What is an AEO?

The term Authorised Economic Operator (AEO) is an internationally recognised quality standard. It demonstrates that a company’s role in the supply chain is secure and reliable, and that any customs controls and procedures are efficient and compliant.

What are the types of AEO Standards?

There are two types of AEO standards: AEOC (Customs Simplification) and AEOS (Safety and Security). An organisation that holds both is referred to as AEOF. To be awarded AEOC status, you must show that you’re operating at a quality level. You need to have:

• Good tax and customs compliance history
• Good commercial and transport record-keeping standards
• Financial solvency
• Professional qualifications or demonstrate practical standards of competence

AEOS is issued to companies that can demonstrate appropriate security and safety standards to protect the international supply chain. These standards include:

• Physical integrity and access controls
• Logistical processes and, if applicable, the handling of certain kinds of goods
• Personnel and identification of business partners

Is AEO status good for business?

AEO status can be great for business and draw in new clients. This is mostly because it’s not mandatory. So those with AEO status have taken the time to apply in a bid to prove that they take their freight forwarding services seriously.

What are the benefits of AEO status?

Companies who opt for logistics providers with AEO status also enjoy many business benefits. These include smoother, faster forwarding of cargo and faster clearance operations. Often logistics specialists with AEO status face fewer physical and documentation checks by border force. The completion of any necessary paperwork is much easier to navigate too, thanks to reduced requirements on some customs declarations.

How do you get AEO status?

Any business in the UK with an Economic Operator Registration and Identification (EORI) can apply for AEO status, so long as they’re involved in the international supply chain and carry out customs related activities. Operators in the UK must meet several requirements before applying, such as being a legal entity established in the UK. They must then pass a series of checks in order to be approved. The most reputable freight forwarders hold AEO status, so always look for a company with these credentials for the best logistics service.

Contact Priority Freight today for a wide range of quality freight forwarding services including air charter services and road freight options. Find out more about global freight solutions and pick the right option for your requirements.