The concept of AEO in Ukraine is based on the EU legal instruments and the WCO Framework of Standards to Secure and Facilitate Trade. Due to its status, an AEO company enjoys some benefits and has easier access to the customs authorities. In November 2019 the law establishing AEO came into effect. The government believes it will simplify customs formalities for reliable enterprises and help Ukrainian companies in foreign and domestic business competition.
Under this law, any Ukrainian resident company involved in the international supply chain (manufacturer, exporter, importer, customs representative, carrier, holder of an authorisation for customs warehousing) may apply for the status of the authorised economic operator. The status of AEO in Ukraine consists of the following types of authorisations:
- authorised economic operator for “customs simplifications”; or
- authorised economic operator for “security and safety”.
What advantages does an AEO have in Ukraine? An economic operator for customs simplification may be authorised to use a comprehensive guarantee with a reduced amount approved by the customs authority. Before submission of customs declaration, it can independently use seals of a special type, where sealing is required to ensure the identification of the specific goods, means of transport, etc. Apart from that, the AEO may be authorised to use a simplified declaration on a regular basis.
The customs authorities shall grant benefits resulting from the status of authorised economic operator such as priority of customs formalities, reduction of risk level of the economic operator, use of a separate traffic lane on the state border, use of AEO`s national logo, prior notification of inspections (applied to economic operators for security and safety only).
Granting of status. The criteria for the granting of this status are the following:
- legal compliance and absence of any record of criminal offences;
- a proper system of accounting, commercial and transport records;
- financial solvency;
- concerning the authorization for “customs simplifications”, practical standards of competence or professional qualifications of the company`s executive officer (this officer should complete a special course on customs legislation); and
- with regard to the authorization for “security and safety”, appropriate security and safety standards, preventing illegal actions with goods and means of transport under customs control (an economic operator also should hire an employee responsible for communication with customs authorities on security and safety issues). The AEO meets the criteria if it has received an international Security and Safety certificate.
Both types of authorisations may be held at the same time. The application process is free of charge. The customs authorities will monitor the conditions and criteria to be fulfilled by economic operators.
Published: Lexology, 12 February 2020