European AEO: What It Is and How to Apply:
Authorised Economic Operator (AEO) programme
The ais a partnership between customs authorities and economic operators to ensure supply chain security and facilitate legitimate trade.
About the programme
The status of ‘authorised economic operator’ is based on a concept introduced by the World Customs Organization (WCO). In June 2005, the WCO Council adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) that would act as a deterrent to international terrorism, to secure revenue collections and to promote trade facilitation worldwide.
In 2007, the WCO’s flagship Customs-Business partnership programme – the Authorized Economic Operators (AEO) Programme – was introduced, involving a partnership between customs authorities and traders to ensure supply chain security and facilitate legitimate trade.
In the EU, economic operators, who meet a range of criteria can obtain AEO status and in return they are entitled to certain benefits.
3 types of AEO authorisations:
There are 3 types of AEO authorisations, depending on the criteria to be met and benefits granted:
- AEOC for customs simplification
- AEOS for security and safety
- a combination of the two (AEOC/AEOS)
The EU AEO programme is open to all supply chain actors, regardless of their role: importers, exporters, manufacturers, freight forwarders, etc.
Pie chart with percentage of valid AEO authorisations on December 2024.
- AEOC 8868 or 48%
- AEOS 753 or 4%
- AEOF 8816 or 48%
Who can become an AEO?
Any trader:
- established in an EU customs territory
- who holds an EORI number* – *EORI stands for “Economic operators registration and identification”. An EORI number is mandatory for customs clearance in the customs territory of the European Union. That relates to all types of customs operations such as export, import and transit. EORI uniquely identifies economic operators and other persons. At a certain point in time, a person can be assigned only one valid EORI number. Economic operators must communicate this number to the customs authorities of the Member States for customs operations.
- who is part of an international supply chain and is involved in customs-related operations
A trader can hold only 1 AEO status and 1 EORI status in the EU. Once a company is granted AEO status by one EU country, this is recognised by the customs authorities in all other EU countries.
To obtain AEO status, an economic operator must meet the following criteria (see Article 39 of the Union Customs Code
| Conditions and criteria | AEOC | AEOS |
|---|---|---|
| Complies with EU customs legislation and taxation rules and has no criminal offences related to their economic activity | X | X |
| Appropriate record keeping | X | X |
| Financial solvency | X | X |
| Proven practical standards of competence or professional qualifications | X | |
| Applies appropriate security and safety measures | X |
The AEO status granted by one Member State is recognised by the customs authorities in all Member States.
Benefits of AEO status
Economic operators with AEO status enjoy the following benefits:
| Benefit | AEOC | AEOS |
|---|---|---|
| Easier to qualify for simplified customs procedures | X | |
Fewer physical and document-based controls related to:
|
X | X |
| Advance notification if selected for physical control (related to safety and security) | X | |
| Advance notification if selected for customs control (related to EU customs legislation) | X | |
| Priority treatment if selected for control | X | X |
| Possibility to request that the customs controls are carried out in a specific location | X | X |
| Indirect benefits recognition as a secure and safe business partner, improved relations with customs and other government authorities, reduced theft/losses, fewer delayed shipments, improved planning, customer service and customer loyalty, lower inspection costs for suppliers |
X | X |
| Mutual Recognition with third countries | X |
Apply for AEO status
The EU country to which traders must submit their AEO application cannot be chosen by the trader themselves. By default, it is the country where:
- the applicant’s main accounts for customs purposes (the records and documentation enabling the customs authority to take a decision) are held or accessible, and
- at least part of the activities to be covered by the AEO authorisation are carried out.
Whenever it is not possible to clearly determine this country based on these 2 principles, the EU country will be either:
- that of the place where the applicant’s record and documentation enabling the customs authority to take a decision (main accounts for customs purposes) are held or accessible (e.g. the place where their administrative headquarter company is located), or
- that where the applicant has a permanent business establishment and where the information about its general logistical management activities in the EU is kept or is accessible (as indicated in the application).
The customs authority in this EU country is the trader’s competent customs authority.
If you submit your AEO application to the customs authorities in a different country than specified above, it will not be accepted.
AEO Logo
If you have AEO status, you can use the AEO logo. Your competent customs authorities will supply this to you. The logo is copyrighted and the rights belong to the EU. You must stop using it if your AEO status is suspended or revoked. Any abuse will be pursued according to EU law.
References: EU Europa