   
  
INF/MSME/W/47/Rev.1  
 
9 February 2024 
(24-1177) Page: 1/46 
  Original: English  
 
INFORMAL WORKING GROUP ON MSMES  
A COMPENDIUM OF SPECIAL PROVISIONS FOR MSMES IN  
AUTHORIZED ECONOMIC OPERATOR (AEO) PROGRAMS  
Revision  
The following updated compilation  of Authorized Economic Operator (AEO) programs that include a 
MSME  dimension , dated 9 February 2024 , has been prepared by the WTO Secretariat at the request 
of the Informal Working Group on MSMEs to promote experience sharing.  It was presented at the 
29th WCO SAFE Working Group Meeting in November 2023 and incorporates fe edback received from 
the WCO members.  It does not represent the official position of the WTO, nor of the WTO Secretariat. 
The document is being circulated at the request of the Coordinator of the Informal Working Group 
on MSMEs, Ambassador  Matthew  Wilson ( Barbados).  
 
_______________  
 
 
  INF/MSME/W/47/Rev.1  
 
- 2 - 
 
  Contents  
1   INTRODUCTION  ................................ ................................ ................................ ...... 3 
1.1   What are Authorized Economic Operator (AEO) programs ? ................................ .............. 3 
1.2   Why does AEO status matter for MSMEs ?................................ ................................ ......3 
2   OVERVIEW  ................................ ................................ ................................ ..............  4 
3   COMPILATION OF INITIATIVES  ................................ ................................ ...............  5 
3.1   WCO SAFE Framework  ................................ ................................ .............................. 5 
3.1.1   AEOs in the context of the WCO SAFE Framework  ................................ ....................... 6 
3.2   National Initiatives  ................................ ................................ ................................ ....6 
3.2.1   Argentina  ................................ ................................ ................................ ............. 6 
3.2.2   Australia  ................................ ................................ ................................ .............. 7 
3.2.3   Brazil  ................................ ................................ ................................ ................... 8 
3.2.4   Canada  ................................ ................................ ................................ ..............  10 
3.2.5   China  ................................ ................................ ................................ .................  12 
3.2.6   Dominican Republic  ................................ ................................ ..............................  14 
3.2.7   European Union  ................................ ................................ ................................ ... 15 
3.2.8   Fiji ................................ ................................ ................................ ....................  17 
3.2.9   France  ................................ ................................ ................................ ...............  18 
3.2.10    Hong Kong, China  ................................ ................................ ..............................  18 
3.2.11    India ................................ ................................ ................................ ................  20 
3.2.12    Indonesia  ................................ ................................ ................................ .........  22 
3.2.13    Jamaica  ................................ ................................ ................................ ............  24 
3.2.14    Japan  ................................ ................................ ................................ ...............  26 
3.2.15    Jordan ................................ ................................ ................................ ..............  27 
3.2.16    Korea, Republic of  ................................ ................................ ..............................  28 
3.2.17    New Zealand  ................................ ................................ ................................ ..... 30 
3.2.18    Philippines  ................................ ................................ ................................ ........  32 
3.2.19    Switzerland  ................................ ................................ ................................ ....... 34 
3.2.20    Thailand  ................................ ................................ ................................ ...........  34 
3.2.21    Türkiye ................................ ................................ ................................ .............  36 
3.2.22    Uganda  ................................ ................................ ................................ ............  37 
3.2.23    Ukraine  ................................ ................................ ................................ ............  38 
3.2.24    United Kingdom  ................................ ................................ ................................ . 39 
3.2.25    United States of America  ................................ ................................ .....................  40 
3.2.26    Uruguay  ................................ ................................ ................................ ...........  41 
3.2.27    Zambia  ................................ ................................ ................................ ............  42 
3.3   Key Lessons Learned  ................................ ................................ ...............................  44 
4   INITIATIVES BY REGIONAL ORGANIZATIONS  ................................ ........................  44 
4.1   Asia-Pacific Econ omic Cooperation (APEC)  ................................ ................................ .. 44 
5   OTHER INITIATIVES  ................................ ................................ ..............................  45 
5.1   Global Alliance for Trade Facilitation  ................................ ................................ ..........  45 INF/MSME/W/47/Rev.1  
 
- 3 - 
 
  1  INTRODUCTION  
1.1  What are Authorized Economic Operator (AEO) programs ? 
1.1.  As part of the 2005 SAFE Framework, the W orld Customs Organization (WCO)  established the 
Authorized Economic Operator  (AEO) programme1 that allows certain economic operators to benefit 
from preferential measures, such as fewer physical inspections at Customs, more rapid release times 
and reduced documentation and data require ments, provided that these operators comply with 
specific requirements, such as a demonstrated compliance record, a satisfactory system for the 
management of commercial records, financial viability, and security concerning cargo, transport 
conveyances, pre mises, personnel and trade partners .2 AEOs are businesses with a proven track 
record of compliance with Customs rules which are perceived to present a lower risk of future 
violations. AEO programs are designed to facilitate smoother trade by reducing the bureaucratic 
hurdles and costs associated with cross -border trade, making it easier for businesses to operate 
internationally.  
1.2.  Building on this international practice, the WTO Trade Facilitation Agreement (TFA) includes a 
specific provision on  'Authorized  Operators '. Under Article 7.7 of the TFA, Members shall "provide 
additional trade facilitation measures related to import, export, or transit formalities and procedures 
[…] to operators who meet specified criteria" which may include appropriate record of compliance 
with Customs and other related regulations, a system of managing records for necessary internal 
controls, financial solvency and supply chain security. These criteria are not mandatory, and an 
Authorized Operator scheme may include any combinati on of the specified criteria.  
1.3.  The eligibility criteria for the AEO status are defined in the Customs regulations of a n economy . 
According to the WCO, the benefits provided under AEO programs must be "meaningful, measurable, 
and reportable." This ensures th at AEOs enjoy genuine benefits compared to non -authorized traders. 
AEO programs are open to any member of the trade community, including importers, exporters, 
manufacturers, Customs agents, freight forwarders, and carriers.  
1.4.  Governments are encouraged to d esign their authorized economic operator programs based 
on relevant international standards. There is an emphasis on mutual recognition, such that a 
business that obtains authorized operator status in one economy could potentially receive the same 
benefits  in another if both economi es recognize each other's authorized operator statuses.  
1.2  Why does AEO status matter for MSMEs ? 
1.5.  One of the main benefits of participation in an AEO program for a  micro, small or medium -
sized enterprise  (MSME ) is the status of being  an AEO itself. The status comes with a reputation 
effect that changes the perception of potential customers about the AEO holder.  
 
1 The WCO defines an authorized economic operator (AEO) as "a party involved in the international 
movement of goods in whatever function that has been approved by , or on behalf of , a national customs 
administration as complying with WCO or equivalent supply chain security standards ". 
2 World Customs Organization Authorized Operators Scheme, Article 7.7 of the WTO Agreement on 
Trade Facilitation. authorised -operator -scheme -flyer.pdf (wcoomd.org) . INF/MSME/W/47/Rev.1  
 
- 4 - 
 
  1.6.  Compared to larger firms, some of the benefits that seem to be more concrete for MSME  traders 
with AEO status are as follows3,4:  
• Reduced Compliance Burden: MSMEs often face challenges in navigating complex 
Customs procedures due to limited resources. The AEO status will alleviate some of 
these challenges by offering streamline d processes.  
• Competitive Advantage: Effici ent and expedited Customs clearance gives MSMEs a 
distinct competitive edge. This is particularly beneficial in sectors where prompt delivery 
is important.  
• Increased Security and Trust: Earning recognition as an authorized operator boosts a 
MSME's credibil ity. This status signals to international partners and customers that the 
enterprise is reliable and adheres to Customs regulations, thereby fostering trust.  
• Potential for International Expansion: The simplification of Customs procedures through 
AEO status  paves the way for MSMEs to broaden their horizons internationally. This 
facilitates access to new markets and a wider customer base.  Further, AEO Mutual 
Recognition Arrangements (MRAs) demonstrate how international cooperation can 
support MSMEs. They enab le MSMEs to benefit from closer cooperation between 
Customs administration and encourage collaboration between economies to share best 
practices.  
• Enhanced Oversight: MSMEs with AEO status benefit from a more transparent and 
controlled transportation proces s, ensuring goods are moved efficiently and securely.  
• Clarity in Organizational Roles: AEO status helps reduce ambiguity in organizational 
roles and responsibilities, ensuring that every team member understands their specific 
duties.  
• Improved Human Resourc es Practices: With AEO, MSMEs can adopt better practices in 
human resources, including more strategic hiring and structured layoff procedures.  
• Robust Security Measures: AEO -certified MSMEs have superior intra -firm security 
practices, ensuring the safety of  assets and sensitive information.  
• Enhanced Accuracy: With AEO status, MSMEs exhibit improved accuracy in 
transportation information management and accounting practices, leading to better 
decision -making and financial reporting.  
2  OVERVIEW  
2.1.  This compendium co mpiles the AEO programs of 2 7 WTO Members which have MSME -specific 
measures . These Members include Argentina; Australia; Brazil; Canada; China; Dominican Republic; 
European  Union; Fiji; France; Hong  Kong, China; India; Indonesia; Jamaica; Japan; Jordan; 
Korea, Republic of; New Zealand; Philippines; Switzerland; Thailand; Türkiye ; Uganda; Ukraine;  
United Kingdom; United States of America; Uruguay  and Zambia . 
2.2.  This compendium compiles the AEO programs of WTO Members which enable the participation 
of MSMEs , as defined by the various economies presented in this document . The focus is on ensuring 
that businesses, especially MSMEs, can benefit from the AEO programs.  
 
3 Sources:  "Integrating SMEs in Authorized Economic  Operator Certification: Improving SME  
Participation in APEC Secure Trade " (2021) , https://www.apec.org/doc s/default -
source/publications/2021/2/integrating -smes-in-authorized -economic -operator -
certification/221_sccp_integrating -smes-in-authorized -economic -operator -certification -
2.pdf?sfvrsn=8c0ca64c_1 ; "The Authorized Economi c Operator and the Small  and Medium Enterprise " (2010), 
https://www.wcoomd.org/en/topics/facilitation/instrument -and-
tools/ tools/~/media/93162547322F462A97F8767D0987A901.ashx ; "Who benefits most from AEO certification?  
An Austrian  perspective ", World Customs Journal, 
https://worldcustomsjournal.org/Archives/Volume%209%2C%20Number%201%20(Mar -
Apr%202015)/WCJ_V9N1%20Schramm.pdf . 
4 Authorized Economic Operator Programs in Islamic Countrie s, COMCEC (2018), https://sbb.gov.tr/wp -
content/uploads/2019/06/Improving -Authorized -Economic -Operators -Programs -in-the-OIC-Member -
States.pdf . INF/MSME/W/47/Rev.1  
 
- 5 - 
 
  2.3.  Main Features/Commonalities:  
• Flexibility: Many economies offer tailored criteria for MSMEs, recognizing their unique 
challenges.  
• Outreach: Active outreach and capacity -building initiatives to promote AEO programs 
among MSMEs.  
• Tiered Systems: Some economies  offer different levels of certification based on 
compliance and operational capabilities.  
• Financial Support: Economies like the Republic of  Korea  provide financial support to 
MSMEs to help them meet AEO requirements.  
2.4.  Key Focus Areas:  
• Security: Ensuring that MSMEs meet the security criteria while allowing for flexibility in 
implementation.  
• Compli ance: Emphasis on maintaining a high level of compliance with Customs and 
trade regulations.  
• Trade Facilitation: Offering benefits such as reduced Customs checks, priority in 
clearance procedures, and recognition as trusted traders.  
2.5.  Key Lessons Learned:  
• Inclusivity: It is essential to ensure that AEO programs are inclusive and accessible to 
all traders , including MSMEs.  
• Continuous Feedback: Regular feedback mechanisms can help fine -tune the program to 
better suit the needs of MSMEs.  
• Collaboration: Collabora tive efforts between Customs administrations, businesses, and 
other government agencies can enhance the effectiveness of AEO programs.  
2.6.  Some programs worth highlighting for their special provisions and outreach programs for 
MSMEs are the European Union; Hong Kong, China; India and the Republic of  Korea . 
3  COMPILATION OF INITIATIVES  
3.1  WCO SAFE Framework  
3.1.  The World Customs Organization SAFE Framework of Standards  is a comprehensive set of 
guidelines aimed at enhancing the security and facilitation of international trade by setting forth 
principles and standards that WCO members should adopt as a minimum threshold. The framework, 
which was launched in 2005, emphasizes a holistic approach to se cure the international trade supply 
chain, while also ensuring predictability. It seeks to strengthen cooperation between Customs 
administrations, businesses, and other government agencies.  
3.2.  The framework comprises five core elements:  
• Harmonizing advance el ectronic cargo information for all shipments.  
• Adopting a consistent risk management approach.  
• Conducting outbound inspections of high -risk cargo upon request.  
• Offering benefits to businesses meeting security standards and best practices.  
• Promoting cooperation with other governmental agencies.  
3.3.  Based on these core elements, the SAFE Framework rests on three pillars:  
• Customs -to-Customs: Enhancing network arrangements to promote secure 
international trade supply chains, focusing on standards and technic al specifications for 
implementation between Customs administrations.  INF/MSME/W/47/Rev.1  
 
- 6 - 
 
  • Customs -to-Business: Establishing partnerships with businesses, emphasizing the role 
of Authorized Economic Operators (AEOs), and creating an international system for 
identifying private  businesses that offer high security guarantees concerning their role 
in the supply chain.  
• Customs -to-Other Government Agencies: Strengthening cooperation between Customs 
and other government agencies, considering various regulatory and security 
perspectiv es. 
3.1.1   AEOs in the context of the WCO SAFE Framework  
3.4.  The WCO's flagship AEO program, introduced in 2007, is a key component of the 
Customs -to-Business Pillar of the SAFE Framework. It is based on the quality accreditation of 
Customs routines that use IT to fa cilitate cross -border trade procedures. AEOs are recognized as 
secure and trusted trading partners, which means they benefit from simplified and rapid -release 
procedures. The SAFE AEO program is comprehensive and ensures the fulfilment of obligations in 
Article 7.7 of the WTO Trade Facilitation Agreement and Transitional Standard  3.32 of the 
Revised  Kyoto Convention . Mutual recognition of the AEO status between economies is also 
promoted  so as to further standardize procedure s by coordinating efforts across economies .5 
3.5.  The WCO SAFE Framework establishes a structured approach to secure and facilitate 
international trade, with the AEO program being a pivotal component. Businesses that adhere to the 
standards and best practices of the framework can achieve AEO status, benefiting from streamlined 
operations, reduced inspections, and enhanced gl obal trade operations.  
3.2  National Initiatives  
3.2.1   Argentina  
3.2.1.1   Background Info  
3.6.  The Argentinian AEO program  was launched with General Resolution 4150/2017, which 
implemented the new Authorized Economic Operator programme.  
3.7.  External Note No. 48/2008 provides a specific programme for MSMEs .6 
3.8.  Accreditation (components, process) : 
a. General requirements7:  
• To comply with the rules and if appropriate, to provide a warranty.   
• To submit the application to the Customs General Directorate, together with the 
additional documentation proving the fulfilment of the requirements.   
• To describe the production process, t he transportation, the security rules, among other 
things (secure supply chain ).  
• Availability of the computerized management system – inventory and control. The 
controls are risk -based.   
 
5 Mutual Recognition Arrangement/Agreement Strategy Guide , WCO (2021),  https:/www.wcoomd.org/ -
/media/wco/public/global/pdf/topics/facilitation/instruments -and-tools/tools/safe -package/strategy -guide -for-
aeo-mutual -recognition.pdf .  
6 Compendium  of Authorized Economic Operator (AEO) Programmes , WCO (2010), p. 12: 
https://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/research/research -paper -
series/aeo_compendium1.pdf?la=en . 
7 Compendium of Authorized Economic Operator (AEO) Programmes, W CO (2010), 
https://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/research/research -paper -
series/aeo_compendium1.pdf?la=en . INF/MSME/W/47/Rev.1  
 
- 7 - 
 
  • Availability of the image control system that facilitates a fluent a nd permanent 
communication with the Customs control areas. Solvency criteria are lower for 
MSMEs.  The fulfilments of the tax and Customs obligations are taken into account.  
3.9.  Benefits:  
• Cost and time  savings . Reduction of operational costs for the operators.   
• Anticipation of the consignments sent to other economies .  
• Competitive difference with other operators.   
• Use of non -intrusive technology for cargo control.   
• International accreditation of the supply chain.   
• Identification as a Reliable Operator by other Customs administrations.   
• Access to the main facilities at the ports of entry in the economies  of destination.   
• Secure and smooth transportation of goods.   
• Keeps the integrity of the shipment.  
3.2.1.2   MSME -specific measures  
3.10.  Solvency criteria are lower for MSMEs. The fulfilments of the tax and Customs obligations are 
taken into account .8 
3.2.2   Australia  
3.2.2.1   Background Info  
3.11.  The AEO program in Australia, called the Australian Trusted Trader program  (ATT), was 
launched on 1 July 2016.  
3.12.  The Australian  Trusted Trader Program  currently has over 930 accredited businesses in a 
variety of industries. Around 48% are small and medium -sized enterprises . 
3.13.  Accreditation (components, process)9: 
• The entity completes a n online form  that requests information against Australian 
Trusted Trader  qualification criteria.  
• The Australian Border Force will ensure compliance with Australian Trusted Trader  
qualification criteria by undertaking:  
o an assessment to determine whether the entity meets eligibility criteria, inclusive 
of an Australian Business Number, two years trading history, and financial 
viability,  
o a review of the entity 's documentary applica tion, and 
o physical validation of an entity 's supply chain security and trade compliance 
practices.  
• If the application is approved, the entity will enter into an Australian Trusted Trader  
Legal Agreement with the Australian Border Force. This outlines the conditions of 
Australian Trusted Trader  accreditation,  and the trade facilitation benefits available to 
the entity.  
 
8 Compendium of Authorized Economic Operator (AEO) Programmes, W CO (2010), p. 20: 
https://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/research/research -paper -
series/aeo_compendium1.pdf?la=en . 
9 Compendium  of Authorized Economic Operator Programmes, WCO (2020), 
https://www.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 8 - 
 
  • The Australian Border Force works with the accredited Trusted Trader to manage 
ongoing compliance  and supply chain security improvement , through periodic 
revalidation  and other ongoing assurance activities . 
3.14.  Benefits:  
a. Current Australian Trusted Trader  benefits include:  
• Differentiated examinations.  
• An account manager.  
• Priority trade services.  
• Use of Australian Trusted Trader logo. 
• MRAs.  
• A monthly import / export report.  
• Streamlined process to become an Accredited Sponsor under the Temporary 
Work (Skilled) Visa (subclass 457) Programme.  
• Invitation to the Australian Trusted Trader Symposium and Industry Advisory Group.  
• Consolidated cargo clearance . 
• Consolidated cargo reporting.  
• Streamlined access to the APEC Business Travel Card.  
• Duty referral.  
• Origin advance ruling and origin waiver benefit.  
3.2.2.2   MSME -specific measures  
3.15.  Australia engaged  MSMEs during t he design phase and listened to their specific concerns. 
Australia used a formal consultative working group with MSMEs to design the "Outcomes -Based 
Approach " used in the security standards. By ensuring there was MSME buy -in from the beginning, 
Australia was able to address concerns about the program targeting big businesses without a 
sufficient  return on investment for MSMEs. This "Outcomes -Based Approach " to security standards 
specifies the required security outcome, and the operators describe how those standards are being 
met in their individual circumstances. This approach was explicitly designed to foster MSME 
participation in the security chain .10 
3.16.  Australi a has a budget for AEO outreach programs and capacity -building.  It actively 
participates in capacity -building activities in economies in the Asia -Pacific region. The funds for this 
activity come from a broader international development budget, which is use d for other purposes 
beyond AEO outreach programs. Outreach programs included hosting other Customs agencies in 
Australia to give them training and information on the policy framework and operation of the 
Australian Trusted Trader Programme .11 
3.2.3   Brazil  
3.2.3.1   Background Info  
3.17.  The Brazilian AEO program  was launched in December 2014.  
 
10 Study of APEC Best Practices in  Authorized Economic Operator (AEO) Programs , APEC (2016) , 
https://www.apec.org/docs/default -source/publications/2016/5/study -of-apec-best-practices -in-authorized -
economic -operator -aeo-programs/apec -aeo-best-practices -final-report_may -2016.pdf . 
11 "AEO in APEC Economies ", Maria Elena Sierra Galindo  (2018), https://www.apec.org/docs/default -
source/Groups/SCCP/AEO -in-APEC -Economies -Study -Report -2018_revised -
version.pdf?la=en&hash=6FC219524114C1B9B83E9A6AE2B2DE7868AA5EB3&hash=6FC219524114C1B9B83E
9A6AE2B2DE7868AA5EB3 . INF/MSME/W/47/Rev.1  
 
- 9 - 
 
  3.18.  For certification in the Brazilian AEO Programme compliance shall be verified with the 
following, according to the chosen system: AEO -Security  or AEO-Compliance. The g eneral 
requirements  are the followin g12: 
• An appropriate record of compliance .  
• Computer -based system to manage commercial, tax, financial and operational  
records . 
• Financial solvency .  
• Human Resources policy . 
• Effective communication.  
3.19.  Besides that, there are a ppropriate Security Standards (for AEO -Security ) and a ppropriate 
Compliance Standards ( for AEO -Compliance).  
3.20.  Accreditation :  
• Fill in an online application and a self -assessment questionnaire13.  
• Customs performs a risk analysis and a physical inspection of the applicant.   
• Customs awards/rejects the AEO certification.   
• Monitoring of AEO after certification to ensure compliance level is maintained.   
• Customs suspends/revokes the AEO certification (if needed).  
3.21.  The conditions for acceptance and rejection of the applicant as well as suspension and 
revocation of the AEO certification are laid down in the legislation.  
3.22.  Benefits : 
a. General  benefits (to all operators):  
• Specially appointed AEO Customs Support Officer .  
• AEO List on Customs' website.   
• Use of the AEO program logo.  
• Priority when applying for a different AEO type.  
• Active participation in updating laws and Customs procedures related to AEO 
(Consultative Group ).  
• Participation in workshops and training course s. 
• Priority in warehouses.  
b. Benefits to AEO -Security:  
• Lower rate of document and physical controls for export declarations .  
• Priority on processing the export declarations . 
• Guarantee waiver for Customs transit . 
• Priority access for the certified O EA transporter to Customs facilities and loading and 
unloading operations . 
• Benefits granted in Mutual Recognition Agreements (MRAs) . 
 
12 Compendium  of Authorized Economic Opera tor Programmes, WCO (2020), 
https://www.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium.pdf . 
13 https://portalunico.siscomex.gov.br/portal/ .  INF/MSME/W/47/Rev.1  
 
- 10 - 
 
  c. Benefits to AEO -Compliance:  
• Priority in the analysis of Advance Ruling requests on the tariff classification of goods  
(maxim um of  40 days ).  
• Guarantee waiver for temporary admission  for economic use . 
• Lower rate of document and physical inspections.  
• Immediate processing of the selection for Customs clearance channels.  
• Priority control of the declarations selected.  
• Pre-arrival pr ocessing of the import declaration (sea and air freights).  
• Possibility of selection for the green channel of inspection in case of temporary 
admission.  
3.23.  Currently, MSME s represent approximately 44 % of the AEO program14. 
3.2.3.2   MSME -specific measures  
3.24.  The Brazilian AEO Programme also wanted to attract small and medium -sized 
enterprises  (SMEs). To do so, informative lectures and seminars have been organized across the 
economy , with more than 15,000 people participating thus far. The MSMEs that have already b een 
certified are mostly cargo agents and transportation companies, with most of them achieving AEO -
Security certification.   
3.25.  Making the certification process simple and transparent, ensuring all information is available, 
and promoting the new approach and philosophy of the AEO Programme were the best ways to 
attract companies of all sizes into the Programme. A comprehensive website has also been developed 
to provide all necessary information on becoming an AEO, including the legislative text, application 
forms, explanatory videos, the list of requirements and, of course, a link to an online platform where 
companies can enter their application and related documents .15 For the development of the AEO 
program, a public consultation was conducted including MSMEs.  
3.2.4   Canada  
3.2.4.1   Background Info  
3.26.  Canada 's AEO program , called the Partners in Protection (PIP) program was launched first in 
1995 and revised in  2002 and 2008.  
3.27.  Accreditation  (components, process)16: 
a. Program  Membership Application Process:  
• Applicants to the PIP program complete and submit a Security Profile (the program 's 
application form) in which they provide detailed information on how they me et the 
program 's minimum security criteria, including: physical security and access controls; 
procedural security; conveyance, cargo, and equipment (container, trailer and rail car) 
security; data and document security; personnel security; security trainin g and 
awareness; and business partner security.  
• The Security Profile is reviewed, concerns identified, and a thorough risk assessment 
performed.  
 
14 For classification, the criteria established in Law No. 123/2006 were considered.  
15 "From "red tape " to "red carpet ": how the Brazilian AEO Programme has brought Customs procedures 
to an entire new level ", WCO (2021) , https://mag.wcoomd.org/magazine/wco -news-88/brazil_aeo . 
16 Compendium  of Authorized Economic Operator Programmes, WCO (2020), 
https://www.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 11 - 
 
  • An onsite validation of the company is performed to confirm the program requirements 
are met.  
• The company is invited to sign the Terms and Conditions of PIP Membership, in which 
they commit to maintaining PIP's minimum -security  criteria and providing any updates 
to their information in a timely manner.  
b. PIP members are revalidated at least once every four  years, in which an updated 
security profile, risk assessment, and site validation are performed.  
3.28.  Benefits :  
• Lower rate of phy sical examinations.  
• Access to Canada Border Services Agency (CBSA) expertise (assignment of a single 
contact for Customs issues).  
• Dedicated access lanes at certain ports of entry for eligible highway carriers (FAST 
lanes).  
• Program communications and sta keholder consultation.  
• Recognition by international Customs administrations via MRAs. Enhanced industry 
marketability as an accredited low -risk company.  
• The PIP program is factored into the Canada Border Services Agency 's Business 
Resumption Plan in the event of trade flow disruptions . 
3.29.  As of July 2019, 1 ,512 MSMEs were accredited as AEOs in Canada out of 2 ,088 total 
AEO importers and exporters  (72.4%) according to IDB studies17, 18. Small and medium enterprises 
(i.e., 500 employees or less) represented 88 % of the total number of applicants  in April 2010.19 
3.2.4.2   MSME -specific measures  
3.30.  In Canada , PIP activities have largely contributed to increased awareness and hence better 
inclusion of MSMEs into the AEO program. Moreover, ensuring the availabilit y of a sustainable and  
skilled team makes the process easier and more efficient .20 
3.31.  Canada's free trade agreements (FTAs) include provisions to address the specific interests, 
needs, and unique challenges that MSMEs may face in doing business in foreign mar kets. The 
Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) was Canada 's first 
FTA to include a stand -alone chapter on MSMEs. Canada has since concluded additional FTAs that 
include dedicated MSME chapters.  
3.32.  Canada offers a good example of SME representation, with  a Small Business Lens Checklist 
that provides a list of SME considerations for Canadian policymakers that encourages consultation 
at the earliest stages of policy and programme development. The WCO also has a simila r model 
checklist available for Customs administrations to review their policy and programmes from the 
perspective of SMEs .21 
 
17 "Integrating SMEs in Authorized Econo mic Operator Certification: Improving SME Participation in 
APEC Secure Trade ", APEC (2021), https://www.apec.org/docs/default -source/publications/2021/2/integrating -
smes-in-authorized -economic -operator -certification/221_sccp_integrating -smes -in-authorized -economic -
operator -certification -2.pdf?sfvrsn=8c0ca64c_1 . 
18 Compendium of Authorized Economic Operator (AEO) Programmes, W CO (2010),  
https://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/research/research -paper -
series/aeo_compendium1.pdf?la=en . 
19 Compendium of Authorized Economic Operator (AEO) Programmes, W CO (2010),  
https://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/research/research -paper -
series/aeo_compendium1.pdf?la=en . 
20 Authorized Economic Operator Programs in Islamic Countrie s, COMCEC (2018), 
https://sbb.gov.tr/wp -content/uploads/2019/06/Improving -Authorized -Economic -Operators -Programs -in-the-
OIC-Member -States.pdf . 
21 "Making the WTO Trade Facilitation Agreement Work for SMEs ", ITC (2016), 
https://www.unescap.org/sites/default/files/MakingWTOTFAWorkforSMEs.pdf . INF/MSME/W/47/Rev.1  
 
- 12 - 
 
  3.2.5   China  
3.2.5.1   Background Info  
3.33.  The AEO program in China was launched on 1 April 2008. After several rounds of revision and 
improvement, the current AEO program was officially implemented in November 2021.  
3.34.  Accreditation requirements:   
• The certification standards for AEO enterprises are in a "1+1" model, i.e. general criteria 
and specific criteria. An AEO enterprise shall be in compliance with both general criteria 
and the corresponding individual criteria.  
a. General criteria comprise:  
• Internal control:  
o Communication and cooperation with Customs ; 
o Import/export documentations ; 
o Information System ; 
o Internal audit and rectification . 
• Financial condition:  
o Relevant evidence on financial condition ; 
o No circumstance where the asset -liability ratio exceeds 95 % for five consecutive 
years.  
• Compliance : 
o Compliance  with laws and regulations ; 
o Import and export records on tax payment ; 
o Management requirements ; 
o External credit. 
• Trade security:  
o Site security ; 
o Personnel security ; 
o Goods and articles security ; 
o Transportation security ; 
o Business partner security ; 
o Security training on Customs affairs and trade. 
b. Specific c riteria:  
• The Specific Criteria for AEO enterprises are standards formulated by Customs according 
to different types and business scopes of enterprises.  
3.35.  Accreditation process :  
• Where an enterprise applies for certification of AEO, a written application and relevant 
documentation in accordance with the requirements of the Customs shall be submitted.  
• Customs shall review the application and relevant materials submitted by the 
enterprises and conduct the on -site verification pursuant to the general criteria of AEO 
and the corresponding specific criteria.  INF/MSME/W/47/Rev.1  
 
- 13 - 
 
  • Customs shall conduct the certification and draw the conclusion within 90 days as of the 
date of receiving the application and relevant documentation. Under special 
circumstances, the term of certification can b e extended for 30 days.  
• For enterprises that meet the criteria of AEO, the Customs shall issue an AEO Certificate. 
For enterprises that do not meet the criteria of AEO, the Customs shall issue a Decision 
Letter of Disapproval for Certification.  
3.36.  Both the Ce rtificate for AEO and the Decision Letter of Disapproval for Certification shall be 
delivered to the applicant and shall come into force upon the date of delivery . 
3.37.  Benefits :  
• The average inspection rate for import and export  of goods for regular enterprise s 
is 20%, the average inspection rate for MSMEs is lower, unless otherwise specified by 
laws, administrative regulations or special documents of the GACC . 
• The average spot check rate for origin survey of export goods of regular enterprises 
is 20%, the aver age rate for MSMEs is lower, unless otherwise specified by laws, 
administrative regulations or special documents of the GACC . 
• Priority in processing import and export clearance formalities and related procedures . 
• Priority in recommending procedure of regis tration of agricultural products, food and 
other export to other economies  (regions) . 
• Channels for Applying to the Customs for guarantee exemption . 
• Lower frequency of auditing and inspection . 
• Customs declaration facilitation before export cargoes arriving in the Customs 
supervision area . 
• Access to Customs -designated coordinators . 
• Clearance facilitation offered by Customs of economies  or regions with AEO mutual 
recognition . 
• Joint incentives measures provided by relevant administrations . 
• Priority of Customs clearance after resumption of international trade interrupted by 
force majeure . 
• Other management measures provided by the GACC.  
3.2.5.2   MSME -specific measures  
3.38.  The AEO program is open to all economic operators, including MSMEs, with no limitation on 
enterprise scope or operating sector.  
3.39.  Specific Supporting Service :  
• The GACC has set up an online service system providing training courses and FAQ 
interaction. In Shenzhen, Suzhou and several other cities, training bases have been 
establishe d and open to MSMEs for free. Moreover, at every level of Customs, there are 
officials designated to answer questions and solve problems for enterprises.  INF/MSME/W/47/Rev.1  
 
- 14 - 
 
  3.2.6   Dominican Republic  
3.2.6.1   Background Info  
3.40.  The Dominican Republic's AEO program22 was launched in March 2012  as part of the 
Government's general reform initiative to enhance security of trade in goods.23,24,25 From Presidential 
Decree 144 -12, the AEO program was introduced and later included in Customs Law. The Dominican 
Republic has MRAs with a number of trading partners, including the United States of America and 
Uruguay, with plans to increase the number of MRAs  in the future . 
3.41.  Accreditation : 
a. Application Process26: 
• Self-assessment questionnaire.  
• Application form.  
• Fulfilment and verification of the previous conditions.  
• Security profile.  
• On-site validation and reporting of results.  
• Certification.  
3.42.  Benefits27: 
• Express release: reduced number of physical inspections and examinations, as 
appropriate.  
• 24-hour release, 7 days a week.  
• Assignment of Account Agents to follow -up and operationalize the benefits of AEO within 
Customs.  
• Low rate of physical inspections and examinations, as appropriate.  
• Rapid release times, as appropriate.  
• Use of exclusive lanes.  
3.43.  The AEO programme is open to operators all al ong the supply chain with more than 
500 users.28  
 
22 OEA, República Dominicana, https://oea.aduanas.gob.do/ . 
23 "Launch of the Dominican Republic's AEO Programme", WCO (2012) , 
https://www.wcoomd.org/en/media/newsroom/2012/march/launch -of-the-dominican -republics -aeo-
programme.aspx .  
24 "Getting Down to Business: Making the Most of the WTO Trade Facilitation Agreement", UNCTAD, 
https://unctad.org/system/files/non -official -document/wto -technical -note_ch07a07 -07_en.pdf . 
25 " Trade facilitation implementation for authorized operators ", DCA Aduanas, Jovanny Feliz, AEO -DR.  
26 "Compendium of Authorized economic Operator Programmes", WCO (2020), 
https://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/facilitation/instruments -and-tools/tools/safe -
package/aeo -compendium.pdf . 
27 "Compendium of Authorized economic Operator Programmes", WCO (2020), 
https://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/facilitation/instruments -and-tools/tools/safe -
package/aeo -compendium.pdf . 
28 "Operador Económico Autorizado certifica a nuevas empresas que se benefic iarán del programa 
Despacho en 24 Horas ", Presidencia de la Republica Dominicana (2022), Operador Económico Autorizado 
certifica a nuevas empresas que se beneficiarán del programa Despacho en 24 Horas . INF/MSME/W/47/Rev.1  
 
- 15 - 
 
  3.2.6.2   MSME -specific measures  
3.44.  The Dominican Republic launched a simplified Economic Operator programme in 2021 for 
MSMEs to help facilitate the export process. MSME are also able to benefit from the 24 -hour 
Clearance Program, thereby facilitating trade.29 
3.2.7   European Union  
3.2.7.1   Background Info  
3.45.  The European Union AEO program me is fully operation al since 2008 . In the European Union , 
the EU AEO programme is the uniform programme for all 27 EU Member States.  The EU established 
its AEO programme based on the internationally agreed standards by creating a legal base for in 
2005 through the 'security amendments ' to the Customs legislation. The legal provisions governing 
the EU AEO programme are contained in the  Regulation (EU) No . 952/2013 of the European 
Parliament and of the Council laying down the Union Customs Code  (UCC)  and its implementing and 
delegated acts.   
3.46.  Accreditation (components, process)30: 
a. Two types of authorisations: The AEOC (Customs Simplifications) enjoys easier 
admittance to simplifications under the Customs legislation. The AEOS (Security and 
Safety) benefits from a reduction of security and safety controls upon entry and exit  of 
the Customs territory of the Union . The AEOC and AEOS authorisations may be held at 
the same time resulting in one combined authorisation.  
b. Criteria:  
• Economic Operator (means a person who, in the course of his or her business, is 
involved in activities covered b y the Customs legislation).   
• Established in the EU Customs Territory.  
• Compliance with Customs legislation and taxation rules including no record of serious 
criminal offences relating to the economic activity of the applicant . 
• Demonstration of a high level of control of its operations and of the flow of the goods, 
by means of a system of managing commercial and, where appropriate, transport 
records, which allows appropriate Customs controls . 
• Proven financial solvency.  
And dependi ng on the type of  AEO status : 
• Practical Standards of Competence or Professional Qualifications  (AEOC) . 
• Appropriate Security and Safety Standards (AEOS) . 
3.47.  Granting of the AEO authorisation :  
• In general, application in the Member State where the main accounts  related to the 
activities relating to Customs  are held or accessible and at least part of AEO activities 
are conducted.   
• Self-assessment done by the applicant.   
• Thorough information  and consultation process between all M ember States via the 
AEO database.   
 
29 "Operador Económico Autorizado certifica a nuevas em presas que se beneficiarán del programa 
Despacho en 24 Horas ", Presidencia de la Republica Dominicana (2022), Operador Económico Autorizado 
certifica a nuevas empresas que se beneficiarán del programa Despacho en 24 Horas . 
30 Compendium  of Authorized Economic Operator Programmes, WCO (2020), 
https://www.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 16 - 
 
  • Detailed risk profile.  
• Compliance , solvency  and record keeping, qualifications/professional experience (AEOC 
only) requirements . (cf. above)  
• Risk assessment;  security  and security  check s (WCO criteria).  
• Detailed Audit followed by a monitoring plan for the period when the authorisation has 
been granted and based on the obligation for operators to notify any changes that might 
influence the decision to grant the AEO authorisation.  
3.48.  Benefits :  
• Easier admittance to Customs simplifications  (AEOC) . 
• Fewer physical and document -based controls : 
o related to security & safety  (AEOS) ; 
o related to other Customs legislation  (AEOC) . 
• Prior notification in case of selection for Customs control : 
o related to security & safety  (AEOS) ; 
o related to other Customs legislation  (AEOC) . 
• Prior notification in case of selection for physical control (related to safety and security). 
When necessary,  a physical control may be performed even though no prior notification 
of inspection was given . 
• Priority trea tment if selected for control . 
• Possibility to request a specific place for Customs controls . 
• Mutual Recognition with third party economies . 
• Indirect benefits, such as : 
o improved relationship with Customs ; 
o reduced theft and losses ; 
o fewer delayed shipments ; 
o improved planning ; 
o improved employee commitment ; 
o reduced security and safety incidents ; 
o lower inspection costs of suppliers and increased cooperation ; 
o reduced crime and vandalism ; 
o reduced problems through recognition of employees ; 
o improved security and communication between supply chain partners . 
3.49.   MSMEs represent approximately  70% of total AEOs in the EU  MSME -specific measures . 
3.2.7.2   MSME -specific measures  
3.50.  Special  provisions31: 
• The AEO pro gramme is open to all economic operators, including MSMEs. While the 
conditions and criteria for an AEO authori sation are the same for all, Member State 
administrations can take due account of the specific characteristics of economic 
operators, in particular of MSMEs, especially during the examination of the criteria for 
the authori sation.  
 
31 Authorized  Economic Operators  Guidelines , European Commission (2016),  https://taxation -
customs.ec.europa.eu/system/files/2017 -03/aeo_guideline s_en.pdf . INF/MSME/W/47/Rev.1  
 
- 17 - 
 
  • Different measures can be implemented to fulfil the AEO criteria or to demonstrate 
conformity with the criteria, depending on the size of the operator.  
• EU AEO guidelines provide further guidance  (and examples)  on how flexibility should be 
applied in practice.  
• SMEs can demonstrate compliance with requirements through measures considered 
appro priate by the Issuing  Authority. For instance, micro and small businesses can meet 
expectations through other appropriate measures.  
• In cases where the applicant is an MSME, especially a micro or small company, it can 
have a different management and organizational structure  without a real distinction of 
the internal roles or working position . In such cases, the applicant's formal statement 
could be considered sufficient.  
• For security awareness training, mechanisms for the education and training of per sonnel 
should be appropriate to the size of the enterprise. For micro  enterprises , documented 
oral training, and a recall of basic security and safety requirements may be accepted by 
Customs authorities.  
3.51.  The trade contact group with industry stakeholders , including MMSEs,  is regularly consulted 
with regards to the development on the AEO programme. Moreover, surveys of the AEO operators 
were conducted in 2022.  
3.2.8   Fiji 
3.2.8.1   Background Info  
3.52.  Fiji's Gold Card Service  was launched on 20 November 2012. The Service was later expanded 
and launched as the Fiji AEO program in January 2019.  
3.53.  Gold Card Service provides priority and privileged services to highly compliant cus tomers. Its 
intent is to encourage customers to meet tax and Customs obligations and to modernize services to 
a commercialized aligned service. These customers enjoy instant tax receipting of tax payments, 
lodgement of returns, assessment reviews, tax clea rance certificates, issuance of Certificate of 
Exemption (COE) and other services offered by Fiji Revenue and Customs Service ( FRCS) without 
having to queue in line at the counter.  
3.54.  Being a member of the Authorized Economic Operators (AEO s) has a number of extensive 
benefits including greater facilitation and self -certification to entities who have demonstrated a 
strong internal control system and compliance with tax and Customs laws. These benefits include 
deferred payment of import duties,  bond and bank guarantee waivers in bonded warehouses, tanks 
and private bond facilities. Inspection of goods under Customs profiles is also waived for AEO 
members for smooth facilitation of trade.  
3.55.  Accreditation : 
• Expression of Interest from companies.  
• Companies that require Tax & Customs service daily.  
• Topmost revenue contributors to Customs & Tax prioriti zed.  
• Excellent compliance history in both Customs & Tax responsibilities identified.  
3.56.  Benefits :  
a. The Gold Card Unit provides the following services to all Gold Card members:  
• Attend to all Tax and Customs general enquiries.  
• Process Tax and Customs clearances applications.  
• Facilitate and give preference to the processing of returns, applications, lodgements, 
requests, services, and review of assessments  without compromising compliance.  INF/MSME/W/47/Rev.1  
 
- 18 - 
 
  • Receipt payment of all taxes and penalties.  
• Direct referrals within all Fiji Revenue and Customs Authority (FRCA) business units.  
• Introduction of the Approved Economic Operator program.  
• Privileged Services . 
b. Some of the benefits of being a Gold Card member include:  
• Priority services and personal baggage duty free allowance of up to USD 2,000 at 
international arrival counters.  
• Priority services for passports and permits at the Immigration Department . 
• Baggage collection and escort services by Airports Fiji Limited.  
• Express lane and priority services for all inspection and clearance services at Biosecurity 
Authority of Fiji.  
• Express lane for all Land Transport Authority services.  
• Priority check -in at the Tabua Club Counter whenever the member is flying on the 
national airline, Fiji Airways.  
3.2.8.2   MSME -specific measures  
3.57.  The FRCS Information Support Centre ensures that all customer segments understand their 
registration, filing, payment and their requirements of reporting. To meet the needs of the growing 
population of MSMEs, FRCS has setup a MSME Support Centre through the Information Support 
Centre. The Centre provides MSMEs with free advis ory services including business registration, filing 
of returns, payments, VAT registration, Tax and Customs incentives available to them, budget 
changes that will impact them, tax clearance processing and other tax and Customs related 
queries .32 
3.2.9   France  
3.2.9.1   Background Info  
3.58.  France is part of the EU AEO program.  
3.2.9.2   MSME -specific measures  
3.59.  Customs has developed a sponsorship project together with the Union des enterprises  de 
Transport et de Logistique de France  (TLF) to assist their MSMEs to become AEOs. Under the project, 
large, certified companies provide free support to MSMEs, offering them training and helping them 
to review their process according to the AEO programme requirements, if needed.  
3.60.  "Business  Advisory Offices " have been created in every Customs region al division, offering 
potential applicants personalized support. The local advisory team approaches companies about the 
AEO programme and what AEO status means, assisting interested companies to prepare themselves, 
including the filling -in of the  "self-assessment questionnaire ".33 
3.2.10   Hong Kong, China  
3.2.10.1   Background Info  
3.61.  The Hong Kong Authorized Economic Operator Programme  was formally launched in 
April 2012, following the successful conclusion of a pilot scheme the previous year.  
 
32 Our Approach to Compliance , FRCS, https://www.frcs.org.fj/about -us/voluntary -tax-compliance/our -
approach -to-compliance . 
33 "Second WCO Global AEO Conference u nder the spotlight" , Laure Tempier (2014),  
https://www.worldcommercereview.com/publications/article_pdf/859 . INF/MSME/W/47/Rev.1  
 
- 19 - 
 
  3.62.  Accreditation34:  
a. Requirements:  
• A history of good compliance with Custo ms requirements.   
• A good maintenance of verifiable commercial records.   
• Proven financial solvency .  
• Appropriate security and safety measures.  
b. AEO Status: Tier 1 and Tier 2 . 
c. Process:  
• Companies conduct a self -assessment on their internal policies and operational 
procedures against the pre -determined criteria set under the AEO Programme.   
• Companies submit applications to Customs.   
• Customs conduct documentary check and on -site validation visits. 
• Customs grant AEO status and issue Certificates to companies which fulfil the 
pre-determined criteria set under the AEO Programme  with a validity of three years . 
3.63.  Benefits35: 
• Reduced  Customs inspections.   
• Prioritized Customs clearance.   
• Strengthened competitiveness and marketability.  Enhanced goodwill as a secure trader 
with industry quality mark.  
• Privileged benefits granted by other economies under MRAs . 
3.64.  Small and medium -sized enterprises (SMEs) represent around 20% of companies accredit ed 
as AEO s in Hong  Kong, China .  
3.2.10.2   MSME -specific measures  
3.65.  Over 98% of the local industries are SMEs . Hong  Kong, China is mindful of introducing a 
programme that could provide a level playing field for all stakeholders. The accreditation criteria are 
thus prudently worked out to ensure their applicability to local companies.  
3.66.  With this concern in mind, Hong  Kong, China formulated a 2 -tier free and voluntary 
accreditation programme which is open to local companies engaging in business principally related 
to the international supply chain.  Companies applying for a lower tier are required to meet certain 
basic criteria whereas additional criteria are required for a higher tier.  
3.67.  The 2 -Tier Certification system in the Hong  Kong AEO Programme encourages MSMEs to jo in. 
Tier 1 involves 10 security criteria, while Tier 2 adds two additional security criteria.  
3.68.  An Account  Manager is designated to assist MSMEs in the accreditation process, sharing best 
practices and providing guidance throughout the process.  
3.69.  The AEOs reco gnized so far, including MSMEs, could meet the accreditation criteria without 
having to make  major changes or investment.  Recognizing that the extent of compliance depends 
 
34 "Compendium of Authorized Economic Operator Programmes ", WCO (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . 
35 "Compendium of Authorized Economic Operator Programmes ", WCO (2018),  
http://www2.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium2018.pdf . INF/MSME/W/47/Rev.1  
 
- 20 - 
 
  on the size, nature and model of the business, etc., Hong  Kong, China exercises flex ibility in the 
accreditation process as appropriate.  
3.70.  Success of the Programme hinges on the active participation of local traders.  Provision of 
tangible incentives  for participants is thus another issue that Hong  Kong, China has to address when 
implementin g the Programme.  Taking into account that Hong Kong is a free port, Customs facilitation 
to traders in terms of reduced or prioritized inspection may not be great incentives for wide 
participation in the Programme.  As such, Hong  Kong, China focuses on iden tifying the long -term 
substantial benefits to local traders through the enhanced export competitiveness and marketability 
upon their accreditation as AEOs.  More importantly, the AEO status is a symbol of trusted traders. 
They will enjoy more privileged benefits at international level under MRAs.  
3.71.  Consultation with MSMEs : There is mention that Hong Kong, China conducted a pilot scheme 
to test the applicability  of the Programme in Hong Kong , China  and collected valuable comments 
from related  industries , including SMEs,  to fine -tune the Programme .36 
3.2.11   India  
3.2.11.1   Background Info  
3.72.  The Indian AEO programme  was introduced as a pilot project in August 2011. It was later 
amended to include SAFE Framework Standards in 2012. A comprehensive, unified trade facilitation 
initiative was launched by merging the then -existing Accredited Client Programme (ACP) and the 
ongoing AEO scheme of 2012 in the form of a r evised AEO programme in July 2016. Further 
simplification for financial solvency and decentralisation of the AEO application processing took place 
during 2018.  There are three tiers of certification for the Indian AEO programme, with Tier 1 (T1) 
the most basic  requiring document submission only  and Tier 3 (T3) the most  demanding onsite 
verification and two years of Tier 2 ( T2) compliance.37 
3.73.  Accreditation38: 
• The business entity must be established in India.  
• The business must be involved in Customs -related activities.  
• The business must have handled a minimum of 25 Customs documents, i.e. , either 
shipping bills or bills of entry in the last financial year.  
• The business must be carrying out the Customs -related a ctivity for at least the last 
three financial years.  
• The business should not be issued with a show -cause notice during the last 
three financial years involving forgery, fraud, clandestine removal of excisable goods, 
outright smuggling, or cases where the s ervice tax is collected but not deposited with 
the Government.  
• The business must be financially solvent during the last three financial years preceding 
the date of application for AEO status.  
• The business must have appropriate internal measures and control s to ensure the 
security and safety of the business and its supply chain.  
• The business must have a system of managing commercial and transport records.  
 
36 "Implementation of Hong Kong  Authorized Economic Operator Programme ", Office of Supply Chain 
Security Management Customs and Excise Department  Hong Kong, China , 
https://www.wto.org/english/tratop_e/tradfa_e/case_studies_e/at_hkg_e.doc . 
37 AEO certification, ASC (2021), https://www.ascgroup.in/service/aeo -certification/   
38 Compendium of Authorized Economic Operator Programmes , WCO (2019),  
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 21 - 
 
  3.74.  Benefits :  
a. The major benefits  of AEO certification are:  
• Inclusion of direct port delivery of imports fo r AEOs.  
• Inclusion of direct port entry for factory -stuffed containers intended for export by AEOs.  
• Provision of deferred payment of duties – delinking duty payment and Customs 
clearance for AEO T2 and AEO T3.  
• Benefits of Mutual Recognition Agreements wi th other Customs administrations for AEO 
T2 and AEO T3.  
• Fast tracking of adjudications and refunds, including IGST refunds and disbursal of 
drawback.  
• Priority in processing and clearance of goods.  
• Tier-based bank guarantee waivers.  
• Designated Client Relationship Managers at each port to facilitate AEO Certificate 
holders.  
• Self-declaration of Standard Input -Output Norms (SION) AEO exporters in cases where 
SION is not notified.  
3.75.  As of 1 January 2024,  MSMEs represent around 45 % of AEOs.  
3.2.11.2   MSME -specific measures  
• A liberalised AEO package for MSMEs  has been introduced.  
• Special focus on MSME s. 
• The Central Government has introduced measures to help reduce the "order -to-cash" 
cycle by improving logistics and reducing the Customs clearance turnaround time for 
MSMEs.  
3.76.  Liberali zed MSME AEO Package Overv iew: 
a. The Central  Board of Indirect Taxation & Customs (CBIC) introduced the  'Liberali zed 
MSME AEO Package' to facilitate MSME s for AEO T1 and AEO  T2 certification. This 
package aims to provide a more relaxed set of compliance criteria for MSMEs.  
3.77.  Features of the Liberali zed MSME AEO Package:  
a. Eligibility  Criteria:  
• The MSME applicant should have a valid MSME Certificate from the line -Ministry.  
• Once the AEO approval is granted, MSMEs should ensure the continuous status of 
"MSME " during the validity pe riod of the AEO Certificate.  
3.78.  Relaxations for MSMEs:  
• The condition that the business must have handled a minimum of 25  Customs 
documents in the last financial year was relaxed. MSMEs handling 10 documents 
(5 documents each half -year) are eligible and can apply for an AEO Certificate.  
• The condition of business carrying out Customs -related activities for the last 
three financ ial years was reduced to the last two financial years for MSMEs to obtain 
AEO status.  
• The condition of not receiving a show -cause notice during the last three financial years 
involving forgery, fraud,  clandestine removal of excisable goods, etc during the last 
three financial years was reduced to the last two financial years for MSMEs.  INF/MSME/W/47/Rev.1  
 
- 22 - 
 
  • The condition of the business being financially solvent during the last three  financial 
years was relaxed to last two financial years for the MSMEs to avail AEO status.  
• The v arious annexures required to be filed for AEO T1 and AEO T2 accreditation, i.e. , 
annexure A, B, C, D, E.1 to E.4 have been supplanted with two annexures, i.e. , MSME 
annexure 1 and 2.  
• The annexures required to be filed for AEO T2 accreditation, i.e. , annexu re E.5.1 and 
E.5.7 for physical verification has been rationali zed with one annexure of MSME 
annexure  3. 
• The time limit for processing the MSME AEO T1 and T2 applications was reduced to 
15 working days (usually one month) and three months (usually six  months), 
respectively.  
• The benefit of relaxation in furnishing a bank guarantee for the AEOs for MSME  AEO T1 
and MSME T2 was further relaxed to 25 % from 50 % and 10 % from 25 % required to be 
furnished by an exporter or importer who is not an AEO Certificate holder, respectively.  
3.79.   Since updating AEO programme is an ongoing process, MSMEs are regularly contacted for 
their feedback and suggestions.  
3.2.12   Indonesia  
3.2.12.1   Background Info  
3.80.  Since 2015, the Directorate General of Customs and Excise (DGCE) has been implementing 
the Authorized Economic Operator (AEO) program in Indonesia. This program is based on the legal 
regulations of the Minister of Finance N o. 227/PMK.04/2014 concerning Authorized Economic 
Operator s (AEO) and Regulation of the Director General of Customs and Excise N o. PER-4/BC/2015, 
concerning Procedures Granting Customs Recognition as an AEO. In the same year, Indon esia 
conducted a pilot phase by certifying five exporter -type operators as AEOs. As of 2023, 161 AEO 
companies in Indonesia have received AEO certification. Among them are 135 exporter -importer 
companies and 26 logistics -service -provider companies, includi ng Customs brokers, warehousing, 
and trucking service providers.  
3.81.  Regulatory changes were made to make the Indonesian AEO program more relevant as a 
result of updates to the 2021 WCO SAFE Framework of Standards, the 2021 AEO Implementation 
and Validation Gu idance, and the 2021 Strategy Guide for AEO Mutual Recognition, plus the WTO 
Trade Facilitation Agreement (Article 7.7 Authorized Operator). The Indonesian Minister of Finance 
recently issued a new regulation, namely Regulation N o. 137 of 2023, concerning Authorized 
Economic Operators  (Regulation No. 137). One of the aims of this Regulation is to make it easier for 
small and medium industries to obtain recognition as an AEO.  
3.82.  Accreditation requirements:  
a. To obtain recognition as an AEO, an Economic Operator must fulfil the following general 
requirements:  
• Have never committed a criminal act in the field of Customs and/or excise and taxation.  
• Have financial reports audited by a public accounting firm within the last two years.  
b. In addition to general requirements, AEOs must fulfil the following conditions and 
requirements:  
• Compliance with the provisions of laws and regulations in the field of Customs 
(Demonstrated Compliance with Customs Requirements) and related laws and 
regulations . 
• Satisfact ory System for Management of Commercial Records . 
• Financial Viability . 
• Consultation, Co -operation and Communication . INF/MSME/W/47/Rev.1  
 
- 23 - 
 
  • Education, Training and Awareness . 
• Security and safety management system, which consists of:  
o Information Exchange, Access and Confidentialit y; 
o Cargo Security ; 
o Conveyance Security ; 
o Premises Security ; 
o Personnel Security ; 
o Trading Partner Security ; 
o Crisis Management and Incident Recovery ; and 
o Measurement, Analyses and Improvement.  
3.83.  Fulfilment  of conditions and requirements may differ for each type of Economic Operator 
depending on the role and responsibilities of the Economic Operator in the international trade supply 
chain.  
3.84.  Benefits:  
a. General benefits (refer to the benefits that are provided t o all types of Economic 
Operators. These benefits are as follows):  
• Recognition as a partner by the DGCE . 
• Access to special services provided by the Client Manager.  
• Priority for inclusion in new programs launched by the DGCE . 
• Availability of Customs consult ation and/or assistance services outside of Customs 
Office working hours.  
b. Special benefits (privileges given to certain types of Operators, which may include the 
following (but are not limited to)):  
• Classified as a low -risk company . 
• Document checking and/o r physical examination based on risk management in 
accordance with applicable regulations . 
• Priority in obtaining simplification of Customs procedures . 
• Special services in the Customs sector for the smooth release and/or entry of the flow 
of goods from and/ or to the Customs Area at the port of unloading and/or loading by 
considering risk management . 
• Benefits which are regulated based on the provisions of laws and regulations in the field 
of Customs.  
c. Apart from general and special benefits, AEOs also get benefits in the form of:  
• Benefits agreed upon with other economies ' Customs administrations in a Mutual 
Recognition Arrangement . 
• Benefits provided by other Government agencies following statutory provisions.  
3.2.12.2   MSME -specific measures  
3.85.  In Regulation No. 137, there are facilities provided for small and medium enterprises (SMEs) 
to help them meet the necessary conditions and requirements .  INF/MSME/W/47/Rev.1  
 
- 24 - 
 
  3.86.  For the  financial solvency requirements, the following conditions should be met:  
• Have an adequate financial position to fulfil  all its financial commitments and obligations 
based on the nature of its business sector; and  
• Get: 
o Unqualified opinion; or  
o Minimum qualified opinion for small and medium industries/enterprises , 
based on financial reports that have been audited by a public accountant over the 
last two years.  
3.87.  There is also a provision in this Regulation that states that the fulfilment  of conditions and 
requirements may vary depending on the role and responsibilities of the Economic Operator in the 
international trade s upply chain. This provision allows for flexibility in meeting the conditions and 
requirements for different types of Economic Operators, including small and medium industries.  
3.88.  There are several obstacles in carrying out certification for MSMEs due to diffe ring definitions 
set by various Government agencies. For instance, one Government institution defines small, 
medium, and large industries based on the number of workers and/or investment value, while others 
define them based on investment value, net worth,  and sales proceeds. Even when similar 
parameters such as investment value are used, different reference numbers are assigned to each of 
these definitions, making it difficult to determine whether a company is included in MSMEs or not.  
3.89.  DGCE has undertaken several efforts to help MSMEs  get recognized as AEOs. These efforts 
include visiting MSMEs directly, distributing questionnaires to them, and actively promoting the AEO 
program  by inviting MSMEs to apply for it.  
3.2.13   Jamaica  
3.2.13.1   Background Info  
3.90.  The Authorized Economic Operator (AEO) Programme  of Jamaica addresses risks and 
vulnerabilities by streamlining the trade process using effective risk management techniques. These 
techniques separate importers into compliant and non -compliant categories, thereby allowing the 
Jamaica Customs Agency (JCA)  to focus scarce resources on non -compliant companies and reward 
compliant ones.  
3.91.  Having introduced this Programme, the JCA has seen:  
• Improved customer satisfaction . 
• Compliance with revenue payments.  
• Improved communication.  
• Reports of suspicious transaction s. 
• Minimized corruption.  
• Reduced smuggling.  
3.92.  The AEO programme in Jamaica was launched on 28 July 2014.  
3.93.  Accreditation : 
a. STEP 1  
• Completion of online Prequalification Questionnaire, Application & Self -Assessment 
Questionnaire . 
• Review of application by JCA to determine acceptance of application . INF/MSME/W/47/Rev.1  
 
- 25 - 
 
  b. STEP 2  
• Initial validation . 
• Initial Validation Findings Report submission to applicant . 
• 60-day validation follow -up after the initial visit for outstanding requirements . 
• 90-day validation follow -up, 30 -days after the 60-day validation follow -up for 
outstanding requirements . 
• Final Validation Report . 
c. STEP 3  
• Review and recommendation of Validation Report by AEO Committee . 
• Letter of denial / acceptance . 
• Where an application is reco mmended for approval a letter of acceptance along with 
Memorandum of Understanding  is sent to the company for signature and returned to 
JCA, thereafter the Company placed on all systems to commence processing of 
declarations as an AEO.  
• In the case of provi sionally accepted companies, i.e., companies given extensions to 
complete outstanding mandatory requirements, correspondence is sent notifying them 
of the extension.  
3.94.  Benefits : 
• Simplification of Customs processes.  
• Reduction in the inspection of cargo being imported and exported.  
• Possibility of requesting a specific place for Customs inspection to be conducted.  
• Easier access to authorizations and permits through the public sector.  
• AEO Public Sector Inter-Institutiona l Committee (PSIIC ). 
• AEO Private Sector Committee (PSC) . 
• Post clearance documentary inspection.  
• Stronger strategic alliance with the Customs Agency.  
• Assignment of an Account Officer for each AEO company . 
• Competitive advantage for the AEO compared to the non-AEO regard ing marketability: 
AEO status can lead to further business opportunities, as companies are considered 
secure and reliable traders.  
• Provides faster logistics handling.  
• Reduced tur naround time at ports resulting in cost benefits . 
3.95.  Of the total n umber of AEO companies participating in the Jamaica AEO Programme, MSMEs 
represents approximately 47% of which 11 companies are categorized as Small Enterprises and 
49 are categorized as Medium Enterprises.  
3.2.13.2   MSME -specific measures  
3.96.  The Jamaica Customs Agency  in collaboration with the Risk Management Unit targets large 
enterprises as well as MSMEs that are not on the AEO Programme by making contact and inviting 
companies to participate in sensitization sessions with a bid to have them join the programme.  
3.97.  The initial Trusted Trader programme of Jamaica was introduced in 2009. In 2012 Jamaica 
revamped the Trusted Trader Programme to include the AEO security requirements and conducted 
sensitization sessions across Jamaica to large, medium, and small companies. The se sessions were 
also extended to the Other Government Agencies as well as the Customs Brokers Associations and INF/MSME/W/47/Rev.1  
 
- 26 - 
 
  most importantly all the Divisions of the JCA to review the Jamaica AEO Programme, its process flow 
as well as the security requirements and Mem orandum of Understanding. From these discussions, 
process flows and documentations were agreed to by both private and public sector stakeholders 
and the Jamaica AEO Programme was launched in 2014.  
3.98.  Each AEO applicant is assigned an AEO Account Officer who i s responsible for conducting 
training and sensitization sessions as well as reviewing documentation and processes to give 
guidance to the AEO applicant on actions required to be successful in their application.  
3.2.14   Japan  
3.2.14.1   Background Info  
3.99.  The Japan AEO program  was introduced for exporters in 2006 and was subsequently expanded 
to include importers in 2007.  
3.100.   Accreditation39: 
a. General requirements:  
• Compliance record.   
• Proper ability to conduct operations.   
• Cargo conveyance/premises security.  
• Compliance programme.  
b. Accreditation:  
• Prior consultation (voluntary ).  
• Self-assessment.   
• Examination of documents, on -site audit for AEO status.   
• Post-authorisation audit. If there is a problem – "Administrative order for improvement ". 
If no change – the status is revoked.  
3.101.   Benefits : 
• Compliance -reflected examination and inspection.   
• Pre-arrival  lodgement of import declaration and permission.   
• Release of cargo before duty/tax payment declaration and duty/tax payment.   
• Periodical lodgement of duty/tax payment declaration.   
• Waive the requirement to place export goods into the Customs area.  
• Establishment of a new Customs warehouse only by notification to Customs.   
• Compliance -reflected reduced audit for warehouse operators.   
• No monthly fee for Customs warehouses.   
• Simplificatio n of Customs transit procedure.   
• Lodgement of import/export declaration to any Customs offices (to be introduced in 
autumn 2017) . 
 
39 Compendium of Authorized Economic Operator Programmes, WCO (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 27 - 
 
  3.2.14.2   MSME -specific measures  
3.102.   Engagement  with MSMEs: Japan has been promoting Economic Operators' participation in 
their AEO program , including MSMEs . They have taken proactive measures to ensuring easy access 
to their AEO program  by: 
• Assigning a Customs account manager for consultation purposes.  
• Allowing flexibility in how to meet the criteria of the AEO requirements based on t he 
circumstances of companies . 
• Proactive public relations . 
3.103.   These measures aim to make it easier for potential AEOs, including MSMEs , to participate in 
the AEO program and benefit from its advantages.  
3.104.   In developing its AEO program, Japan Customs consults wi th the private sector, including 
MSMEs, as necessary through opinion exchanges, public comments, etc.  
3.105.   The Japanese  Government developed and promoted the AEO program in close cooperation 
with the business sector , including MSMEs .  
3.2.15   Jordan  
3.2.15.1   Background Info  
3.106.   Jordan Customs  initiated an AEO program, known as the Golden  List (GL) program , in 2005. 
The very first step of the Golden List design of Jordan can be traced back to September  2003 when 
Jordan  Customs and the United  States Agency for International Development (USAID) agreed to 
design an AEO progra m. In other words, Jordan leveraged donor assistance to develop its 
GL program and succeeded in achieving recognition from U.S. Customs and Border Protection. 
The WCO SAFE Framework Standards, which were developed simultaneously, were integrated to the 
program. The design of the GL program in terms of compliance has benefited from the EU 's program 
as a benchmark.  
3.107.   Accreditation40: 
a. Three categories of compliance  exist: A (basic), B (important) and C (optional). To 
qualify as an  AEO the company must meet Customs requirements and security 
requirements as follows: compliance with A (basic requirements), with B (necessary 
requirements) with the possibility of developing plans to improve the necessary 
compliance and work to implement them within the specified time limits, and compliance 
as much as possible with C (optional requirements). Also , the company must achieve 
the required compliance standards by examining samples at all stages.  
3.108.   Benefits : 
• Self-improvement by self -checks.  
• Reduce number of inspections (by ex pansion of green lane assignments).  
• Reduce goods post -release compliance audits. Pre -arrival clearance of goods.  
• Goods release before completing Customs formalities. Give priority to the import and 
export companies and Qualifying Industrial Zones (QIZ) c ompanies in clearance 
procedures.  
• Allowed to remove the goods off working hours against undertakings presented by 
clearance companies in the clearance centres .  
• Exception of their goods from Customs escort except trucks loaded with cigarettes and 
alcoholic beverages.  
 
40 Compendium of Authorized Economic Operator Programmes, WCO (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 28 - 
 
  • Double public guarantees for commercial companies.  
• Double compact guarantees for clearance companies . 
• Providing consultancy and assistance and all possible facilitations.  
• Moral privileges such as letters of appreciation to the companies . 
• Publish names of members on the Customs websites . 
3.2.15.2   MSME -specific measures  
3.109.   Jordan  offers an AEO -like program called the Silver List  launched in 2017 to incentivize 
MSMEs to participate in trade pra ctices that are compliant and safe by offering some of the trade 
facilitations in the Golden List program. Furthermore, successful S ilver List  participants are invited 
to apply for the Golden List Program.  
3.110.   The Golden  List was expanded into a broader Trusted Trader Program that includes a Silver 
List that proactively identifies companies, particularly MSMEs, that have had no significant import or 
export issues and  'graduates ' them to a Silver List with privileges befor e consideration to Golden 
List. An additional goal of the program is to motivate committed companies with large business to 
apply for the Golden List Program.  
3.111.   Facilities  provided to the Silver List companies:  
• Expansion in green and yellow lanes ( Customs cl earance types).  
• Benefits of pre -clearance service in accordance with the applicable regulations.  
• Priority for the completion of the export and import Customs declarations for Silver List 
companies via special indication that appears electronically on the Customs declaration.  
3.112.   Customs select s the companies from importers and exporters based on analytical studies 
conducted by a Risk Management Directorate that assesses companies' complian ce to add the 
companies to the Silver List .41 
3.113.   As of October  2018, 50 importers and 12 exporters were in the Silver List. The companies 
in the Silver List are reviewed by office auditing at least once a year and continue their existence in 
the Silver List i n case they are compatible with membership conditions .42 
3.2.16   Korea, Republic of  
3.2.16.1   Background Info  
3.114.   The AEO program  in the Republic of  Korea was launched in April 2009.  
3.115.   Accreditation43: 
a. General requirements:  
• Legal compliance.  
• Internal control.  
• Financial solvency.  
 
41 Authorized Economic Operator Programs in Islamic Countries, COMCEC (2018), 
https://sbb.gov.tr/wp -content/uploads/2019/06 /Improving -Authorized -Economic -Operators -Programs -in-the-
OIC-Member -States.pdf . 
42 Authorized Economic Operator Programs in Islamic Countries, COMCEC (2018), 
https://sbb.gov.tr/wp -content/uploads/2019/06/Improving -Authorized -Economic -Operators -Programs -in-the-
OIC-Member -States.pdf . 
43 Compendium of Autho rized Economic Operator Programmes, WCO (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 29 - 
 
  • Security management.  
b. Accreditation process:  
• Submit the application (self -assessment, risk evaluation, statement on 
AEO management, and internal AEO manager).  
• Audit (documentary and on -site validation).  
• Assignment of the AEO Certificate classes according to the level of compliance: class  AA 
(90% or greater); class A (80 % or greater), or request for improvement measure.  
• AEO Certificate granted (valid for three years, renewal within six months before 
expiration) and a Customs Client Coordinator assigned.  
• Self-management/post monitoring.  
• Compliance assessment (by application or selection): class adjustment (especially 
AAA class needs greater than 95 % compliance and appropriate best practices to share 
with other companies), or request for improvement measures.  
3.116.   Benefits:  
a. General benefits: simplified and less physical inspection, simplified Customs procedures, 
less financial burden, etc. The benefits di ffer according to the types of AEOs and 
AEO classes.  
• Simplified and less physical inspection:  
o less physical inspection by the Customs in the ex/import process;  
o inspection at a place the importer wants.  
• Simplified procedures:  
o clearance without supporting trade documents;  
o exemption from pre -clearance audit as well as post -clearance audit;  
o provision of convenience in Customs clearance, etc. at international (air)ports to 
AEOs' representatives;  
o self-determination on application of Customs tariff ra tes, Customs duty 
reduction/exemption, and instalment payment of Customs duties and taxes.  
• Less financial burden:  
o exemption from the obligation to deposit collateral for import clearance;  
o monthly instalment payment of Customs duties and taxes.  
• Other: red uction of punishment for violation of Customs -related laws.  
3.2.16.2   MSME -specific measures  
3.117.   The Korea Customs Service (KCS) and the Korea AEO Association (KAA)  support  MSME s in 
obtaini ng the AEO Certificate. Specifically,44: 
• The Republic of Korea offers expedited AEO authorization examinations for MSMEs.  
• They have specialized AEO security criteria with lower eligibility to facilitate the 
acquisition of the AEO Certificate by MSMEs.  
• SMEs  are also provided with alleviated security criteria.  
 
44 "Smart AEO Certified System", Korea AEO Association (2018), 
https://na.eventscloud.com/file_uploads/3c43775df629b46d1e2df9abeda99371_SunbokKwon_180307KoreaAE
OTheroleofKoreaAEOAssociationSmartAEOCertifiedSystem.pdf . INF/MSME/W/47/Rev.1  
 
- 30 - 
 
  3.118.   Financial  Support: Businesses that can prove a lack of manpower and financial resources are 
provided with:  
• Consulting and training funds.  
• In some cases, funds to procure equipment and devices to meet AE O security standards.  
• The Republic of Korea Customs provides MSME consulting and educational support to 
help them acquire AEO certification, while shouldering 80 % of the costs for expenses.  
3.119.   The Republic of Korea  offers expedited AEO authorization examinations to MSMEs through 
multiple procedural preferential provisions, including a 'priority audit'. In order to facilitate MSME's 
access to the program, consulting fees are provided to the firms that show a lack of personnel and 
financial resources. Additionally, larger firms sign Memorandums of Understanding with their MSME 
partners to support their AEO authorization.45 
3.120.   The process  involves the following steps:  
• SMEs apply for support.  
• Korea AEO Association approves or rejects the application.  
• MSMEs contract with a consulting company.  
• Korea AEO Association manages the consulting company.  
• Korea AEO Association provides training for the applicant and AEO consultants.  
• An audit report is generated.  
• Approval is given.  
• Support expenses are provided by the Korea Customs Service.  
3.2.17   New Zealand  
3.2.17.1   Background Info  
3.121.   New Zealand 's AEO program, called the Secure Exports Scheme (SES)  was launched in 2004, 
and is open only for exporters.  
3.122.   Accreditation46: 
• The e xporter lodges application to join Secure Exports Scheme. The a pplication must 
be supported by a security plan, process map, site plan and a securit y plan from their 
transport operator(s). The security plan documents the policies, processes and 
procedures that the exporter has in place that show their export products are securely 
packed, accurately accounted for, sealed with a New Zealand Customs appr oved seal 
and securely transported to the point of export from New Zealand. If they use a 
third-party site to pack their export products into a container,  then a further security 
plan and site plan is required.  
• A validation process is undertaken by New Zealand Customs. This process includes a 
data integrity check on export documentation  and a  Customs data base check . A 
Situation Report is requested from the New Zealand Customs Intelligence Unit and site 
validation visits  are undertaken.  
• On completion of the validation process , a quality assurance check is undertaken on the 
application file to ensure the above processes have been completed and a Management 
Report is compiled recommending the application be approved or declined.  
 
45 Study of APEC Best Practices in Authorized Economic Operator (AEO) Programs , APEC (2016), 
https://www.apec.org/docs/default -source/publications/2016/5/study -of-apec-best-practices -in-authorized -
economic -operator -aeo-programs/apec -aeo-best-practices -final-report_may -2016.pdf . 
46 Compendium of Authorized Economic Operator Programmes, WCO (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 31 - 
 
  • The Manager Se rvice Delivery signs off on the recommendations in the Management 
Report.  
3.123.   If the application is declined the exporter is advised in writing on the reasons. If the 
application is approved New Zealand Customs and the exporter sign an approval document. This 
numbered approval document covers all the conditions the exporter must adhere to and includes a 
Customs approved seal that must be used to seal Secure Exports Scheme export containers.  
3.124.   Benefits : 
• Reduced export transaction fees for lodgement of all export entries.  
• Lower potential for intervention by New Zealand Customs which allows more time to 
load shipments and complete export documentation, lowering compliance costs.  
• Provides access to border clearances with economies  that have MRAs  with New Zealand 
Customs.  
3.125.   New Zealand Customs can provide advice and assistance for unexpected issues in respect 
of export goods with overseas border agencies that have a n MRA with New Zealand Customs.  
3.2.17.2   MSME -specific measures  
3.126.   New Zealand  Customs recognizes that every busines s is unique and security arrangements 
for cargo are different  for each business. For this reason, the approach taken by  Customs is 
outcome -based rather than inflexible.   
3.127.   In this regard , the Secure Exports Scheme (SES) outreach program is targeting developi ng 
MSMEs  in recognition that complexity to comply was a major inhibitor for small to medium -sized 
exporters. From 9 August 2023, Exporters, Secure Load Sites, and Transport Operators have been 
able to apply separately to become members of the SES online, i n one place, through a new digital 
platform. Extending the SES to include Secure Load Sites and Transport Operators will provide those 
businesses with the opportunity to become an accredited SES partner in their own righ t although it  
still require the expo rter (regardless of size) to demonstrate how they intend to comply with the 
terms of the minimum standards.  
3.128.   The new horizontal structure makes it easier for MSME exporters to apply if they use Secure 
Load Sites or Transport Operators that are already part of the SES. Previously both the Secure Load 
Sites and Transport Operators had to be part of exporter 's applications. This new structure allows 
MSMEs within the supply chain to grow their business independently and reduces the complexity 
required to become an SES partner. By having a ll parties in the secure supply chain becom e partners 
independently also gives Customs greater ability to assist with potential risks that the business , and 
their goods , could be exposed to.  The new digital platform simplifies and streamlines the process, 
making it easier and more accessible for MSM Es to apply and benefit from the scheme. As a result, 
the New Zealand Customs Service has seen an increase in applications received.  
3.129.   In 2019 , the New Zealand Customs Service also extended the SES to include air freight 
packages further support ing the busin ess model of MSMEs.  
3.130.   New Zealand 's approach is instructive, particularly since a large proportion of its businesses 
are MSME s. New Zealand takes an outcomes -based approach, asking exporters to demonstrate how 
they intend to comply with the minimum standards  and working with them to achieve mutually 
acceptable criteria .47,48 
 
47 "Study of APEC Best Practices in Authorized Economic Operator (AEO)  Programs ", APEC (2016), 
https://www.apec.org/docs/default -source/publications/2016/ 5/study -of-apec-best-practices -in-authorized -
economic -operator -aeo-programs/apec -aeo-best-practices -final-report_may -2016.pdf . 
48 "Integrating SMEs in Authorized Economic Operator Certification: Improving SME Participatio n in 
APEC Secure Trade ", APEC (2021), https://www.apec.org/docs/default -source/publications/2021/2/integrating -
smes-in-authorized -economic -operator -certification/221_sccp_integrating -smes -in-authorized -economic -
operator -certification -2.pdf?sfvrsn=8c0ca64c_1 . INF/MSME/W/47/Rev.1  
 
- 32 - 
 
  3.131.   RCEP ( Regional  Comprehensive Economic Partnership) program has some additional 
information and has set up a helpline for MSMEs to help them remove non -tariff barriers .49 
3.132.   All businesses had an opportunity to comment during the consultation on the development 
of the AEO p rogramme. MSMEs have been front of mind for the recent updates to our AEO 
programme and were consulted as the 'voice of the customer '. 
3.2.18   Philippines  
3.2.18.1   Background Info  
3.133.   The AEO program  in the Philippines was launched in 2019.  
3.134.   Requirements50:  
a. General:  
• Business ownership, structure, and organization.   
• Corporate or business profile and projecte d business activity.   
• End-to-end import or export process (goods, documentation and payment flow) and 
local distribution system, if any.  
• Entities involved in foreign supply and/or the local distribution chain.   
• List of goods imported or exported including  the nature, specific description in tariff 
terms, Customs value, preferential rates to be availed of, and volume (over time ).  
• Internal Customs compliance control.   
• Customs compliance history.   
• Business process continuity mechanism .  
• Other similar factors to be determined by the Bureau.  
b. Security:  
• Cargo handling and safekeeping.   
• Record -keeping and IT system.   
• Supply and trading partner.   
• Physical premises and access control.   
• Personnel complement.   
• Security training, threat awareness and outreach . 
• Other similar factors to be determined by the Commissioner.  
c. Other requirements:  
• In operation for at least one year prior to the date of application.   
• Obtained the necessary permits, licences, and/or concessions if regulated by ano ther 
Government agency.  
 
49 "Information for Exporters and SMEs ", New Zealand Foreign Affairs and Trade, 
https://www.mfat.govt.nz/en/trade/free -trade -agreements/f ree-trade -agreements -in-force/regional -
comprehensive -economic -partnership -rcep/information -for-exporters -and-smes/#bookmark4 . 
50 Compendium of Authorized Economic Operator Programmes, WCO (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 33 - 
 
  • None of the executive officers and directors directly engaged in Customs procedures 
and shareholders, as applicable, has been found criminally liable for violations of 
Customs laws and procedures.  
• Must have a dedicated office or un it and responsible officer whose main function is to 
ensure the applicant 's compliance with its duties and responsibilities under the 
AEO programme as an accredited member.  
3.135.   Accreditation Procedure:  
a. Pre-Screening Process:  
• AEO candidate fills in forms and su bmits documentary requirements to the Office of 
Deputy Commissioner.  
• The AEO Office assigns an Account Manager to review criteria and assist the candidate.  
• If approved, a Pre -screening Certificate is issued. If disapproved, the AEO Office assists 
until the  candidate is ready.  
b. Application  Process:  
• Applicant submits a complete application form at the AEO online portal together with 
the Pre -screening Certificate.  
• The AEO Office evaluates the document submission and conducts an on -site inspection 
of the facility.  
• If approved, the applicant is accredited as a Level 1 member. If disapproved, the 
applicant may re -apply after one year from the initial application.  
c. Revalidation  Process (for Level 1 to Level 2 transition):  
• Level 1 members undergo revalidation o f security measures and supply chain security 
practices (e.g., site visit).  
• If approved, the applicant is accredited as a Level 2 member. If disapproved, they are 
retained as a Level 1 member.  
3.136.   Benefits : 
a. Level 1 benefits:  
• Exemption from renewal of accredit ation.  
• Self-assessment.  
• Supplementary Goods Declaration.  
• Dedicated Help Desk.  
• Other benefits consistent with the RKC.  
b. Level 2 benefits:  
• Dedicated processing lane.  
• Advance clearance process.  
• Periodic lodgement.  
• One time exemption Certificate.  
• Expedited Customs clearance for exports.  
• Other benefits consistent with the RKC.  INF/MSME/W/47/Rev.1  
 
- 34 - 
 
  3.2.18.2   MSME -specific measures  
3.137.   The Philippines  AEO program is flexible and can provide a tailored model and benefits for 
MSMEs.  
3.138.   The Philippines  Customs proposed a number of ways to involve more MSMEs in the 
AEO program, including formulating flexible AEO rules that adjust to MSME models, partnering wi th 
OGAs to promote the AEO program among MSMEs, assigning Account Managers for MSME applicants 
to support the AEO application process, collaborating with organized sector groups for consultation 
and developing MSME -oriented AEO programs, and providing MSME s with guidelines to improve 
supply chain security and help them qualify for the AEO program .51 
3.2.19   Switzerland  
3.2.19.1   Background Info  
3.139.   The Swiss AEO program is aligned with the accreditation, criteria and process of the 
European Union (according to EU AEO Guidelines and WCO SAFE Framework of Standards). See 
section 3.2. 7 for more information on the EU AEO programme.  
3.140.   In contrast to the EU, there is only one type of AEO in Switzerland.  
3.2.19.2   MSME -specific measures  
3.141.   The AEO programme is open to all economic operators, including  MSMEs. The special 
provisions are identical to the provisions of the EU. See section 3.2. 7 for more information on the 
EU AEO programme.  
3.2.20   Thailand  
3.2.20.1   Background Info  
3.142.   The AEO program  in Thailand was  first introduced in 2 009 through a pilot program. Followed 
by the full implementation of the Thai AEO program for importers and exporters in 2011, the Thai 
AEO program was subsequentl y expanded to cover Customs brokers in 2013.  
3.143.   Accreditation52: 
a. General requirements:  
• Be a juristic person registered in Thailand with paid -up capital : THB 5 million for 
importer -exporter and THB 1 million for Customs broker . 
• Have a stable financial status over two years for im porter -exporter and three years for 
Customs broker . 
• Operate in import/export or Customs broker business over three years.  
• No serious violation of Customs Law and Customs related laws within three years.  
b. Application, Verification and Authorization process:  
• The applicant submits an application form with supporting documents and the 
completed self -assessment checklist.  
 
51 "Integrating SMEs in Authorized Economic Operator Certification: Improving SME Participation in 
APEC Secure Trade ", APEC (2021), https://www.apec.org/docs/default -source/publications/2021/2/integrating -
smes-in-authorized -economic -operator -certification/221_sccp_integrating -smes -in-authorized -economic -
operator -certification -2.pdf?sfvrsn=8c0ca64c_1 . 
52 Compendium of Authorized Economic Operator Programmes, WCO (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 35 - 
 
  • The submitted application form and the security profile will be examined if it meets 
AEO requirements or not.  
• Thai Customs conducts an on -site visit (validation visit) . 
• Thai Customs will notify the applicant of the approval or disapproval of the application 
within 90 days after the submission of the application form.  
3.144.   When Thai Customs conduc ts an on -site visit (validation visit) they will notify the applicant 
of the approval or disapproval of the application within 90 days after the submission of the 
application form.  
3.145.   Benefits:  
• Privileges on Customs procedures covering import, export and reexport.  
• Tax privileges to be granted on more speedy tax refund and compensation.   
• Privileges as  a standardized Authorized Economic Operator of placing a guarantee on 
transhipment  and transit.   
• Privileges on legal cases under the conditions specified by the Customs Department.   
• Exports will be recognized by foreign Customs administrations having 
Mutual  Recognition Agreement.   
• Other qualified privileges will be announced by the Director General of Customs.  
3.146.   Thailand defines MSMEs based on a combination of annual income and number of employees 
(see figure 1 below). If the number of employees fits one type of enterprise but the income fits 
another, whichever number is greater is used to determine the  enterprise  size category . 
Figure 1 : Definition of MSMEs in Thailand  
 
3.147.   As of December 2023, there was a total of 404 Thai AEOs consisting of 
207 Importers/Exporters and 197 Customs Brokers  (CB). Considering the type of enterprise using 
the annual revenue criteria, approximately 50 CB -type AEOs are small enterprises, 
representing  12%. 
3.2.20.2   MSME -specific measures  
3.148.   Thailand  uses the same set of security standards for all companies while acknowledging and 
taking into account  MSME s' economic limitations. It uses this approach as a guiding principle, 
including during the evaluation process, judging the overall adequacy of a com pany's security. 
INF/MSME/W/47/Rev.1  
 
- 36 - 
 
  However, Thailand did note that this approach requires a higher level of auditor training, 
professionalism, and management oversight to ensure an objective evaluation of the compliance 
requirements in the specific business context of  MSME s.53 
3.149.   Thailand has neither a MSME outreach program nor a budget specifically for MSMEs under 
the AEO program . 
3.2.21   Türkiye  
3.2.21.1   Background Info  
3.150.   The AEO program  in Türkiye  was launched in January 2013.  
3.151.   Accreditation requirements54: only one type of Certificate which includes both Customs 
simplifications and security and safety measures.  
a. General requirements:  
• An appropriate record of compliance with Customs rules and regulations.   
• A satisfactory system of managing commercial and transport records.   
• Proven financial solvency.  
• Approp riate security and safety standards.  
b. Accreditation process:  
• Application to the Regional Directorate where the main accounts related to the Customs 
arrangements are held.  
• Pre-evaluation by the Regional Directorate (examination of submitted documents and 
database query ). 
• Self-Assessment Form and written procedures are examined by Directorate General of 
Customs.  
• On-site audit based on the Self -Assessment Form.   
• Authorization or rejection of application.   
• Monitoring of AEOs after authorization to ensure highest compliance level is maintained.  
3.152.   Benefits:  
• Lower risk score for risk profiling within the risk management system.  
• Priority treatment if physical or paper -based controls are to be conducted.  
• Priority for border crossings.  
• Reduced data sets for entry and exit summary declarations.  
• Submit declaration with incomplete documentation.  
• Paperless declarations for imports and exports.  
• Guarantee facilitations (lump -sum or partial guarantee ). 
• Green line facilitation (no physical or paper -based controls ). 
• Approved exporter status, with Authorization on A.TR Movement Certificate and Invoice 
Declaration of EUR.1 and EUR.MED Certificates.  
 
53 Study of APEC Best Practices in Authorized Economic Operator (AEO) Programs , APEC (2016), 
https://www.apec.org/docs/default -source/publications/2016/ 5/study -of-apec-best-practices -in-authorized -
economic -operator -aeo-programs/apec -aeo-best-practices -final-report_may -2016.pdf . 
54 Compendium of Authorized Economic Operator Programmes, WCO (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 37 - 
 
  • Right of local clearance (for imports and exports ). 
• Right of authorized consignee.  
• Other facilitations currently recogni zed for authorized traders in Türkiye.  
• Use of the AEO logo . 
3.2.21.2   MSME -specific measures  
3.153.   SMEs who are also manufacturers may apply for the AEO Certificate.  Besides, there is a 
different kind of authorisation which smaller firms are encouraged to obtain instead of AEO.  This 
authorization is called "approved person status ". Common Facilitations for both authorisations are 
incomplete declaration and documents, use of partial guarantee, summary declaration with reduced 
data, right to benefit from lump sum gu arantee, right to issue and confirm ATR movement 
Certificate, right to issue Invoice Declaration or EUR.MED Invoice Declaration. The number of the 
companies holding this status is 5 ,396 in 2023.  
3.2.22   Uganda  
3.2.22.1   Background Info  
3.154.   The AEO program  in Uganda was launched on 5 September 2013.  
3.155.   Accreditation requirements55: 
• An applicant must be a party involve d in the International Trade Supply Chain as a 
player.  
• Have a compliance history o f at least three years.  
• Have capacity to connect to Uganda Revenue Authority systems e.g. , Automated 
System for Customs data (ASYCUDA) and E -tax connectivity.  
• The applicant must have implemented the AEO Compliance Program.  
• The Applicant must be financially  solvent . 
3.156.   Process:  
• Expression of interest by the applicant to join the program.  
• Preliminary consultation with applicant.  
• Issuance of self-assessment forms to the applicant.  
• Onsite inspection.  
• Vetting.  
• Preliminary inspection report.  
• Common risk mapping.  
• Inspection management Letter.  
• Authorisation . 
3.157.   Benefits:  
• Priority treatment in Customs areas.  
• Simplified Customs procedures.  
• Pre-arrival clearance.  
• Choice of place of Customs control.  
 
55 "Compendium  of Authorized Economic Operator Programmes ", WCO (2020) 
https://www.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium.pdf . INF/MSME/W/47/Rev.1  
 
- 38 - 
 
  • Self-management of Customs bonded warehouses.  
• Automatic renewal o f Customs licences.  
• Withholding tax exemption.  
• Priority to participate in all Customs initiatives . 
3.2.22.2   MSME -specific measures  
3.158.   Uganda Customs  plans to develop the simplified AEO program for particular sectors such as 
textiles and automobiles as a part of nation al economic objectives. The main objectives are to involve 
the MSMEs in the process to groom them to meet international standards and to reduce informal 
trade. These MSMEs are planned to be reached by MSME associations in Uganda by making 
presentations in their biannual meetings. There are also plans for instating a simplified AEO  program 
to improve the gender -based involvement in the AEO process. In Uganda, many small companies 
are headed by women and there is a well -established stigma against  women participat ing in formal 
programs. The objective of gender -based involvement is to re duce informality and capacity -building 
in the female population .56 
3.2.23   Ukraine  
3.2.23.1   Background Info  
3.159.   The AEO program  in Ukraine was adopted in 2012 and implemented in 2019.  
3.160.   There are two types of Authori zed Economic Operators: AEO simplifications and AEO security 
and safety. Businesses can apply for one type of the AEO status or both.  
3.161.   Accreditation : 
a. Requirements and criteria : 
• The entity must be an economic operator established in Ukraine, perform any role in 
the international supply chain (manufacturer, exporter, importer, Customs broker, 
carrier, forwarder, warehouse keeper) and meet the following criteria:  
o compliance with the requirements of Ukrainian Customs and taxation legislation, 
and absence of criminal offences;  
o efficient system of accounting, commercial and transport documentation;  
o proven financial solvency;  
o practical standards  of competence or professional qualification;  and 
o compliance with security and safety standards.  
b. Procedure : 
• The entity completes and submits the application and self -assessment questionnaire to 
Customs.  
• Customs verifies/evaluates the information submitted by the applicant, including by 
conducting on -site visits.  
• Customs grants/rejects the AEO status.  
• Customs monitors the AEO to ensure compliance.  
• Customs suspends/revokes the AEO status (if needed).  
 
56 Authorized Economic Operator Programs in Islamic Countries, COMCEC (2018), 
https://sbb.gov.tr/wp -content/uploads/2019/06 /Improving -Authorized -Economic -Operators -Programs -in-the-
OIC-Member -States.pdf . INF/MSME/W/47/Rev.1  
 
- 39 - 
 
  3.162.   Benefits : 
• Simplified declaration and priority of Customs formalities.  
• General financial guarantee.  
• Release of goods at the location of the entity.  
• Reduction of risks in the Customs clearance system.  
• Separate traffic lane (if available) at the border.  
• Access to visibility and transparency of goods supply chain data.  
• The right to self -impose seals on vehicles.  
• Use of the AEO logo.  
3.163.   MSMEs represent 50 % of entities accredited as AEOs in Ukraine.  
3.2.23.2   MSME -specific measures  
3.164.   The AEO program is open to all economic operators , including MSMEs. There are no specific 
measures for MSMEs.  
3.165.   All business entities, including MSMEs, were consulted during the development of the AEO 
program.  
3.2.24   United Kingdom  
3.2.24.1   Background Info  
3.166.   The UK's AEO program  was launched in September 2012.  
3.167.   Accreditation procedure and criteria:  
a. Types of Status: there are two types of AEO status:  
• Authori zed Economic Operator Customs Simplification (AEOC) . 
• Authori zed Economic Operator Security and Safety (AEOS) . 
b. One can apply for either Customs simplification or security and safety, or both.  
c. Who can apply:  
• The business must be a legal entity established in Great Britain or Northern Ir eland.  
• Actively involved in Customs operations and international trade.  
• Have an Economic Operator Registration and Identification (EORI) number.  
• Part of the international supply chain, from manufacturing to delivery of goods using 
import and export procedu res. 
• Businesses new to Customs can apply if they can show the processes and procedures 
they have in place.  
d. Checks by His Majesty 's Revenue & Customs (HMRC):  
• Tax and Customs compliance: Compliance with tax and Customs rules over the last 
three years.  
• Custo ms record keeping: Efficient system for managing commercial and transport 
records.  INF/MSME/W/47/Rev.1  
 
- 40 - 
 
  • Proven financial solvency: Financial records of the business covering the last 
three years.  
• Practical standards of competence or professional qualifications:  Show practical 
competence in Customs matters for the previous three years.  
• Security and safety: Procedures to protect the business and supply chain from risks.  
3.168.   Benefits to an AEO:  
a. AEOC benefits:  
• Faster application process for Customs simplifications and authorisations.  
• Lower risk score which may reduce the number of checks Customs carry out on 
documents and goods.  
• Guarantee waiver up to the level of the deferment account.  
• For Northern Ireland trad ers: Priority treatment for Customs controls, reduction, or 
waiver of comprehensive guarantees, 70 % reduction in a business 's deferment account 
guarantee, and more.  
b. AEOS benefits:  
• Reduced declaration requirements for entry and exit summary declarations.  
• Reciprocal arrangements and mutual recognition with economies  like China,  
the European  Union, Japan, New Zealand, Singapore , Switzerland and the United  States  
of America . 
• Benefits can include faster clearance at the frontier, fewer interventions, and lower risk 
scores.  
3.2.24.2   MSME -specific measures  
3.169.   Flexibility  in AEO rules: small or medium -sized business es do not need complex systems, 
but they must be appropriate to the size, nature and complexity of the business .57 
3.170.   In the U nited Kingdom , a private company developed, in partnership with UK Customs, a 
learning programme for potential AEOs/company auditors, to ensure that a linked set of resources 
and processes are in place for the safe handling and delivery of goods, and related services within 
the supply cha in.58 
3.2.25   United States of America  
3.2.25.1   Background Info  
3.171.   The United States'  Authorized Economic Operator  (AEO) program,  known as the 
Customs  Trade Partnership Against Terrorism (CTPAT), was implemented  in November 2001  
following the attacks of 11 September . CTPAT is a critical component of U.S. Customs and Border 
Protection's (CBP) layered cargo enforcement strategy to ensure the security of international 
commerce coming into the U.S.  CTPAT is a voluntary public -private sector partnership program 
which recognizes that CBP can provide the highest level of cargo security only through close 
cooperation with the principle stakehold ers of the international supply chain such as importers, 
carriers, consolidators, licensed Customs brokers, and manufacturers. The Security and 
Accountability for Every Port Act of 2006 provided a statutory framework for the CTPAT program.   
 
57 Find out what types of Authori zed Economic Operator status you can apply for , United Kingdom 
Government (2012, updated 2023), https://www.gov.uk/guidance/authorised -economic -operator -
certification#types -of-status . 
58 "Second WCO Global AEO Conference under the spotlight ", WCO (2014), 
https://www.worldcommercereview.com/publications/article_pdf/859 . INF/MSME/W/47/Rev.1  
 
- 41 - 
 
  3.172.   Accreditation ( criteria)59: 
• Certify security profile within 90 days once all information has been provided  to CBP. 
• Conduct on -site validation – within one year of certification.  
• Requires that Partners update their security profile and risk assessments on an annual 
basis.  
• Conduct revalidations within four years of the initial validation or sooner based on risk 
as assessed by CBP.  
3.173.   Benefits:  
• Reduced examination rates.  
• Eligibility to participate in other U.S. Government programs, e.g., the Free and Secure 
Trade (FAST ). 
• Stratified exam benefit for importer partners.  
• Front of the line processing.  
• Business resumption  priority following a natural disaster or terrorist attack . 
• Access to a Su pply Chain Security Specialist (SCSS ). 
• Benefits through mutual recognition .  
3.174.   CBP estimates that 70% of its members are SMEs (less than 250 employees) and at least 
5% of those could be considered MSMEs.  
3.2.25.2    MSME -specific measures  
3.175.   The CTPAT program requires that companies meet its security requirements or minimum  
security criteria. However , these criteria are written in a way that allows for flexibility in 
implementation based on business type and company size. Also, the criteria is supported by 
resources, implementation guidance, and help text within the CTPAT Portal, recognizing the range  
of the program 's audience in membership. CTPAT personnel also conduct outreach to MSMEs to  
explain the eligibility criteria and application process - to include outreach and training in Spanish to 
its thousands of members in Mexico and on the U.S. Southwe st border .60 
3.176.   MSMEs were part of the working group put together by CBP to develop the criteria in 2001 
and to update it in 2015.  
3.2.26   Uruguay  
3.2.26.1   Background Info  
3.177.   Uruguay's Programa Operador Económico Calificado  (OEC), or Qualified Economic Operator 
Program, was esta blished in 2014  focusing on a high level of security within the supply chain. 
Currently there are MRAs in place with MERCOSUR , the Organization of American States (OAS), 
China, the  Republic  of Korea  and the United States  of America . Negotiations are also under way for 
an MRA with the Pacific Alliance.  
 
59 "Compendium  of Authorized Eco nomic Operator Programmes ", WCO (2020) aeo-compendium.pdf 
(aladi.org) . 
60 Study of APEC Best Practices in  Authorized Economic Operator (AEO) Programs , APEC (2016), 
https://www.apec.org/docs/default -source/publications/2016/5/study -of-apec-best-practices -in-authorized -
economic -operator -aeo-programs/apec -aeo-best-practices -final-report_may -2016.pdf . INF/MSME/W/47/Rev.1  
 
- 42 - 
 
  3.178.   Accreditation procedure and criteria61: 
• Legal requirements . 
• Financial solvency . 
• Satisfactory Customs and tax compliance history . 
• Customs and tax compliance history . 
• Security Managemen t System . 
3.179.   Benefits : 
• Assistance for OEC operators . 
• Electronic  file processing priority . 
• Simplified border crossing procedures . 
• Consolidated freight transport . 
• Reduced red and orange lane review . 
• Inspection priority . 
3.2.26.2   MSME -specific measures  
3.180.   Designed for all operators of any size, the program is voluntary and provides a unique 
certificate for security and facilitation valid for three  years  that is renewable thereafter. Altogether, 
65 operators have been granted Certificates with 22  more applications in process. Operators include 
exporter s, importers, port terminals, cargo terminals, carriers, free zone operators, free zone users, 
freight agents, and Customs brokers . 
3.2.27   Zambia  
3.2.27.1   Background Info  
3.181.   The Customs Accredited Client Program (CACP) was launched in 2008 as a compliance 
variant of the Authorized Economic Operator with over 34 companies based on their higher value 
for duty purposes and revenue as well as cartage across borders. The target groups were importers 
and exporters only.  
3.182.   Follow ing several reviews including the WCO diagnostic study of 2019 (AEO Implementation) 
which recommended the enactment of enhanced legislation and enlargement of the scope to cover 
all economic players in the trade supply chain and to consider the full adopti on of the WCO SAFE 
Framework of Standards in the development of AEO, Zambia finally managed to launch the AEO pilot 
programme on 25 October 2023 with four companies. With regards scope expansion, Customs 
brokers and bonded warehouses are next for considera tion for AEO implementation.  
3.183.   Zambia is actively participating in regional AEO programme designing of procedures and 
policies under the SADC and COMESA. Participating also in a National Technical Working Group 
(NTWG) developing a Mutual Recognition Framewor k (MRF) pillars and Standard Operating 
Procedures (SOPs) under COMESA – AGRA MRA PROJECT – ZAMBIA whose objective is the promotion 
of intra -regional trade in grain  – maize, sorghum, rice, soya beans, groundnuts and beans . 
 
61 "Programa Operador Económico Ca lificado  Dirección Nacional de Aduanas Uruguay ", Ministerio de 
Economia y  Finanzas de Uruguay (2023)  
https://www.wto.org/english/tratop_e/msmes_e/uruguay_presentacion_o ec.pdf . INF/MSME/W/47/Rev.1  
 
- 43 - 
 
  3.184.   Accreditation : 
a. There are two types of accreditation, CACP and AEO and one can apply for either or 
both: 
• The business must be a legal entity established in Zambia.  
• Actively involved in Customs operations and international trade.  
• Part of the international supply chain, from manufacturi ng to delivery of goods using 
import and export procedures.  
• Businesses new to Customs can apply if they can show the processes and procedures 
they have in place.  
• Have complied with tax and Customs rules over the last three years.  
• Maintain Customs record k eeping  efficient system for managing commercial and 
transport records.  
• Demonstrate proven financial solvency through financial  records of the business 
covering the last three years.  
• Follow practical standards of competence or professional qualifications: show practical 
competence in Customs matters for the previous three years.  
• Security and safety: have procedures to protect the business and supply chain from 
risks.  
3.185.   Benefits  to AEO and CACP clients:  
• Zero border intervention (100% blue lane) . 
• 'Special Releas e' of consignment before payment . 
• Privileged to pay after three days after release of goods . 
• Destination Inspection privileges in case of random intervention at the border or inland 
enforcement units . 
• Expedited clearance at the border even in time of downtime . 
• Special identification logo on ASYCUDA World (Customs system) . 
• Preferential treatment in times of disputes with Customs . 
• Minimum intervention by the inland enforcement units . 
• Allocation of Case Manager or Relationship Manager . 
• Eligibility for sel f-audit or self -assessment leading to no penalties for own corrective 
disclosures . 
• ZRA facilitated client education and coaching with the objective of enhancing compliance 
management . 
3.186.   Benefits to AEO members only:  
• Extended mutual benefits from partner Government agencies . 
• Extended benefits from other Customs administrations & through regional mutual 
recognition agreements – work in progress (currently in discussion with South Africa 
Revenue Service  (SARS )). 
• Expected fair treatment and recognition from other  ZRA Divisions/Sections – work in 
progress . 
• Self-Release Order printing on ASYCUDA World ( Customs system) . 
• Access to own declarations through Application Programming Interface (API) on the ZRA 
website (work in progress) . INF/MSME/W/47/Rev.1  
 
- 44 - 
 
  3.2.27.2   MSME -specific measures  
3.187.   The Zambian AEO program allows for the integration of MSMEs into global value chains by 
simplifying Customs administration procedures and the application process to avoid discrimination 
against MSMEs. The AEO program is all encompassing, and information is disseminate d to all trade 
players via radio programs, social media as well as workshops conducted through sensitization in 
each province of the economy . The benefits offered to AEO members apply to all applicants which 
include ZRA facilitated client coaching and educ ation which directly speaks to the inclusion of MSMEs 
in the AEO program.  Customs has also planned intentional sensitization engagements with the 
Ministry of Small and Medium Enterprises to tap into the policy makers and the MSMEs themselves.  
3.188.   Consultation from different trade players was conducted during the development of the AEO 
program.  
3.3  Key Lessons Learned  
3.189.   Key lessons or best practices that the programs would like to highlight . 
4   INITIATIVES BY REGIONAL ORGANIZATIONS  
4.1  Asia-Pacific Economic Cooperation (APEC)  
4.1.  APEC has been actively working on integrating SMEs into the AEO programs to enhance their 
participation in global trade.  
• The APEC Sub -Committee on Customs Procedures launched a two -year project titled 
"Integrating SMEs in Authorized Economic Operator Certific ation" to examine 
AEO programs within APEC, focusing on AEO and AEO MRA benefits for businesses, 
especially SMEs.  
o The project aimed to identify entry barriers to SMEs ' AEO certification, find ways 
of enhancing SME partic ipation as AEOs, take advantage of the Mutual 
Recognition Agreements (MRAs) network in APEC, and promote benefits for a 
faster release of goods to SMEs.  
• APEC's recognition of SMEs' role: 
o SMEs play a crucial role in generating economic activity and employme nt in both 
developing and developed economies.  
o SMEs represent 99 % of all businesses, generate about 60 % of employment, and 
account for between 50 % and 60 % of value added in the OECD area.  
o SMEs make up over 97 % of all APEC businesses, employ over half of th e 
workforce of APEC economies, and contribute between 20 % and 50 % of GDP in 
the majority of APEC economies.  
4.2.  Specific APEC Initiatives:  
• General APEC Initiative: APEC's Small and Medium Enterprises Working Group Strategic 
Plan 2017 -2020 provides a roadmap to  address critical issues related to the growth of 
SMEs and micro  enterprises in the APEC region. The strategic plan emphasizes areas 
such as entrepreneurship, innovation, financing, and market access to support the 
development and growth of MSMEs.  
o APEC als o recognizes the importance of information and knowledge sharing, skills 
training, especially in e -commerce, to empower MSMEs and help them navigate 
the challenges of global trade.  
• Sub Committee on Customs Procedures Initiative: The Boracay Action Agenda to 
Globalize MSMEs  focuses on priority areas of cooperation such as trade facilitation, trade 
finance, e -commerce, and institutional support. The goal is to expand the scope of 
AEO programs to include SMEs, enabling them to contribute more effectively to supply 
chain security, integrity, and resilience.  INF/MSME/W/47/Rev.1  
 
- 45 - 
 
  o Recognizing the significant contribution of MSMEs to APEC economies, 
Trade  Ministers adopted the Boracay Action Agenda to ensure that MSMEs can 
participate more actively in regional and global markets.  
o A Final Review of the Boracay Action Agenda Study Report  provides insights into 
the progress and impact of the agenda on MSMEs in the APEC region.  
5  OTHER INITIATIVES  
5.1  Global Alliance for Trade Facilitation  
5.1.  The Global Alliance for Trade Facilitation  is a public -private partnership that supports 
governments in developing and least -developed countries in implementing the World  Trade 
Organization 's Trade Facilitation Agreement (TFA).  
5.2.  The Alliance's  projects aim to streamline and make trade processes more predictable through 
digitisation and other best practices. This helps businesses trade more easily and governments 
moderni ze trade procedures while ensuring border security.  
5.3.  The Alliance  is led by the Center for International Private Enterprise, the International Chamber 
of Commerce, and the World Economic Forum, in cooperation with Gesellschaft für Internationale 
Zusammenarbeit (GIZ) . It is funded by several governments, including Australia, Canada, Denmark, 
Germany and the United  States  of America . 
5.4.  Alliance's approach to support MSMEs62: 
• The Alliance has recognized the need to address the specific trade facilitation challenges 
faced by MSMEs and has developed a MSME mainstreaming approach.  
• After reviewing best practices from other trade development organizations, the Alliance 
developed MSME Mainstreaming Guidelines. These guidelines consist of five  steps:  
o identify rel evant MSMEs for project development ; 
o understand the specific trade facilitation challenges of MSMEs ; 
o analyse and define the project 's impact on MSMEs ; 
o design MSME -specific project activities ; and 
o measure and monitor project results for MSMEs.  
• The Alliance has engaged MSMEs through local chambers of commerce, facilitating their 
participation in public -private dialogues. This has helped raise the profile of MSMEs and 
fostered better relationships between MSME representatives and Customs agencies.  
• Project activities, such as training sessions, have been designed to ensure MSMEs 
benefit from them. The Alliance also includes MSME characteristics in measurement 
plans.  
5.5.  The Global  Alliance for Trade Facilitation has also taken specific measures to suppo rt MSMEs in 
the context of AEO programs and other trade facilitation initiatives63: 
1. MSME Representation in Public -Private  Dialogues (PPDs):  
• The Alliance ensures the representation of MSMEs in public -private dialogues (PPDs). 
These dialogues provide a platf orm for the public and private sector stakeholders to 
co-create or participate in projects on an equal footing.  
 
62 "Small businesses, great opportunitie s", Global Alliance for Trade Facilitation (2021),  
https://www.tradefacilitation.org/content/uploads/2022/02/alliance -small -businesses -great -opportunities -
paper.pdf . 
63 "Small businesses, great opportunities ", Global Alliance for Trade Facilitation (2021),  
https://www.trade facilitation.org/content/uploads/2022/02/alliance -small -businesses -great -opportunities -
paper.pdf . INF/MSME/W/47/Rev.1  
 
- 46 - 
 
  • The Alliance has leveraged its relationship with the International Chamber of Commerce 
(ICC) and its national committees in each economy  to ensure not only private sector 
but also small business representation in project design and implementation.  
2. AEO Proj ect in Latin America and the Caribbean:  
• The Alliance recognized that the majority of AEO -certified companies are large 
businesses. To address this, the project includes specific dissemination activities to 
reach MSMEs in the region.  
• The aim is to explain t he benefits, costs, and requirements to obtain AEO certification, 
as well as to provide resources and tools.  
• In December 2019, the Alliance held a workshop with 259 MSMEs, women -owned 
businesses, and AEO Customs officials from 11 different economies . This workshop was 
designed to foster dialogue and share information about AEO certification.  
3. Project in Senegal:  
• The Alliance team in Senegal designed an MSME -sensitive project that focuses on 
automating and digitizing the import process for agro -industrial pro ducts, a sector with 
a high proportion of MSMEs.  
• Once the new digital tools are operational, the project will train MSMEs to use the new 
automated procedures in a manner specifically tailored to their needs.  
5.6.  These initiatives highlight the Alliance's commitment to ensuring that MSMEs are equipped with 
the knowledge and tools they need to benefit from trade facilitation reforms, including 
AEO programs.  
 
__________  