   
  
INF/MSME/W/47  
 
25 October  2023 
(23-7199) Page: 1/37 
  Original: English  
 
 
INFORMAL WORKING GROUP ON MSMES  
A COMPENDIUM OF SPECIAL PROVISIONS FOR MSMES IN  
AUTHORIZED ECONOMIC OPERATOR (AEO ) PROGRAMS  
First draft  
The following compilation  of Authorized Economic Operator (AEO) programs that include a 
MSME  dimension , dated 25 October  2023,  has been prepared by the WTO Secretariat at the request 
of the Informal Working Group on MSMEs to promote experience sharing. 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), for review by  MSME Group  members.  
 
_______________  
 
 
  INF/MSME/W/47  
 
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Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  3 
1.1   What are 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   Authorized Economic Operators (AEO) 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   European Union  ................................ ................................ ................................ ..... 12 
3.2.6   Fiji ................................ ................................ ................................ .......................  14 
3.2.7   France  ................................ ................................ ................................ .................  15 
3.2.8   Hong Kong, China  ................................ ................................ ................................ .. 15 
3.2.9   India ................................ ................................ ................................ ....................  17 
3.2.10    Jamaica  ................................ ................................ ................................ ..............  19 
3.2.11    Japan  ................................ ................................ ................................ .................  20 
3.2.12    Jordan  ................................ ................................ ................................ ................  21 
3.2.13    Korea, Republic of  ................................ ................................ ................................  23 
3.2.14    New Zealand  ................................ ................................ ................................ ....... 25 
3.2.15    Philippines  ................................ ................................ ................................ ..........  26 
3.2.16    Thailand  ................................ ................................ ................................ .............  28 
3.2.17    Türkiye  ................................ ................................ ................................ ...............  29 
3.2.18    Uganda ................................ ................................ ................................ ...............  31 
3.2.19    United Kingdom  ................................ ................................ ................................ ... 32 
3.2.20    United States of America  ................................ ................................ .......................  33 
3.2.21    Uruguay  ................................ ................................ ................................ .............  34 
3.3   Key Lessons Learned  ................................ ................................ ................................ . 35 
4   INITIATIVES BY REGIONAL ORGANIZATIONS  ................................ ...........................  35 
4.1   Asia-Pacific Economic Cooperation (APEC)  ................................ ................................ .... 35 
5   OTHER INITIATIVES ................................ ................................ ................................ .. 36 
5.1   Global Alliance for Trade Facilitation  ................................ ................................ ............  36 
 
  INF/MSME/W/47  
 
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  1  INTRODUCTION  
1.1  What are AEO programs ? 
1.1.  As part of the 2005 SAFE Framework, the 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 requirements, provided that these operators comply with specific requirement s, such as a 
demonstrated compliance record, a satisfactory system for the management of commercial records, 
financial viability, and security concerning cargo, transport conveyances, premises, 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 associa ted 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 rela ted 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 combination of the specified criteria.  
1.3.  The elig ibility criteria for the AEO status are defined in the customs regulations of a country. 
According to the World Customs Organization (WCO), the benefits provided under AEO programs 
must be "meaningful, measurable, and reportable." This ensures that AEOs en joy 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 design thei r 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 country could potentially receive the same 
benefits in anothe r country if both countries 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 a n 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  
 
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  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: Efficient 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 cr edibility. 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.  
• Enhanced Oversight: MSMEs with AEO status benefit from a more transparent and 
controlled transportation process, ens uring 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 Resources Pra ctices: 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 asset s 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 compiles  the AEO programs of 2 1 WTO Members which have MSME -specific 
provisions. These Members include Argentina; Australia; Brazil; Canada; European  Union; Fiji; 
France; Hong  Kong, China; India; Jamaica; Japan; Jordan; Korea , Republic of ; New Zealand; 
Philippines; Thailand; Türkiye ; Uganda; United Kingdom; the United States of America; and 
Uruguay . 
2.2.  This overview provides insights into the MSME -specific provisions of the AEO programs covered 
in the compendium. The focus is on ensuring that busin esses, especially MSMEs, can benefit from 
the AEO programs.  
2.3.  Main Features/Commonalities:  
• Flexibility: Many countries offer tailored criteria for MSMEs, recognizing their unique 
challenges.  
 
3 Sources:  "Integrating SMEs in Authorized Economic  Operator Ce rtification: Improving SME  
Participation in APEC Secure Trade " (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 ; "The Authorized Economic  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.pd f. 
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  
 
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  • Outreach: Active outreach and capacity -building initiatives to promote AEO programs 
among MSMEs.  
• Tiered Systems: Some countries offer different levels of certification based on 
compliance and operational capabilities.  
• Financial Support: Countries 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.  
• Compliance: 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 t o 
all traders , including MSMEs.  
• Continuous Feedback: Regular feedback mechanisms can help fine -tune the program to 
better suit the needs of MSMEs.  
• Collaboration: Collaborative efforts between customs administrations, businesses, and 
other government agenci es 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, emphasi zes a holistic approach to secure 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 ele ments:  
• Harmonizing advance electronic 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, focusin g on standards and technical specifications for 
implementation between Customs administrations.  
• Customs -to-Business: Establishing partnerships with businesses, emphasizing the role 
of Authorized Economic Operators (AEOs), and creating an international syst em for 
identifying private businesses that offer high security guarantees concerning their role 
in the supply chain.  INF/MSME/W/47  
 
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  • Customs -to-Other Government Agencies: Strengthening cooperation between Customs 
and other government agencies, considering various regulato ry and security 
perspectives.  
3.1.1   Authorized Economic Operators (AEO) 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 qu ality accreditation of 
Customs routines that use IT to facilitate 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 comp rehensive 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 countries is also promoted  
so as to further standardize procedure s by coordinating efforts across countries .5 
3.5.  The WCO SAFE Framework establ ishes 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 
operat ions, reduced inspections, and enhanced global 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, the transportation, the security rules, among other 
things (secure supply chain ).  
• Availability of the computerized management system – inventory and control. The 
controls are risk -based.   
• Availability of the  image control system that facilitates a fluent and 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.  
 
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), pg. 12: 
https://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/research/research -paper -
series/aeo_compendium1.pdf?la=en . 
7 Compendium of Authorized Econom ic 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  
 
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  3.9.  Benefits : 
• Cost and time  savings . Reduction of operational costs for the operators.   
• Anticipation of the consignments sent to other countries.   
• 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 countries of destination.   
• Secure and smooth transportation of goods.   
• Keeps the integrity of the shipment.  
[What percentage of AEOs do MSMEs represent? – no information ] 
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 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
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 1st July 2016.  
3.12.  The Australian  Trusted Trader Program  currently has over 230 accredited business es in a 
variety of industries. Around 60% are small and medium enterprises .9 
3.13.  Accreditation  (components, process)10:  
• The entity completes an expression of interest to determine whether it meets key 
eligibility criteria of an Australian Business Number and two years trading history.  
• The entity completes a self -assessment questionnaire 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 a review of the entity 's documentary application , and; 
o physical validation of an enti ty's supply chain security and trade compliance 
practices.  
• If the application is approved, the entity will enter into an Australian Trusted Trader  
Agreement with the Australian Border Force. This outlines the conditions of Australian 
Trusted Trader  accred itation,  and the trade facilitation benefits available to the entity.  
 
8 Compendium of Authorized Economic Operator (AEO) Programmes, W CO (2010), pg. 20: 
https://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/research/research -paper -
series/aeo_compendium1.pdf?la=en . 
9 "Australia’s Authorized Economic Operator (AEO) Program  Australian Trusted  Trader ", Presentation 
(2018), https://www.wto.org/english/tratop _e/tradfa_e/comm_e/meet_oct18_aus_e.pdf . 
10 Compendium  of Authorized Economic Operator Programmes, WCO (2020), 
https://www.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium.pdf . INF/MSME/W/47  
 
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  • The Australian Border Force works with the accredited Trusted Trader to manage 
ongoing compliance, including through periodic revalidation.  
3.14.  Benefits : 
a. Current Australian Trusted Trader  benefits include:  
• Differentiated examinations . 
• An account manager . 
• Priority trade services . 
• Use of Australian Trusted Trader  logo. 
• Mutual Recognition Arrangements  (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 Consolidated Cargo Clearance . 
3.2.2.2   MSME -specific measures  
3.15.  Australia engaged  MSMEs during the 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 beginni ng, 
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 descr ibe how those standards are being 
met in their individual circumstances. This approach was explicitly designed to foster MSME 
participation in the security chain .11 
3.16.  Australia  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 used fo r 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 .12 
3.2.3   Brazil  
3.2.3.1   Backgroun d Info  
3.17.  The Brazilian AEO program  was launched in December 2014.  
3.18.  For certification in the Brazilian AEO Programme compliance shall be verified with the 
following, according to the chosen system: 1 - AEO-Security; 2 -AEO-Compliance tier 1 or tier 2; 
3-AEO-Full. General Requirement s13: 
• An appropriate record of compliance .  
 
11 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 . 
12 "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 . 
13 Compendium  of Authorized Economic Operator Programmes, WCO (2020), 
https://www.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium. pdf. INF/MSME/W/47  
 
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  • Computer -based system to manage commercial, tax, financial and operational 
records.  
• Financial solvency .  
• Commercial partners polic y.  
• Human Resources policy.   
• Appropriate Security Standards (for AEO -Security ).  
• Appropriate Compliance Standards ( for AEO -Compliance tier 1 and tier 2).  
3.19.  Accreditation :  
• Fill in an application and a self -assessment questionnaire and  send them to Customs.   
• For AEO -Compliance tier 2 and AEO -Full, fill in a Supplemental Validation Report that 
includes risk maps of operators work process.   
• 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).  
3.20.  The conditions for acceptance and rejection of the applicant as well as suspension and 
revocation of the AEO certification are laid down in the legislat ion. 
3.21.  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, Tier or System.   
• Mutual Recognition Agreeme nt Benefits (MRA ).  
• Active participation in updating laws and customs procedures related to AEO 
(Consultative Group ).  
• Requirement waiver when asking for special customs regimes . 
• Customs and AEO certified operator joint workshops and trainings.  
b. Benefits  to AEO -Security and AEO -Full:  
• Real time channel definition.   
• Lower rate of document and physical controls in EXPORT operations.   
• Priority on document and physical controls.   
• AEO Carriers can realize simplified export procedure to MSME . 
• Guarantee waiver for transit.  
c. Benefits  to AEO -Compliance tier 1 and AEO -Full:  
• Priority on AEO Classification of Goods Decision (maximum of40 days ).  
• Guarantee waiver for temporary admission . 
• Permission to rectify import declarations in smaller lots.  INF/MSME/W/47  
 
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  d. Benef its to AEO -Compliance tier 2 and AEO -Full:  
o real time channel definition ; 
o lower rate of document and physical controls in IMPORT operations ; 
o priority on document and physical controls ; 
o permission to submit import declaration before the goods arrival (only for goods 
imported by sea); and  
o green channel for Temporary Admission (document and physical controls waiver).  
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.3.2   MSME -specif ic measures  
3.22.  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 country, with 
more than 6,000 people participating thus far. The MSMEs that  have already been certified are 
mostly cargo agents and transportation companies, with most of them achieving AEO -Security 
certification.   
3.23.  Making the certification process simple and transparent, ensuring all information is available, 
and promoting the ne w 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 .14  
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.4   Canada  
3.2.4.1   Background Info  
3.24.  Canada 's AEO program , called the Partners in Protection (PIP) program was launched first in 
1995 an d revised in 2002 and 2008.  
3.25.  Accreditation  (components, process)15: 
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 meet 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; secu rity training and 
awareness; and business partner security.  
• The Security Profile is reviewed, concerns identified, and a thorough risk assessment 
performed.  
• 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.  
 
14 "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 . 
15 Compendium  of Authorized Economic Operator Programmes, WCO, (2020), 
https://www.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium.pdf . INF/MSME/W/47  
 
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  b. PIP members are revalidated at least once every four  years, in which an updated 
security profile, risk assessment, and site validation are performed.  
3.26.  Benefits :  
• Lower rate of physical 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 commu nications and stakeholder 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 
Resump tion Plan in the event of trade flow disruptions . 
3.27.  As of July 2019, 1 ,512 MSMEs were accredited as AEOs in Canada out of 2 ,088 total 
AEO importers and exporters  (72.4 per cent ) according to IDB studies16 17. Small and Medium 
Enterprises (i.e. , 500 employees  or less) represented 88% of the total number of applicants in April 
2010.18 
3.2.4.2   MSME -specific measures  
3.28.  In Canada , PIP activities have largely contributed to increased awareness and hence better 
inclusion of MSMEs into the AEO program. Moreover, ensuring the a vailability of a sustainable and 
skilled team makes the process easier and more efficient .19 
3.29.  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 markets. 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 . 
3.30.  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 Wor ld Customs Organization 
(WCO) also has a similar model checklist available for Customs administrations to review their policy 
and programmes from the perspective of SMEs .20 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
 
16 "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 . 
17 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 . 
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 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. 
20 "Making the WTO Trade Facilitation Agreement Work for SMEs ", ITC, (2016), 
https://www.unescap.org/sites/default/files/MakingWTO TFAWorkforSMEs.pdf . INF/MSME/W/47  
 
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  3.2.5   European Union  
3.2.5.1   Background Info  
3.31.  The European Union AEO program  was adopted in 2008 and implemented in 2013. In th e 
European region, the EU AEO programme is the uniform programme for all 27 EU Member States 
and serves as a general approach for such countries as Norway, Switzerland and Croatia.  
3.32.  Accreditation (components, process)21: 
a. Two types of authorisations: The AEO C (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. 
The AEOC and AEOS authorisations may be hel d at the same time resulting in one 
combined authorisation.  
b. Conditions  and criteria:  
• Economic Operator . 
• Established in the EU Customs Territory . 
• Compliance with customs legislation and taxation rules and absence of criminal offences 
related to the economi c activity . 
• Appropriate Record Keeping . 
• Proven Financial Solvency . 
• Practical Standards of Competence or Professional Qualifications . 
• Security & Safety . 
3.33.  Accreditation :  
• In general, application in the Member State where the main accounts related to the 
Customs arrangements are held and at least part of AEO activities are conducted.   
• Self-assessment done by the applicant.   
• Thorough communication and consultation process bet ween all MS via the 
AEO database.   
• Detailed security profile.  
• Compliance and solvency requirements.   
• Risk assessment; security check (WCO criteria).  
3.34.  Benefits :  
• Easier admittance to customs simplifications . 
• Fewer physical and document -based controls : 
o relate d to security & safety ; 
o related to other customs legislation . 
• Prior notification in case of selection for customs control : 
o related to security & safety ; 
o related to other customs legislation . 
 
21 Compendium  of Authorized Economic Operator Programmes, WCO, (2020), 
https://www.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium.pdf . INF/MSME/W/47  
 
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  • Prior notification in case of selection for physical control (rel ated to safety and security). 
When necessary,  a physical control may be performed even though no prior notification 
of inspection was given . 
• Priority treatment if selected for control . 
• Possibility to request a specific place for customs controls . 
• Mutual Re cognition with third countries . 
• 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 . 
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.5.2   MSME -specific provisions  
3.35.  Special  provisions22: 
• The AEO program is open to all economic operators, including MSMEs. While the 
conditions and criteria for an AEO authorization are the same for all, Member State 
administrations can grant flexi bilities to MSMEs, especially during the examination of 
the criteria for the authorization.  
• 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 application guidelines provide further guidance on how flexibility should be 
applied in practice.  
• SMEs can demonstrate compliance with requirements through measures considered 
appropriate by the Certifying Authority. For instance, micro and small businesse s 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. In such cases, the 
applicant's formal statement could  be considered sufficient.  
• For security awareness training, mechanisms for the education and training of personnel 
should be appropriate to the size of the enterprise. For micro MSMEs, documented oral 
training, and a recall of basic security and safety req uirements may be accepted by 
customs authorities.  
[Were MSMEs consulted during the development of the AEO program? – no information ] 
 
22 Authorized  Economic Operators  Guideli nes, European Commission, (2016),  https://taxation -
customs.ec.europa.eu/system/files/2017 -03/aeo_guidelines_en.pdf . INF/MSME/W/47  
 
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  3.2.6   Fiji 
3.2.6.1   Background Info  
3.36.  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.  
3.37.  Gold Card Service provides priority and privileged services to highly compliant customers. 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 clearance certificates, issu ance 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.  
3.38.  Being a member of the Authorized Economic Operators (AEO) 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.  
3.39.  Accreditation : 
• Expression of Interest from companies.  
• Companies that require Tax & Customs service daily.  
• Topmost revenue contributors to Customs & Tax prioritised.  
• Excellent compliance history in both Customs & Tax responsibilities identified.  
3.40.  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.  
• 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 2000 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 a t 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.  
[What percentage of AEOs do MSMEs represent? – no information ] INF/MSME/W/47  
 
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  3.2.6.2   MSME -specific provisions  
3.41.  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 se tup a MSME Support Centre through the Information Support 
Centre. The Centre provides MSMEs with free advisory 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 .23 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.7   France  
3.2.7.1   Background Info  
3.42.  France is part of the EU AEO program.  
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.7.2   MSME -specific measures  
3.43.  Customs has developed a sponsorship project together with the Union des entreprises de 
Transport et de Logistique de France (TLF) to assist their MSMEs to become AEOs. Under th e 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.  
3.44.  "Business  Advisory Offices " have been created in every Customs regional 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 ".24 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.8   Hong Kong, China  
3.2.8.1   Background Info  
3.45.  The Hong Kong Authorized Economic Operator Programme  was formally launched in April 
2012, following the successful conclusion of a pilot scheme the previous year.  
3.46.  Accreditation25:  
a. Requirements :  
• A history of good compliance with Customs requirements.   
• A good maintenance of verifiable commercial records.  
• Proven financial solvency .  
• Appropriate security and safety measures.  
b. AEO Status: Tier 1 and Tier 2 . 
 
23 Our Approach to Compliance , FRCS, https://www.frcs.org.fj/about -us/voluntary -tax-compliance/our -
approach -to-compliance . 
24 "Second WCO Global AEO Conference under the spotlight" , Laure Tempier, (2014),  
https://www.worldcommercereview.com/publications/article_pdf/859 . 
25 "Compendium of Authorized Economic Operator Programmes ", WCO, (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47  
 
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  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.  
3.47.  Benefits26: 
• Fewer  customs inspection s.  
• Prioritized customs clearance.   
• Enhanced goodwill as a secure trader with ind ustry "kitemark ", boosting customer 
confidence.   
• Strengthened competitiveness and marketability.   
• Reduced stock loss, theft and pilferage . 
• Privileged benefits granted by other economies under MRAs . 
3.48.  Small and medium enterprises (SMEs) represent 18% of compa nies accredited as AEO s in 
Hong Kong, China .27  
3.2.8.2   MSME -specific measures  
3.49.  Over 98% of the local industries are small and medium enterprises. 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.  
3.50.  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.  
3.51.  The 2 -Tier Certification syste m in the Hong  Kong AEO Programme encourages MSMEs to join. 
Tier 1 involves 10 security criteria, while Tier 2 adds two additional security criteria.  
3.52.  An Account  Manager is designated to assist MSMEs in the accreditation process, sharing best 
practices and p roviding guidance throughout the process.  
3.53.  The AEOs recognized so far, including MSMEs, could meet the accreditation criteria without 
having to make  major changes or investment.  Recognizing that the extent of compliance depends 
on the size, nature and model  of the business, etc., Hong  Kong, China exercises flexibility in the 
accreditation process as appropriate.  
3.54.  Success of the Programme hinges on the active participation of local traders.  Provision of 
tangible incentives  for participants is thus another issu e that Hong  Kong, China has to address when 
implementing 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 t he Programme.  As such, Hong  Kong, China focuses on identifying 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. 
 
26 "Compendium of Authorized Economic Operator Programmes ", WCO, (2018),  
http://www2.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium2018.pdf . 
27 "Authorized Economic Operator (AEO) Programme Trade Facilitation and Mutual Recognition ", 
AEO Hong Kong, Presentation (2018), 
https://www.wto.org/english/tratop_e/tradfa_e/comm_e/meet_oct18_hkg_e.pdf . INF/MSME/W/47  
 
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  They will enjoy more privileged benefits at international level under MRAs.  
3.55.  Consultation with MSMEs : There is mention that Hong Kong, China conducted a pilot scheme 
to test the applicability  of the Programme in Hong Kong and collected v aluable comments from the 
industries to fine -tune the Programme. However, the sources do not specify if MSMEs were directly 
consulted during the development phase or if there are ongoing mechanisms for consultation .28 
3.2.9   India  
3.2.9.1   Background Info  
3.56.  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 comprehe nsive, 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 revised AEO programme in July 2016. Further 
simplification for financial solvency a nd 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.29 
3.57.  Accreditation30: 
• 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 activity 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 service tax is collected but not deposited with 
the government.  
• The business must be financially solvent during the last three financi al years preceding 
the date of application for AEO status.  
• The business must have appropriate internal measures and controls 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.  
3.58.  Benefits :  
a. The major benefits  of AEO certification are:  
• Inclusion of direct port delivery of imports for 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 with other Customs administrations for AEO 
T2 and AEO T3.  
 
28 "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/tr atop_e/tradfa_e/case_studies_e/at_hkg_e.doc . 
29 AEO certification, ASC, (2021), https://www.ascgroup.in/service/aeo -certification/   
30 Compendium of Authorized Economic Operator Programmes , WCO, (2019),  
https://www.wbasco. org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47  
 
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  • 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 Relationshi p 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.  
[What percentage of AEOs do MSMEs represent? – no information ] 
3.59.  Very few MSMEs have tak en advantage of the AEO program in India mainly due to lack of 
awareness. It is estimated that less than 10% of AEOs are MSMEs (source: direct question to 
Mr. Anil Bhardwaj, Secretary General, Federation of Indian MSMEs, during the 2023 WTO Public 
Forum).  
3.2.9.2   MSME -related provisions  
• 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.  
3.60.  Liberalised  MSME AEO Package Overview:  
a. The Central  Board of Indirect Taxation & Customs (CBIC) introduced the  'Liberalised 
MSME AEO Package' to facilitate Micro, Small & Medium Enterprises (MSME) for AEO T1 
and AEO  T2 certification . This package aims to provi de a more relaxed set of compliance 
criteria for MSMEs.  
3.61.  Features of the Liberalised 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 period of the AEO certificate.  
3.62.  Relaxations for MSMEs:  
• The condition that the business must have handled a minimum of 25  customs 
documents in the last financia l year was relaxed. MSMEs handling 10 documents 
(five 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 financial 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 red uced to the last two financial years for MSMEs.  
• 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 various annexures required to be fi led 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.  INF/MSME/W/47  
 
- 19 - 
 
  • The annexures required to be filed for AEO T2 accreditation, i.e. , annexure  E.5.1 and 
E.5.7 for physical verification has been rationalised with one annexure of MSME 
annexure  3. 
• The time limit for processing the MSME AEO T1 and T2 applications was reduced to 
fifteen 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.  
[Were MSMEs consulted during the development of the AEO program? ] 
3.63.  Very few MSMEs were consulted for the designing of the AEO program (source: direct question 
to Mr. Anil Bhardwaj, Secretary General, Federation of Indian MSMEs during the 2023  WTO Public 
Forum). 
3.2.10   Jamaica  
3.2.10.1   Background Info  
3.64.  The AEO program in Jamaica  was launched on 28 July 2014.  
3.65.  Accreditation31: 
a. STEP 1  
• Completion of online Prequalification Questionnaire, Application & Self Assessment 
Questionnaire . 
• Review of application by JCA to determine acceptance of application . 
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 application is recommended for acceptance or provisionally accepted, letter of 
acceptance along with MOU is sent to the company for signature and returned to JCA 
Company placed on all systems to commence processing of declarations as an AEO . 
3.66.  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 . 
 
31 Compendium of Authorized Economic Operator Programmes, WCO, (2019), 
https://www.wbasco.org/ system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47  
 
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  • Easier access to authorizations and permits through the public sector. 
• Inter-Institutional Committee (PSIIC ). 
• Post clearance documentary inspection . 
• Stronger strategic allia nce with the customs agency . 
• Assignment of an Account Manager to each AEO. 
• Competitive advantage for the AEO compared to the non -AEO with regards to 
marketability: AEO status can lead to further business opportunities, as companies are 
considered secure an d reliable traders . 
• Provides faster logistics handling . 
• Reduced costs as a result of the reduction in turn -around time on the ports . 
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.10.2   MSME -specific measures  
3.67.  Jamaica  Customs grants flexibility to MSMEs in fulfilling the new requirements of their 
AEO programme.  
3.68.  Jamaica Customs decided to grant flexibility to MSMEs having difficulties to fulfil the new 
requirements put in place following the revision of the administrati on's AEO programme. "Since we 
implemented our trusted trader programme in 2009, we thought that we had an AEO programme, 
but we realized that the security elements were missing, so we decided to revamp the programme 
in order to align it to the SAFE ," expla ined a representative from Customs. "We did not want to pull 
the rug from under the feet of our MSMEs, so we allow those that cannot fulfil all the requirements 
yet, to keep some of the benefits they enjoyed before during a transition period; such benefits now 
only being granted to AEOs. We gave them two years to comply with all the requirements. If they 
do not make it, we will withdraw all their benefits ."32 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.11   Japan  
3.2.11.1   Background Info  
3.69.  The Japan AEO program  was introduced for exporters in 2006 and was subsequently expanded 
to include importers in 2007.  
3.70.  Accreditation33: 
a. Genera l 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.   
 
32 "Second WCO Global Conference under the Spotlight" , World Commerce Review, (2014), 
https://issuu.com/worldcommercereview/docs/wcrvol8issue2 . 
33 Compendium of Authorized Economic Operator Programmes, WCO, (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47  
 
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  • Post-authorisation audit. If there is a problem – "Administrative order for improvement ". 
If no change – the status is revoked.  
3.71.  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.   
• Simplification of Customs transit procedure.   
• Lodgement of import/export declaration to any customs offices (to be introduced in 
Autumn 2017) . 
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.11.2   MSME -specific measures  
3.72.  Engagement  with MSMEs: Japan has been promoting MSME participation in their AEO 
program. They have t aken proactive measures to engage potential AEOs, especially MSMEs, by:  
• Assigning a customs account manager for consultation purposes.  
• Allowing  flexibility in AEO guideline implementation.  
• Ensuring easy access  to the AEO program for MSMEs.  
3.73.  These measures aim to make it easier for MSMEs to participate in the AEO program and 
benefit from its advantages.  
3.74.  The Japanese  AEO program granted  MSME s the quasi -full procedural benefits of AEO status 
by taking advantage of authorized logistic service providers ' competency to manage the supply chain 
through Customs broker 's regime. This allows both  MSME s to avoid investment costs that can be 
high for them and Customs brokers to provide services for  MSME s.34 
[Were MSMEs consul ted during the development of the AEO program? – no information ] 
3.75.  The Japanese  government developed and promoted the AEO Program in close cooperation 
with the business sector. However, it's not explicitly mentioned if MSMEs were consulted during the 
development of the AEO program or if there are mechanisms in place for ongoing consu ltation with 
MSMEs.  
3.2.12   Jordan  
3.2.12.1   Background Info  
3.76.  Jordan Customs  initiated an AEO program, known as the Golden  List (GL) program , in 2005. 
The very first ste p 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 program. 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 
 
34 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  
 
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  program. The design of the GL program in terms of compliance has be nefited from the EU 's program 
as a benchmark.  
3.77.  Accreditation35: 
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.  
3.78.  Benefits : 
• Self-improvement by self -checks.  
• Reduce number of inspections (by expansion of green lane assignments).  
• Reduce goods post -release compliance audits. Pre -arrival clearance of goods.  
• Goods release before completing customs formalities. Give priority to th e import and 
export companies and Qualifying Industrial Zones (QIZ) companies 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.  
• 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 . 
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.12.2   MSME -specific measures  
3.79.  Jordan  offers an AEO -like program called the Silver L ist launched in 2017 to incentivize 
MSMEs to participate in trade practices 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 Go lden List program.  
3.80.  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 Silv er List with privileges before 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.  
3.81.  Facilities  provided to the Silver List companies:  
• Expansion in green and yellow lanes (customs clearance types).  
• Benefits of pre -clearance service in accordance with the applicable regulations.  
 
35 Compendium of Authorized Economic Operator Programmes, WCO, (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47  
 
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  • Priority for the completion of the export and import customs declarations for Silver List 
companies via special indication th at appears electronically on the customs declaration.  
3.82.  Customs select s the companies from importers and exporters based on analytical studies 
conducted by a Risk Management Directorate that assesses companies' compliance  to add the 
companies to the Silver L ist.36 
3.83.  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 in case they are compatible with members hip conditions .37  
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.13   Korea , Republic of  
3.2.13.1   Background Info  
3.84.  The AEO program  in Korea was launched in April 2009.  
3.85.  Accreditation38: 
a. General requirements:  
• Legal compliance.  
• Internal control.  
• Financial solvency.  
• 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 3 years, renewal within 6  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.  
3.86.  Benefits:  
a. General benefits: simplified and less physical inspection, simplified customs procedures, 
less financial burden, etc. The benefits differ according to the types of AEOs and 
AEO classes.  
 
36 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. 
37 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 . 
38 Compendium of Authorized Economic Operator Programmes, WCO, (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47  
 
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  • Simplified and less physical inspection:  
o less physical inspection by the customs in the ex/import process;  
o inspection at a plac e 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 rates, 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 cleara nce; 
o monthly instalment payment of customs duties and taxes.  
• Other: reduction of punishment for violation of customs -related laws.  
[What percentage of AEOs do MSMEs represent? – no information]  
3.2.13.2   MSME -specific measures  
3.87.  The Korea Customs Service (KCS) and the  Korea AEO Association (KAA)  support  MSME s in 
obtaining the AEO certificate. Specifically,39: 
• 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.  
3.88.  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 AEO security standards.  
• Korea Customs provides MSME consulting and educational support to help them acquire 
AEO certification, while s houldering 80 per cent of the costs for expenses . 
3.89.  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, consult ing 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 .40 
3.90.  The process  involves the following steps:  
• SMEs apply for support.  
• Korea AEO Association approves or rejects the application.  
 
39 "Smart AEO Certified System", Korea AEO Association, (2018), 
https://na.eventscloud.com/fil e_uploads/3c43775df629b46d1e2df9abeda99371_SunbokKwon_180307KoreaAE
OTheroleofKoreaAEOAssociationSmartAEOCertifiedSystem.pdf . 
40 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  
 
- 25 - 
 
  • MSMEs contract with a consulting company.  
• Korea AEO Association manages the consulting company.  
• Korea AEO Association provides training for th e applicant and AEO consultants.  
• An audit report is generated.  
• Approval is given.  
• Support expenses  are provided by the Korea Customs Service.  
[Were MSMEs consulted during the development of the AEO program? – no information]  
3.2.14   New Zealand  
3.2.14.1   Background Info  
3.91.  New Zealand 's AEO program, called the Secure Exports Scheme (SES)  was launched in 2004, 
and is open only for exporters.  
3.92.  Accreditation41: 
• 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 security plan from their 
transport operator(s). The security plan documents the policies, processes and 
proced ures that the exporter has in place that show their export products are securely 
packed, accurately accounted for, sealed with a New Zealand Customs approved seal 
and securely transported to the point of export from New Zealand. If they use a 
third-party s ite 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.  
• The Manager Service Delivery signs off on the recommendations in the Management 
Report.  
3.93.  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.  
3.94.  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 shipmen ts and complete export documentation, lowering compliance costs.  
• Provides access to border clearances with countries that have MRAs  with New Zealand 
Customs.  
3.95.  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.  
[What percentage of AEOs do MSMEs represent? – no information ] 
 
41 Compendium of Authorized Economic Operator Programmes, WCO, (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47  
 
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  3.2.14.2   MSME -specific measures  
3.96.  New Zealand  Customs recognizes that every business 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.  
3.97.  In this regard , the Secure Exports Scheme outreac h program is targeting developing 
MSME 's – It does still require the exporter (regardless of size) to demonstrate how they intend to 
comply with the terms of the minimum standards.  
3.98.  New Zealand 's approach is instructive, particularly since a large proportio n 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 .42, 43 
3.99.  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 .44 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.15   Philippines  
3.2.15.1   Background Info  
3.100.   The AEO program  in the Philippines was launched in 2019.  
3.101.   Requirements45:  
a. General :  
• Business ownership, structure, and organization.   
• Corporat e or business profile and projected 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 go ods 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.  
 
42 "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 . 
43 "Integratin g 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-author ized-economic -operator -certification -
2.pdf?sfvrsn=8c0ca64c_1 . 
44 "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 . 
45 Compendium of Authorized Economic Operator Programmes, WCO, (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47  
 
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  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 (1) year prior to the date of application.   
• Obtained the necessary permits, licences, and/or co ncessions if regulated by another 
government agency.  
• 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 unit 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.  
3.102.   Accreditation Procedure:  
a. Pre-Screening Process:  
• AEO candidate fills in forms and submits 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, t he 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 of 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.  INF/MSME/W/47  
 
- 28 - 
 
  3.103.   Benefits : 
a. Level 1 benefit s:  
• Exemption from renewal of accreditation.  
• 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.  
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.15.2   MSME -specific measures  
3.104.   The Philippines  AEO program is flexible and can provide a tailored model and benefits for 
MSMEs.  
3.105.   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 .46 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.16   Thailand  
3.2.16.1   Background Info  
3.106.   The AEO program  in Thailand was introduced in 2011 for importers and exporters and 
expanded to customs brokers in 2013.  
3.107.   Accreditation47: 
a. General requirements:  
• Be a juristic person registered in Thailand with paid -up capital : 5 million baht for 
importer -exporter and 1 million baht for customs broker . 
 
46 "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 . 
47 Compendium of Authorized Economic Operator Programmes, WCO, (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47  
 
- 29 - 
 
  • Have a stable financial status over 2  years for importer -exporter and 3  years for 
customs broker . 
• Operate in import/export or customs b roker business over 3  years.  
• No serious violation of customs law and customs related laws within 3  years.  
b. Application, Verification and Authorization process:  
• The applicant submits an application form with supporting documents and the 
completed self -assessment checklist.  
• 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.  
3.108.   When Thai Customs conducts an on -site visit (validation visit) they will notif y the applicant 
of the approval or disapproval of the application within 90 days after the submission of the 
application form.  
3.109.   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 for eign Customs Administrations having 
Mutual  Recognition Agreement.   
• Other qualified privileges will be announced by the Director General of Customs.  
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.16.2   MSME -specific measures  
3.110.   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. 
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.48 
3.111.   Thailand also has a budget for MSME outreach programs.  
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.17   Türkiye  
3.2.17.1   Background Info  
3.112.   The AEO program  in Türkiye  was launched in January 2013.  
 
48 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  
 
- 30 - 
 
  3.113.   Accreditation requirements49: 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 tran sport records.   
• proven financial solvency.  
• appropriate 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 ). 
• 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.  
3.114.   Benefits:  
• Lower risk score for risk profiling within the risk management system . 
• Priority treatment if physical or pap er-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 . 
• Right of local clearance (for im ports and exports ). 
• Right of authorized consignor and authorized consignee . 
• Other facilitations currently recognized for authorized traders in Türkiye.  
• Use of the AEO logo . 
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.17.2   MSME -specific measur es 
3.115.   Türkiye  has recently started a project to increase  MSME s' participation in the AEO program. 
The objective is to increase compliance and institutional structure of these small firms. The project 
involves subsidizing  MSME s to fulfil compliance and physical security requirements.  MSME s are 
 
49 Compendium of Authorized Economic Operator Programmes, WCO, (2019), 
https://www.wbasco.org/system/files/documentos/aeo -compendium.pdf . INF/MSME/W/47  
 
- 31 - 
 
  planned to be selected us ing a predetermined set of criteria .50 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.18   Uganda  
3.2.18.1   Background Info  
3.116.   The AEO program  in Uganda was launched on 5th September 2013.  
3.117.   Accreditation Requirements51: 
• An applicant must be a party involve d in the International Trade Supply Chain as a 
player . 
• Have a Compliance history of at least 3 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 Applic ant must be financially solvent . 
3.118.   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 . 
3.119.   Benefits:  
• Priority treatment in Customs areas . 
• Simplified Customs procedures . 
• Pre-arrival clearance . 
• Choice of place of Customs control . 
• Self-management of Customs bonded warehouses . 
• Automatic renewal of customs licences . 
• Withholding tax exemption . 
• Priority to participate in all customs initiatives . 
[What percentage of AEOs do MSMEs represent? – no information ] 
 
50 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 . 
51 "Compendium  of Authorized Economic Operator Programmes ", WCO, (2020) 
https://www.aladi.org/sitioaladi/documentos/facilitacioncomercio/aeo -compendium.pdf . INF/MSME/W/47  
 
- 32 - 
 
  3.2.18.2   MSME -specific measures  
3.120.   Uganda Customs  plans to develop the simplified AEO P rogram for particular sectors such as 
textiles and automobiles as a part of national 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 ar e 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 compani es 
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 reduce informality and capacity -building 
in the female population .52 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.19   United Kingdom  
3.2.19.1   Background Info  
3.121.   The UK's AEO program  was launched in September 2012.  
3.122.   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 Ireland.  
• Actively involved in customs operations and i nternational 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 procedures.  
• 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 
3 years.  
• Customs record keeping: Efficient system for managing commerc ial and transport 
records.  
• Proven financial solvency: Financial records of the business covering the last 3  years.  
• Practical standards of competence or professional qualifications:  Show practical 
competence in customs matters for the previous 3 years.  
• Security and safety: Procedures to protect the business and supply chain from risks.  
 
52 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  
 
- 33 - 
 
  3.123.   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 traders: Priority treatment for customs controls, reduction, or 
waiver of comprehensive guarantees, 70% reduction in a business 's defe rment account 
guarantee, and more.  
b. AEOS benefits:  
• Reduced declaration requirements for entry and exit summary declarations.  
• Reciprocal arrangements and mutual recognition with countries like  China , 
the European  Union, Japan, New Zealand , Singapore , Switze rland and the 
United  States . 
• Benefits can include faster clearance at the frontier, fewer interventions, and lower risk 
scores.  
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.19.2   MSME -specific measures  
3.124.   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 .53 
3.125.   In the UK, 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 chain .54 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.20   United States of America  
3.2.20.1   Background Info  
3.126.   The United States'  Authorized Economic Operator  (AEO) program,  known  as the 
Customs  Trade Partnership Against Terrorism (CTPAT), was published as part of the mutual 
recognition efforts to secure and facilitate trade in North America in November 2001.  
3.127.   Accreditation (criteria)55: 
• Certify security profile within 90 days once all information has been provided  to 
Customs  & Border Protection . 
• Conduct on -site validation – within one year of certification . 
• Requires that Partners update their security profile and risk assessments on an annual 
basis. 
 
53 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 . 
54 "Second WCO Global AEO Conf erence under the spotlight ", WCO, (2014), 
https://www.worldcommercereview.com/publications/article_pdf/859 . 
55 "Compendium  of Authorized Economic Operator Programmes ", WCO, (2020) aeo-compendium.pdf 
(aladi.org) . INF/MSME/W/47  
 
- 34 - 
 
  • Conduct revalidations within 4 years of the initial validation or sooner based on risk as 
assessed by CBP.  
3.128.   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 . 
• Expedited trade processing . 
• Access to a Supply Chain Security Specialist (S CSS). 
• Penalty mitigation . 
• Benefits through mutual recognition . 
[What percentage of AEOs do MSMEs represent? – no information ] 
3.2.20.2   MSME -specific measures  
3.129.   The United States notes that AEOs must show they are meeting minimum security criteria. 
However, these criteria are written in a way that allows for flexibility during implementation. 
U.S. Customs & Border Protection relies on their Supply Chain Security Specialists to review the 
company 's security profile and verify on -site that these criteria are met. The se specialists also 
conduct outreach to MSMEs to explain the eligibility criteria and application process, as well as to 
the trade community in general .56 
[Were MSMEs consulted during the development of the AEO program? – no information ] 
3.2.21   Uruguay  
3.2.21.1   Background  Info 
3.130.   Uruguay's Programa Operador Económico Calificado  (OEC), or Qualified Economic Operator 
Program, was established 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 . Negotiations are also under way for an MRA with the 
Pacific Alliance.  
3.131.   Accreditation procedure and criteria57: 
• Legal requirements . 
• Financial solvency . 
• Satisfactory c ustoms and tax compliance history . 
• Customs and tax compliance history . 
• Security Management System . 
 
56 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 . 
57 "Programa Operador Económico Calificado  Dirección Nacional de Aduanas Uruguay ", Ministerio de 
Economia y  Finanzas de Uruguay, (2023)  
https://www.wto.org/english/tratop_e/msmes_e/uruguay_presentacion_oec.pdf . INF/MSME/W/47  
 
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  3.132.   Benefits : 
• Assistance for OEC operators . 
• Electronic  file processing priority . 
• Simplified border crossing procedures . 
• Consolidated freight transport . 
• Reduced red and orange lane review . 
• Inspection priority . 
[What percentage of AEOs do MSMEs represent? – no information]  
3.2.21.2   MSME -specific measures  
Designed for all operators  of any size, the program is voluntary and provides a u nique 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. Operato rs include exporter s, 
importers, port terminals, cargo terminals, carriers, free zone operators, free zone users, freight 
agents, and customs brokers . 
[Were MSMEs consulted during the development of the AEO program? – no information]  
3.3  Key Lessons Learned  
3.133.   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 Auth orized Economic Operator Certification " 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, f ind ways 
of enhancing SME participation 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 generatin g economic activity and employment 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 bu sinesses, employ over half of the 
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 
developme nt and growth of MSMEs.  INF/MSME/W/47  
 
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  o APEC also 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 Initiat ive: The Boracay Action Agenda  to 
Globalize MSMEs focuses on priority areas of cooperation such as trad e 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.  
o Recognizing the signif icant 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 stre amline and make trade processes more predictable through 
digitisation and other best practices. This helps businesses trade more easily and governments 
modernise trade procedures while ensuring border security.  
5.3.  The Alliance  is led by the Center for Interna tional 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.  
5.4.  Alliance's Approach to Support MSMEs58: 
• 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 othe r trade development organizations, the Alliance 
developed MSME Mainstreaming Guidelines. These guidelines consist of five  steps:  
o identify relevant MSMEs for project development ; 
o understand the specific trade facilitation challenges of MSMEs ; 
o analyse and de fine the project 's impact on MSMEs ; 
o design MSME -specific project activities ; 
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 als o includes MSME characteristics in measurement 
plans.  
5.5.  The Global  Alliance for Trade Facilitation has also taken specific measures to support MSMEs in 
the context of Authorized Economic Operator (AEO) programs  and other trade facilitation 
 
58 "Small businesses, great opportunitie s", Global Alliance for Trade Facilitation, (2021),  
https://www.tradefacilitation.org/content/uploads/2022/02/alliance -small -businesses -great -opport unities -
paper.pdf . INF/MSME/W/47  
 
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  initiatives59: 
1. MSME Representation in Public -Private Dialogues (PPDs):  
• The Alliance ensures the representation of MSMEs in public -private dialogues (PPDs). 
These dialogues provide a platform for the public and private sector stakeholders to 
co-create or participate in projects on an equal footing.  
• The Alliance has leveraged its relationship with the International Chamber of Commerce 
(ICC) and its national committees in each country to ensure not only private sector but 
also small business representation i n project design and implementation.  
2. AEO Project 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 the 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 countries. 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 digitizi ng the import process for agro -industrial products, 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.  
 
__________  
 
59 "Small businesses, great opportunities ", Global Alliance for Trade Facilitation, (2021),  
https://www.tradefacilitation.org/content/uploads/2022/02/alliance -small -businesses -great -opportunities -
paper.pdf . 