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Authorised Economic Operator – AEO
"The AEO Certification is about convenience and facilitation, and those that are not AEOs will simply not benefit from expedited processes, preferential opportunities and peer group recognition. It may however have a negative impact on their supply chain or a customer's vendor selection process. Think about it — after getting your AEO authorization would you want to risk it by being associated with a non-certified partner?"
- JP Morgan Chase Vastera
International business magazine, Forbes outlined how the EU's recently introduced AEO programme could have a profound affect on SMEs;
Losers:
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Vertical integration of trade logistics and high-tech monitoring requirements are likely to sweep away smaller firms. The impact will be mainly indirect
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Small logistics companies will find themselves unable to comply with the requirements of a system that is fully integrated globally
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Small and medium-sized enterprises generally will find themselves unable to bear the high cost of new security measures for relatively small trading volumes
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Some developing countries that cannot meet the cost of these new initiatives, or other compliance requirements, will find their goods and products delayed, inspected and generally subject to additional scrutiny
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New customs measures will entail fundamental changes to the cost and way international trade is transacted. This suggests growth in the market for high-tech research and products, and a vertical integration of supply chain logistics. Small and fragmented logistical operations are unlikely to be viable."
The Benefits of AEO Certification:
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Cut Red Tape
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Grow Exports
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Increase Competitiveness
- Josephine Feehily
Irish Revenue Commissioner
Director General of Irish Customs
"Although the AEO programme is potentially onerous on traders, we will make every effort to mitigate the effect of this requirements. The fact is that 9/11 happened, and because of that, the US, the EU and the WCO (World Customs Organisation) are taking increased security measures to ensure that they properly monitor everything that comes into their space. Without AEO, this would be difficult for Irish and European business. In actual fact, AEO is the solution to the problem. Ultimately, these new regulations won't delay trading – they will facilitate it within a security context."
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