Page 37 - Linkline Yearbook 2018

“At the moment TIR may or may not prove to be useful in the concept of customs post Brexit,” says Phonsey Croke of Croke Consulting, a Customs expert. “It depends on the outcome of the trade related talks between the EU and the UK which are likely to commence late 2017 and early 2018.” “The one clear way of minimising this is to make use of customs simplifications which are currently in the Union Customs Code. This assumes that the UK will mirror such simplifications in their upcoming customs legislation. The way to avail of these simplifications is to become a certified Authorised Economic Operator. “ However, he points out, this has its own challenges for Irish companies since today most are not involved in customs business at all. In addition, he says, it will not be enough for the transport service providers to become AEO certified. “The principals (manufacturers/ exporters etc.) must also be certified. The principals will need the AEO certification more so than the transport providers.”
Authorised Economic Operator
In essence the AEO is an internationally recognised quality mark, which indicates that the role of qualifying businesses involved in the international supply chain is secure and that their customs controls and procedures are compliant. After 11th September 2001, in order to reduce the risk of such threats, the World Customs Organisation (WCO) devised a system for increasing security of the supply chain. These new security measures such as advance cargo information and more robust risk analysis systems had the potential to slow down the movement of goods through borders. In order to lessen this slowdown, the concept of AEO was introduced by the WCO. The EU adopted a similar programme shortly afterwards.
Becoming AEO certified requires implementation of a comprehensive customs compliance programme within a business. This will provide assurance to the business that its customs procedures and practices are up to standard. Companies will be cleared through customs with the minimum of formality removing any potential for delays as a result of the physical searching of containers and so on. Getting AEO certification should position a business well in light of the fact that customs simplifications are now exclusively available for AEO certified entities. These simplifications will, among other things, only require the submission of one customs report per month in respect of all transactions for that month – reducing overhead compliance costs and helping to create a seamless border.
Mutual recognition between AEO programmes involves a country’s government formally recognising the AEO programme of another country’s government, and thereby granting benefits to the AEOs of that country. These AEO programmes will really show benefits for all of those involved in imports and exports once mutual recognition is achieved between AEO programmes globally.
The first mutual recognition agreement was completed between the United States and New Zealand in June 2007. A similar agreement has been concluded between the EU and Japan. Canada and Russia are currently in discussions with the EU about mutual recognition as well.
Phonsey Croke, Croke Consultants
The CharTered InsTITuTe of LogIsTICs & TransporT 37
BREXIT SOLUTIONS