Authorised Economic Operator (AEO)
What is the Authorised Economic Operator (AEO) ?
AEOs are the companies ensuring the security of their supply chain, carry out their operations in cooperation with customs authorities and benefit from designated facilitations, organise and implement their business processes according to the safety and security measures determined by customs authorities based on international standards
What is the legislative basis of AEO in the Turkish Legislation?
The legislation for the AEOs are laid down in:
- Article 5A of the Turkish Customs Code,
- Turkish Customs Implementation Regulation on Simplification of Customs Procedures.
What are the criteria for the AEO Certificate?
The companies which;
may apply for the AEO Certificate.
- are reliable,
- have adequate traceable documentation,
- have financial solvency,
- practice the necessary safety and security measures,
- are in operation for at least three years,
- are established in Turkey
How many types of ATS are applicable and what are their benefits?
A4) There is only one type of AEO in Turkish Legislation covering all facilitations.
All AEOs may benefit from the following facilitations:
- Ask for the right of local clearance and authorized consignor&consignee,
- Use lump-sum guarantees,
- Use partial guarantees,
- Issue A.TR circulation documents,
- Issue EUR.MED invoice declaration,
- Submit incomplete declaration and documents,
- Facilitation for free alongside ship declaration,
- Laboratory analysis report facilitations,
- Facilitations on similarity checks,
- Summary declaration with reduced data,
- Blue-line facilitations,
- Blue-line facilitations on free alongside ship declarations,
- Fewer documentary and physical controls beside control priorities.
Who can submit an application for the AEO Certificate?
All manufacturers established in Turkey and engaged with foreign trade may submit an application to receive an AEO Certificate.
What is the application process for AEO Certificate?
A6) Companies requesting certification are obliged to lodge an application along with the required documents to the Regional Customs and Trade Directorates they operate with. Following the completion of the application process, the regional directorate will examine the submitted documents and decide whether they are appropriate.
If the documents are appropriate, the regional directorate will send these documents to the Ministry of Customs and Trade for the initiation of the audit process. The designated auditors will visit the premises of the company and conduct a due diligence process and verify if the company meets the necessary documentation and implementation as well as the necessary safety and security criteria. The auditors will write a report about their findings and send this report to the headquarters.
At the headquarters, the audit report and submitted documents will be reviewed, and certificates will be granted to the companies that are found eligible by regional directorate.
For how long will the AEO certificate be valid?
The Certificate’s validity is indefinite as long as the criteria are met. There will be periodic controls by the Ministry to verify if the companies will continue to satisfy the criteria. Besides, the certificates will be suspended or revoked according to their offences if companies fail to comply with the stipulated rules.
What are the other benefits of AEO beside trade facilitation practices ?
Apart from the rights granted to companies as regards reduced lead times and costs, the AEO status, with the help of similar programs of many other countries, provides companies with a large scope of recognition among international parties. This brings in a marketing advantage.
The greatest benefit is obtained by the signing of Mutual Recognition Agreements (MRA) with other countries. MRAs ensure the mutual recognition of AEO certificates and facilitate the procedures for the recognized AEO certificates.Turkey has signed an MRA with South Korea on June 9th, 2014. In addition, Turkey has ongoing negotiations with some countries such as USA, Georgia, Kazakhstan..
The AEO program of Turkey ushered in a new era for customs procedures and it is expected to greatly facilitate the trading of Turkey with its trading partners. The AEO program is a major step to reach our vision of being the country where trade is conducted in the easiest and the safest manner.