BURS implements AEO programme
Botswana Unified Revenue Service ( BURS) is currently implementing the Authorised Economic Operator ( AEO) programme to ease trade and make it convenient for traders to move their goods across the borders.
According to Commissioner General, Jeanette Makgolo, pre- engagement activities have been conducted with some potential users of the facility and efforts are ongoing to include more. Currently, there are three traders enrolled in the programme, and efforts are ongoing to have 10 altogether by the end of the current financial year, March 2024.
As a member of Southern African Customs Union ( SACU), BURS has collectively signed a Mutual Recognition Agreement, which is an extension of the programme that allows participating traders to enjoy the benefits of the programme beyond borders. Acting Commissioner Customs Service, Molemi Pule explained that since the enrolment into the programme is voluntary, companies have to indicate interest, thereafter they are issued with a self- assessment questionnaire.
“Once you have submitted your questionnaire, we then subject a trader to an audit, do a risk and credibility assessment, and also check whether you have the financial muscle to avoid risks,” he said, adding that once those are satisfied, a company is enrolled to enjoy the benefits. Pule said currently BURS is engaging in a robust campaign and has given about 35 companies self- assessment questionnaires, out of the 35, nine potential companies are at the final stage of submitting their self- assessment questionnaires.
“We have set ourselves a target of 10 companies this financial year. We are confident that this year, we will get that 10,” Pule said. The Commissioner General further explained the general prerequisites of the framework that was developed in 2015 by the World Customs Organisation ( WCO), which state that a trader must demonstrate compliance with Customs’ requirements, have a satisfactory system for management of commercial records and financial viability. They also look at the trader’s consultation, corporation and communication with Customs service, as they need to understand tax laws and be reachable to Customs offices. Makgolo said there has to be information exchange, access and confidentiality from Customs to the trader, adding that they have to ensure cargo security, conveyance security, premises security, personnel security, trading partner security, crisis management and incident recovery. “As BURS, we have to be as ready for this as much as those who are accredited meet the requirements,” Makgolo said.
The programme is aimed at segregating traders according to their compliance status. Those who are compliant with the revenue authorities’ laws are recognised by being granted sector- specific benefits to enable smooth trade across borders. The programme is also aimed at rewarding traders with a proven history of compliance with revenue and customs laws. Others include enhancing voluntary compliance, strengthening partnerships between BURS and the trading community, to improve service delivery and reduce the cost of doing business, to balance trade facilitation and customs controls and to secure the international supply chain, as well as promote seamless cross- border processing through national and international mutual recognition. The AEO is a globally adopted trade facilitation programme, whose genesis dates as far back as 1999, having been envisioned in the WCO revised Kyoto Convention. It was further expounded in the WCO Safe Framework of Standards in 2005, as a programme geared towards securing and facilitating trade. Earlier this year, BURS in collaboration with SACU, engaged stakeholders on the AEO programme, Makgolo said in line with set standards and international best practice, BURS continues to collaborate with other customs administrations through Memoranda of Understanding, among other instruments. She said such arrangements make way for collaborative efforts in the development and implementation of reforms and organisation initiatives such as the AEO programme.
SACU Executive Secretary, Thabo Khasipe said at the time that while Botswana has three accredited operators, Namibia has one, Eswatini has two, Lesotho has 10 operations, and South Africa has 160, with two that are currently accredited in a much higher tier. Khasipe explained that the first tier of accreditation is involved with
Compliance of the trader. It is where the business is considered compliant based on its track record as an exemplary trader and corporate citizen. At this stage, the AEO programme allows the trader to enjoy VIP treatment and hassle- free access to trading across borders within SACU. “You are not subjected to customs checks that would otherwise be subjected to, and in the unlikely event that you have to be, such checks are done at your premises,” he said at the time, adding that the credibility will lie in the SACU partnership with BURS, which would have satisfied itself through the accreditation process that a trader is a low risk client and therefore deserves to be given that red carpet treatment. The business will be initially subjected to holistic reviews to validate financial viability, whether business processes are credible and an audit trail would be available, among other things. He further said the higher tier is involved with Safety and Security, and it further affirms that a trader is not only compliant but their supply chain management is considered safe from risks. So far within the SACU region, only South Africa has two traders accredited under the Safety and Security tier. Khasipe had stated that the AEO is not an end in itself, but is meant to achieve higher levels to enable countries within SACU including Botswana to grow their economies, and benefit of citizens. The impact of the programme should be assessed continuously. His view is that when businesses are accredited within member states of SACU, intra- SACU trade will be encouraged, as well as intra- Africa trade. To this end, African countries trade more with the rest of the world but among themselves. “This is an anomaly that we need to acknowledge. Intra- SACU trade is very low whereas trade within other regions is higher,” he said.