Jamaica Customs Agency’s Authorised Economic Operator Programme relaunched
THE JAMAICA Customs Agency (JCA), as part of its commitment to facilitate international trade and uphold global security standards, has relaunched its Authorised Economic Operator (AEO) programme, which uses risk-management techniques to assist in streamlining the trade process. The AEO programme represents an international platform where both customs administrations and the traderelated private sector can share in the responsibility of securing the international supply chain. Customs is not only tasked with revenue collection and securing the borders, but also has to incorporate international trade security as a measure of global cooperation to combat many of the challenges faced. To enforce these security measures and facilitate trade, international partnerships have to be fostered, where each partner is capable of supporting the overall objectives of this global effort. As such, the development of customs-to-business relations is a necessary component of the AEO programme, designed to engage and validate all players in the trade process.
Partnerships within the trade industry ensure the sustainability of the AEO programme, where traders are encouraged, through incentives, to become more compliant and receive the trade facilitation benefits accorded. The quality and extent of these benefits have to be tangible and justified against the requisite expenses needed to obtain an AEO accreditation. Less intrusive control mechanisms, periodic reporting, payment deferment and reputational benefits are some of the methods used by Customs to foster long-term compliance with traders. The benefits are even more worthwhile if they are to be internationally accepted, through the conclusion of mutual recognition agreements or arrangements between AEO beneficiaries and their international trading partners.
The World Customs Organisation (WCO), in facilitating this effort, supports national customs administrations as well as the business community by providing the tools and guidelines for achieving the required levels of competence in line with global standards.
THE WORLD CUSTOMS ORGANISATION
The WCO has played a significant role in the implementation of the AEO programme and sets standards and guidelines through the SAFE Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework). The WCO provides capacity building to its members in close collaboration with donor organisations through national, regional and international activities. The WCO also recognises and places high priorities on partnerships with the business community, as evidenced in the WCO Private Sector Consultative Group which represents international trade interests. With a membership of 30 trade-related companies and associations, the USCG advises trade policy and is able to raise and advise on issues relating to global trade, as well as other issues directed by the WCO secretary general. The WCO facilitates trader compliant programmes, such as the AEO to aid customs administrations in focusing otherwise scarce resources on non-compliant traders by utilising risk assessment tools and developing programmes to foster compliance.
AUTHORISED ECONOMIC OPERATOR
The SAFE Framework defines an 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’. AEOs include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors. Thus, the SAFE AEO programme is intended to include all economic operators to enhance security along all points of the supply chain. The Programme uses a risk-based approach to allow customs administrations the flexibility to effectively use their resources to contribute to the international objective of trade facilitation and supply chain security.
JAMAICA CUSTOMS AGENCY’S AEO PROGRAMME
The Jamaica Customs AEO programme was initially activated in 2009 and positions Jamaica as the first Englishspeaking Caribbean country to implement the AEO Programme. This programme has since been revamped to ensure the integrity of the value and supply chain and was relaunched on July 28, 2014.
Designed to encourage compliance and reduce threats to security, the AEO programme requires the certification of all personnel involved in the import/export process.
Internationally, the AEO programme has been accepted in over 50 countries worldwide, and allows customs administrations to focus resources on potentially unsafe and high risk entities and individuals to maintain security standards and foster compliant trade. The AEO programme facilitates a working partnership between traders and the JCA that will improve customs-toclient relations, customer service, and improve the business processes of both customs and the enterprises that seek validation. The AEO programme is a JCA-led initiative that seeks compliance throughout the revenue arms of the Government of Jamaica, including income tax and general consumption tax.
CRITERIA FOR OBTAINING JAMAICAN AEO STATUS
Record of compliance with Customs requirements and other regulatory bodies Satisfactory system of managing commercial and transport records, as well as internal processes Proven financial solvency Appropriate security and safety standards
BENEFITS OF AEO STATUS Customs 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 Easier access to authorisations
Commercial benefits International benefits
The opportunity to conclude mutual recognition agreements with other customs administrations having similar AEO programmes. Recognition as safe and secure business partners, thereby opening the possibility of accessing previously inaccessible or difficult to penetrate markets. Improved security and communication among the supply chain partners. In order to be considered for the AEO programme, entities must complete a prequalification questionnaire and an application and selfassessment questionnaire. These documents are available at http://www.jacustoms.gov.jm and must be submitted online. and permits through the Public Sector Inter-Institutional Committee. Less pre-release documentary scrutiny. Improved trader compliance Assignment of an Account Manager for each AEO. Improved competitive advantage – AEO status can lead to further business opportunities as companies are considered secure and reliable traders. Faster logistics handling. Reduced costs as a result of the reduction in turnaround time on ports. As a result of the controls required by the AEO programme, there is smoother business flow and improved quality output because processes are well documented. Reduced contamination and pilferage of goods Improved planning