Changes to the Authorized Economic Operator
Significant amendments have been made to the Authorized Economic Operator (AEO) with new obligations introduced, particularly for companies entitled to hold that status, through the Regulation Requiring Amendments to the Regulation on Facilitation of Customs Transactions (GIKY) published in the Official Gazette dated June 25, 2018.
The topic of this article cover the most significant amendments.
1. Internal aud t, structure of nternal control and tra n ng
Regarding the requirement for reliability and traceability of commercial records, the customs administration expects companies to have an in-house system to verify and certify that the customs procedures are legally compliant and that goods are appropriately declared to the customs authorities.
The following are the requirements for the implementation of internal checks and audits: Staff/units handling the internal audit/check should be different from the direct representative of the customs procedures or the units of those persons if they are carried out in-house
In the circumstance that they are handled through service purchase, staff/units handling the internal audit /check should be different from the direct representative of the customs procedures or the units of those persons.
2. Amendments follow ng the ssuance of an AEO
Following the issuance of an AEO certificate, in cases where new persons are assigned or where changes are made in the physical structure of the existing or new facilities, the opening of a warehouse or leasing under the authority of the members of the board of directors, the real persons who have more than ten percent of capital and the personnel who have representative authority in the customs and foreign trade transactions should submit the required documents within 5 working days following the date of changes.
3. L ab l t es of compan es ent tled w th an Author zed Econom c Operator
As the number of companies holding the AEO certificate increases, the significance of ensuring the validity of an existing certificate as well as the procedures for obtaining one have increased. Within that context, the Customs Administration expects that companies holding an AEO certificate will immediately notify it of changes made within the scope of the certificate and will take appropriate action according to the conditions of the AEO in terms of any new service procurement situations to be made under the certificate.
4. Appl cat on requ rements for author zed sender and rece ver
Following the changes on the application requirements for authorized sender and receiver, it is expected that the companies that will apply to these authorities will have met at least one of the following conditions within one year the application or on the first day of the month in which the application is submitted:
Having transmitted goods within the scope of at least five hundred transit declarations (including TIR Carnets), Handling transactions in the context of a total of five hundred transit declarations and summary declarations, provided that at least three hundred of them are transit declarations (including the TIR Carnets). In addition to these conditions, there is also a requirement that companies have at least one facility used under their authority.
7. Prev ew of the terms of author ty and perm ss ons
One of the significant amendments made on June 25 is giving oversight powers the regional directorate to determine whether the conditions for preliminary review have been met, monitor progress and issue a certificate every 3 years as of the date that the AEO is issued. Accordingly, the documents related to these conditions, as well as the Annex-2 questionnaire and activity reports, are submitted to the General Directorate by the regional directorate every three years from the date the certificate was issued within five workdays following the completion of the preliminary monitoring.
8. On-s te mon tor ng and retrospect ve control of the cond t ons of author zat ons and perm ts
After preliminary review, an updated questionnaire and annual report will be sent to the General Directorate and the company will be subject to on-site monitoring and checks for customs procedures. The company will be inspected every three years to ensure compliance. Likewise, every three years customs procedures will be checked retrospectively in accordance with the Regulation on Post-Control and Risky Operations.
9. Conclus on
As provided above, within the scope of the Regulation on the Amendment to the Regulation for Facilitation of Customs Transactions, significant responsibilities have been introduced for companies entitled to an AEO certificate. Some of the most significant of those arrangements are: A continuous training, internal control and audit structure Notification of the Administration concerning any changes within the company (such as the changes in members of the board of directors, real persons with more than ten percent of the capital, customs officers and representatives in foreign trade transactions, and new warehouse openings) Preparation of an annual activity report,
Being prepared for inspections once every 3 years
Being prepared for on-site monitoring once every 3 years