Benefits of an AEO-certified freight forwarder
28 November 2023
Are you familiar with the term “AEO”? It stands for “Authorized Economic Operator”, which means as much as “permitted market participant.” Ritra Cargo has been a proud AEO status holder since 2010. How do you notice that? If all goes well, you don’t. Because that means we do our job flawlessly. Do you know why it is so important for you to have shipments carried out by an AEO-certified freight forwarder? We are happy to explain it to you.
Forwarders who have AEO status work closely with customs. In fact, both are responsible for the security of incoming and outgoing goods. AEO status is recognised internationally. Freight forwarders who are status holders are considered reliable logistics partners throughout the European Union. And given the increased crime in European ports, this is very important for those who like to do honest business.
AEO status is available for two authorisations: customs simplifications and security. To obtain one or both, a freight forwarder must meet a series of stringent requirements, such as:
- Implementing appropriate security standards pertaining to both people and assets involved in goods transportation and customs matters
- Having well-established trade and transportation records that allow for customs inspections
- Being demonstrably qualified to handle customs matters
In addition, Customs regularly tests whether a freight forwarder with AEO authorisation(s) is still meeting all requirements. Ritra Cargo has had AEO authorisations for both security and customs simplifications since 2010.
Expedited handling of customs matters
Because freight forwarders with AEO status are recognised by customs as reliable, international trading partners, this has several advantages when importing or exporting goods. For example, forwarders in possession of an AEO permit receive preferential treatment, such as:
– Short lines of communication and close cooperation with customs
- Fewer documents and goods inspections by customs
- Priority in customs inspections
- Advance notice in the event of customs inspections
- Choice of location of inspections (upon request)
Having AEO status thus means fewer delays in imports and exports. According to Evofenedex, the probability of goods shipped by or shipped to a company with AEO status being selected for customs inspections is about 50% lower. Ritra Cargo is permitted to make advance declarations, so we are more likely to be aware of any customs inspections sooner. Even before the ship is docked, we already know if there will be an inspection, and if yes, we even know the type of inspection. So by working with a freight forwarder with AEO status, you too will be better prepared, and it means that as a shipper, you have your goods faster. In addition, of course, you always have some control as well. For example, by paying close attention to what is on your invoice.
Everything in order internally
Of course, a freight forwarder with AEO status is expected to have its processes and procedures in perfect order. This prevents and avoids problems and errors in customs and other matters. At Ritra Cargo, we are committed to ensuring all processes and procedures are transparent. Therefore, we have set out all of these in the Administrative Organisation and Internal Control (AO/IC) description.
And although it is not of direct relevance to AEO status, internally we do not deviate from the lodged procedures. To provide the best service to customers, we believe that transparency should be paramount. What can you expect from us? Crystal clear financial processes and procedures that we improve continuously.
Do you still have questions about AEO? Please contact us.
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