On 07.11.2019, the Law of Ukraine dated 02.10.2019 No. 141-IX ‘On Amendments to the Customs Code of Ukraine on Certain Issues of Functioning of Authorised Economic Operators’ came into force.

The Law was developed to fulfil Ukraine’s obligations under the Association Agreement with the European Union and the World Trade Organisation’s Trade Facilitation Agreement.

The Law introduces into Ukrainian legislation the mechanism of the institute of authorised economic operators (hereinafter referred to as AEOs), similar to the one in the EU, with the prospect of further mutual recognition.

An authorised economic operator is a status granted by the State Customs Service of Ukraine (SCSU) to companies that meet high standards of customs legislation and supply chain security.

There are the following types of AEO authorisations:
authorisation to apply special simplifications (hereinafter referred to as AEO-C);
confirmation of safety and reliability (hereinafter – AEO-B).

Today, we would like to take a closer look at one of the AEO-C authorisations.

Who can obtain the AEO-C status?

In accordance with Article 12 of the Customs Code of Ukraine, any resident company that performs any role in the international supply chain can obtain an AEO-C authorisation:

  • Manufacturer
  • Exporter
  • Importer
  • Customs representative
  • Carrier
  • Freight forwarder
  • Warehouse keeper

An enterprise intending to obtain the AEO-C type authorisation must meet the following criteria:

  • compliance with the requirements of the customs and tax legislation of Ukraine, as well as the absence of facts of criminal prosecution;
  • proper accounting system, commercial and transport documentation;
  • stable financial position.

A special criterion for this type of authorisation is ‘ensuring practical standards of competence or professional qualification of the responsible official of the enterprise’. In other words, the company must have experience in operating within the international supply chain and have a customs officer or customs officer with at least 3 years of experience.

The procedure for obtaining AEO-C authorisation consists of the following stages:

  • Preparatory stage (analysis of the company’s own internal processes and procedures for compliance with the criteria);
  • Submission of an application and self-assessment questionnaire to the SCSU;
  • Assessment of the company’s compliance with the AEO-C criteria;
  • Adoption of a decision by the SCSU to grant or refuse to grant AEO-C authorisation;
  • Issuance of the AEO-C certificate (in case of a positive decision).

*The authorisation is free of charge and is valid for an unlimited period of time.

What benefits will a company with the AEO-C status receive?

  • Reduced number of inspections and documents to be submitted: AEO-C companies are exempt from certain types of customs control, which significantly saves time and resources;
  • Priority customs clearance and a special lane at the border, which in turn saves time and money;
  • Reduced risk of delays at customs: AEO-C companies are considered to be more reliable partners for customs authorities, so their goods are less likely to be subjected to detailed inspections, which reduces the risk of delays at customs;
  • Obtaining the AEO-C status indicates that the company meets high standards of customs security and reliability. This can significantly improve the company’s image and business reputation both in the domestic and international markets;
  • AEO-C companies become more attractive partners for other supply chain participants. This can lead to new business opportunities and expanded markets;
  • AEO logo.

Regarding the simplifications received by an enterprise with the AEO-C status:

  • general financial guarantee – for several obligations at once;
  • independent application of special seals;
  • simplified declaration;
  • release at the location: the cargo is sent to you without customs inspection, you clear it yourself, or vice versa, immediately after loading the export cargo, it crosses the checkpoint.

It is worth noting that the AEO status allows companies to enjoy benefits not only under the CCU, but also to obtain authorisations to apply transit simplifications under the Convention on a Common Transit Procedure in a short time and without undergoing additional assessment.

A company’s right to apply the simplified procedure is confirmed by an order of the State Customs Service and the relevant authorisation to apply the simplified procedure.

We would like to take this opportunity to remind you that our company, PENTADA GROUP, provides a wide range of consulting services, including obtaining authorisations.