3. TYPES OF AEO CERTIFICATES 23 September 2014

AEO Certificates AEO C - Customs simplifications AEO S - Security and Safety AEO F - Customs simplifications + Security and Safety

AEO C - Customs simplifications economic operator is entitled to enjoy benefits from simplifications provided under customs rules conditions laid down in Articles 14h, 14i and 14j of the Implementing provisions to the CCC (2454/1993)

AEO S - Security and Safety economic operator is entitled to enjoy benefits from facilitations of customs controls relating to security and safety when the goods enter the customs territory of the Community, or when the goods leave the customs territory of the Community conditions laid down in Articles 14h to 14k of the Implementing provisions to the CCC (2454/1993)

AEO F - Customs simplifications + Security and Safety economic operator is entitled to enjoy benefits from the simplifications of AEO C and facilitations of AEO S conditions laid down in Articles 14h to 14k of the Implementing provisions to the CCC (2454/1993)

6. APPLICATION PROCESS FOR OBTAINING THE AEO CERTIFICATE 23 September 2014

A) INFORMATION PUBLISHED ON THE WEB SITE ON AEO

Examples of AEO web sites DG TAXUD ustoms/policy_issues/customs_security/ aeo/index_en.htm ustoms/policy_issues/customs_security/ aeo/index_en.htm AEO Guidelines AEO Self-Assessment Threats, risks and possible solutions Security declaration AEO contacts and tools Mutual recognition Database on AEO 2/eos/eos_home.jsp?Lang=en FINANCIAL ADMINISTRATION OF REPUBLIC OF SLOVENIA s_pooblascenega_gospodarskega_subj ekta_aeo/ s_pooblascenega_gospodarskega_subj ekta_aeo/ AEO Benefits How to obtain AEO status Competent authority Application Self-assessment questionnaire Security declaration AEO documents AEO E-learning tool Useful links

B) SUBMISSION OF AEO APPLICATION AND NECESSARY SUPPORTING DOCUMENTS

AEO application In writing or in an electronic form Annex 1C CCIP Submitted to competent customs authorities

Annex 1C

Annexes Mandatory annexes listed in Annex 1C CCIP Filled in according to explanatory notes Information from mandatory annexes can be provided in the SAQ The AEO Self-Assessment questionnaire (SAQ) strongly recommended to be submitted together with the AEO application

List of annexes 1. Principal owners/shareholders/the members of the board of directors 2. The person responsible for customs matters 3. Description of the economic activities 4. Different location details 5. Specification if the goods are bought from and/or supplied to connected companies 6. Internal structure of the organisation 7. The number of the employees 8. The names of the key office-holders 9. The names and the position of persons with specific customs expertise 10. Agreement or disagreement with the publication of the AEO information in the AEO Database

C) VERIFICATION AND EVALUATION OF AEO APPLICATION AND NECESSARY SUPPORTING DOCUMENTS

AEO Application Process (source: AEO guidelines)

Conditions for acceptance of application 1. The application is at the right form and lodged at the competent authority 2. The applicant has not been convicted of a serious criminal offence linked to its economic activity or is subject to bankruptcy proceedings 3. The applicant has a legal representative in customs matters who has not been convicted of a serious criminal offence related to an infringement of customs rules and linked to his activity as legal representative 4. The application is not submitted within three years after revocation of the AEO certificate

Checking conditions for acceptance Quick check of the application and annexes Checking necessary information: accessing the relevant databases use of other available sources of information (e.g. common EU databases, contacts with other authorities, information from the company's web page …)

Additional information Customs can ask for additional information in 30 calendar days from the receipt of the application Customs set the deadline for submitting the additional information Without the additional information, the application cannot be processed further

D) ACCEPTANCE THE AEO APPLICATION AND THE AEO SELF-AUDIT QUESTIONNAIRE

Acceptance of the application Conditions for acceptance are met Acceptance Customs authorities must always inform the applicant about the acceptance of the application and the date of acceptance From a date of acceptance the time limits for issuing/rejecting the AEO start Conditions for acceptance are not met Non-acceptance Customs must inform the applicant about the reasons

The SAQ information The SAQ information cannot be used as a reason for non- acceptance except where the SAQ is used for submitting information from mandatory annexes

E) PROCESSING OF THE AEO APPLICATION AND NECESSARY SUPPORTING DOCUMENTS

Verification and analysis of AEO self-audit questionnaire (1) Basic tools used in (pre)audit: AEO guidelines AEO self audit questionnaire (strongly recommended) Threats, Risks and Possible solutions AEO compact model

Verification and analysis of AEO self-audit questionnaire (2) To take into account: The type of certificate that the company applies for The size of the company, legal status of company, structure, key business partners, specific economic activity The existing certificates, expert reports or any other conclusions from experts The national legislation and the data that can be collected by the customs

Verification and analysis of AEO self-audit questionnaire (3) SAQ structure: 1. Section 1: Company information 2. Section 2: Compliance record 3. Section 3: Accounting and logistical system 4. Section 4: Financial solvency 5. Section 5: Security and safety requirements

Amendment of AEO Application and AEO self-audit questionnaire Individual answers to questions should be considered as part of an overall assessment process The supporting documents can be made available together with the SAQ or at the applicant‘s premises The answers should be evaluated according to the possible threats and risks Unsatisfactory answers can be amended or checked during the audit

Example: SAQ ↔Threats and risks SAQ Subsection a) Describe briefly how the process of access to your premises (buildings, production areas, warehouses etc.) is regulated for staff, visitors, other persons, vehicles and goods? b) Who checks that the prescribed procedures are complied with? a) Describe the procedures that are to be followed if an unauthorized person/vehicle is discovered on company premises (grounds or buildings)? b) b) How are these procedures communicated to the staff (e.g. action plan, manual, working guidelines, training)? a) Present a site plan for each location of your company that are involved in customs related activities (e.g. layout plan, draft) from which the frontiers, access routes and the location of the buildings can be identified, if available) a) Name - if appropriate- the companies (e.g. outside companies, outsourced company parts) that are also located at the premises of each location. Risk description Subsection 4.2. „Unauthorized access or entry of vehicles, persons or goods to the premises and/or close to the loading and shipping area.“

Preparation for checks and audits 1. Check the unclear answers 2. Check of the reliability of the answers in the SAQ →Select a sample of answers to be checked 3. Check of the indicated documents and their content → Is the content of the document the right answer to the asked question/risk? 4. Check the risks that could be not sufficiently controlled according to the answers

F) CHECKS AND AUDITS OF THE AEO APPLICANT IN HIS PREMISES

An appropriate record of compliance with customs requirements List of questions Have any serious infringement or repeated infringements of customs rules been committed by any of the following persons over the last three years: (a) the applicant; (b) the persons in charge of the applicant company or exercising control over its management; (c) if applicable, the applicant's legal representative in customs matters; (d) the person responsible in the applicant company for customs matters. Documents to be submitted / Sources of information customs information system - infringements against customs rules Register of offence - criminal offences linked to the economic activity (for applicant company and legal representative of the company)

System of managing applicant’s records (1) List of questions Does the applicant maintain an accounting system which is consistent with the generally accepted accounting principles Does the applicant allow the customs authority physical or electronic access to its customs and, where appropriate, transport records; Does the applicant have a logistical system which distinguishes between Community and non-Community goods; Does the applicant have an administrative organisation which corresponds to the type and size of business and which is suitable for the management of the flow of goods, and have internal controls capable of detecting illegal or irregular transactions; Documents to be submitted / Sources of information Organizational documents Internal rules and routines

System of managing applicant’s records (2) List of questions Does the applicant have procedures in place for the handling of licenses and authorisations connected to commercial policy measures or to trade in agricultural products; Does the applicant have satisfactory procedures in place for the archiving of the company's records and information and for protection against the loss of information; Does the applicant ensure that employees are made aware of the need to inform the customs authorities whenever compliance difficulties are discovered and establish suitable contacts to inform the customs authorities of such occurrences; Does the applicant have appropriate information technology security measures in place to protect the applicant's computer system from unauthorised intrusion and to secure the applicant's documentation. Documents to be submitted / Sources of information Organizational documents Internal rules and routines

Financial solvency List of questions Does the applicant have a good financial standing which is sufficient to fulfil it´s commitments, with due regard to the characteristics of the type of the business activity? Documents to be submitted / Sources of information Annual business reports Official national database of business records and statistics Short liquidity ratio Opened obligations to the tax service Opened obligations to the customs service result from external audits

Security and safety (1) List of questions Risk assessment and safety procedures Goods which require specific security and safety measures? Security plan; Protection and rescue plan; House rules Firewall policy Internal organizational rules, which reflect the ADR: Transport of hazardous substances subscribers, safety measures in the transport of dangerous goods, loading and unloading of hazardous substances, ADR training, vehicle inspection form for the transport of dangerous goods, reminder for drivers in the transport of dangerous goods Documents to be submitted / Sources of information

Security and safety (2) List of questions Access to vehicles, persons and goods? Security of premises? Security and safety of cargo units? Incoming goods? Storage of goods? Production of goods? Loading of goods? Business partner security? Personnel security? External services? IT security Surveillance, motion sensors... Internal safety regulations (house rules, security plan, internal rules for handling in cases of unauthorized entry…) Description of the procedure for access to premises Contractual agreements „7 check point“ Stock records Results from previous customs controls Results from external controls Documents to be submitted / Sources of information

G) PROCESSING THE RESULTS OF CHECKS AND AUDITS OF THE AEO APPLICANT IN HIS PREMISES

AEO Report - Content follow the checked AEO criteria a clear picture of the economic operator a clear description of all checked criteria a clear description of identified risk areas a clear report of any action or reaction the AEO the clear recommendation about whether to grant the status or not according to the result of auditing activities complete and detailed justifications in case the status is not granted follow-up actions suggested to the AEO recommendations for monitoring and/or reassessment

AEO Documentation Recommendations: Ordinary documentation: application, SAQ, formal communication, report, control list, decision, monitoring plan,.. The findings should be appointed to each section of the guidelines or SAQ The content of the report should follow the content of the guidelines and SAQ The documentation should be collected and kept in the electronic way The documentation should be collected according to the structure (sections) of Guidelines and SAQ Formal communication between customs and the applicant should be kept (notifications,…)

(H) FINALISATION OF THE AEO APPLICATION PROCESS

Issuing the final decision Time limits: 120 calendar days / possible 60 days extension Recommendation: Presentation of the audit results to the „commission“ – getting consent for issuing the AEO Identification of insufficiently managed risks Preparation of the monitoring plan The event of granting the certificate to the EO

Granting the AEO certificate

2. SUSPENSION OF THE AEO CERTIFICATE - PROCESS OF TEMPORARY SUSPENSION OF AEO CERTIFICATE VALIDITY 24 September 2014

(A) RE-ASSESSMENT PROCESS

Suspension The AEO certificate is not valid during a specific period The holder does not have access to the benefits of the status

Reasons for suspension Non-compliance with the conditions or criteria for the AEO Infringement of the customs rules Not in case of negligible importance Also upon request of the AEO

(B) NOTIFICATION ABOUT NON-COMPLIANCE OF THE CONDITIONS

Right to be heard Before taking a suspension decision, the customs authorities shall communicate their findings to the AEO holder The AEO can correct/comment the situation in 30 calendar days from the date of communication. The immediate effect of suspension in case of threat to citizens’ security and safety, to public health or to the environment

Suspension process If the holder of the AEO certificate does not regularize the situation within the period of 30 calendar days the status is suspended for 30 calendar days Possibility of extension for additional 30 days In case of court proceeding the status is suspended for the duration of the court proceedings Possible partial suspension in case of AEO F

Legal effects of the suspension The suspension shall not affect already started customs procedure The suspension shall not automatically affect any authorisation which has been granted without reference to the AEO certificate unless the reasons for the suspension also have relevance for that authorisation. The suspension shall not automatically affect any authorisation for use of a customs simplification which has been granted on the basis of the AEO certificate and for which the conditions are still fulfilled.

Withdrawal of the suspension When the economic operator take the necessary measures to regulate the situation the suspension is withdrawn

(C) DECISION CONCERNING THE REVOCATION OF THE AEO CERTIFICATE

Revocation If the economic operator fails to take the necessary measures within the suspension period the AEO certificate is revoked A written decision by the issuing authority

3. PROCESS OF WITHDRAWAL OF AEO CERTIFICATE 24 September 2014

(A) RE-ASSESSMENT PROCESS NOTIFICATION ABOUT NON-COMPLIANCE OF THE CONDITIONS

Revocation of the AEO certificate Where serious infringements related to customs rules have been committed by the AEO and there is no further right of appeal Where the AEO fails to take the necessary measures during the suspension period referred to in Article 14t/2 Right to be heared is assured during the suspension process Possible also upon request of the AEO Not in cases of negligible importance

(B) APPEAL PROCEDURE AGAINST THE DECISION ON REVOCATION OF THE AEO CERTIFICATE

Appeal procedure Defined in the national legislation concerning administrative procedures The decision is preceded by a report including findings and clearly expressed reasons for the revocation The applicant has 30 days to explain his point of view The decision is issued The applicant can appeal against the procedure in 15 days