1. The Security Conditions of the Authorised Economic Operator
Thomas Nietsch
Chairman
IFCBA
CAAAREM Congress, Los Cabos

2. CAAAREM Congress, Los Cabos
The Agenda
The reason: 11th September 2001
Changes of the viewpoints
One-sided steps by the USA
The WCO concept
CAAAREM Congress, Los Cabos

3. CAAAREM Congress, Los Cabos
Phrases
Authorised Economic Operator = AEO
Authorised Supply Chain
C-TPAT = Customs – Trade Partnership Against Terrorism
CSI = Container Security Initiative
WCO = World Customs Organisation
CAAAREM Congress, Los Cabos

4. CAAAREM Congress, Los Cabos
The Beginning
11th September 2001
After the first shock: Customs has an increased role in the defence of the society
The first step: closing the border crossings between the USA – Canada, physical cargo and person control
CAAAREM Congress, Los Cabos

5. Changing the Viewpoints
The next possible terror attack in a closed container
What was controlled till 2001 (and as well as today)?
The control of the import is too late
The control of the export -> pushing the borders out
It is uncertain to find the terrorists
Instead of it try to find the „good guys”
How to find the needle in a haycock?
CAAAREM Congress, Los Cabos

6. CAAAREM Congress, Los Cabos
The USA did not Wait …
The pushing of the borders out to overseas: CSI
The first port was Rotterdam
Today the number of these ports are over 40
The USA traffic of the non-participating ports is over
Screening of the containers before loading to the ship
USA customs officers
Sea transport, air transport, transport of cargo and persons
Pre-advice, USA acceptance
CAAAREM Congress, Los Cabos

7. CAAAREM Congress, Los Cabos
WCO
The concept of the Authorised Economic Operator
June 2005 SAFE Framework of Standards to Secure and Facilitate Global Trade
Two sides of the same coin: security and trade facilitation
More than 20 countries signed readiness to start immediate implementation
AEO basic ideas:
Preliminary security audit
International recognition
Authorised Supply Chain
Pre-advices, preliminary risk management
Trade facilitation, tangible, documented, meaningful, measurable and reportable benefits
CAAAREM Congress, Los Cabos

8. CAAAREM Congress, Los Cabos
WCO AEO Conditions
Demonstrated compliance with Customs requirements
Satisfactory system for management of commercial records
To give Customs full access to necessary record
Adequate information technology security
Financial viability
Consultation, co-operation and communication
To notify Customs of any unusual, illegal or suspicious shipments
Education, training and awareness
Education of personnel and trading partners on security issues
CAAAREM Congress, Los Cabos

9. CAAAREM Congress, Los Cabos
WCO AEO Conditions
Information exchange, access and confidentiality
Protection against unauthorised access and loss of information
Cargo security
To ensure the integrity of cargo
Proper sealing
Secure storage of cargo and transport means
Verifying the carriers
Conveyance security
CAAAREM Congress, Los Cabos

10. CAAAREM Congress, Los Cabos
WCO AEO Conditions
Premises security
Adequate lighting
Controlled entrance and exit of both persons and vehicles
Access to document and cargo storage only for authorised personnel
Personnel security
Verifying staff when recruiting and then periodically
Trading partner security
Crisis management and incident recovery
Measurement, analyses and improvement
CAAAREM Congress, Los Cabos

11. CAAAREM Congress, Los Cabos
WCO AEO Benefits
Expedite release of cargo
Reduced data set for that
Minimum number of cargo security inspections
„… cargo flow of an AEO should be stopped by Customs only exceptionally, due to risk management reasons”
Priority use of non-intrusive inspection techniques, if required
Access to a portal with the list of AEO-s
Priority processing of AEO shipments by Customs following the closing and re-opening of borders and ports
First consideration of simplified procedures for AEO-s
Account based processing instead of transaction by transaction clearance
WCO AEO Benefit
CAAAREM Congress, Los Cabos

12. CAAAREM Congress, Los Cabos
Summarising
The C-TPAT system (USA) has been operating for years
A C-TPAT importer must consider the exporter for security aspects
WCO tries to follow the USA
Implementing the AEO system within a short time
Preparations, investments
CAAAREM Congress, Los Cabos

13. CAAAREM Congress, Los Cabos
Further Information
CAAAREM Congress, Los Cabos

14. CAAAREM Congress, Los Cabos
THANK YOU!
CAAAREM Congress, Los Cabos