Tuesday, June 20, 2017

Logistics Outfit Says AEO Status Essential for Freight Forwarders and Shippers Alike

Brexit Means Authorised Economic Status More Important Than Ever
Shipping News Feature
UK – The Chartered Institute of Logistics and Transport (CILT) is encouraging all companies involved in the supply chain, including both shippers and freight forwarders, to become an Authorised Economic Operator (AEO), in order to help them operate in Europe post-Brexit. AEO status is an internationally recognised quality mark indicating that an organisations customs controls and procedures are efficient and compliant. In May 2017 only 568 companies in the UK held AEO status and CILT is championing AEO certification to aid its members to gain competitive advantage, recognition for professional competence and trouble free border crossings.

CILT states that it has noted a rise in the question ‘Do you hold AEO status?’ being on the list for preferred supplier listing and tenders. The Institute is now urging Government and the profession to wake up to the advantage of being an AEO. Kevin Richardson FCILT, Chief Executive, CILT, said:

“It is an absolute necessity that companies throughout Britain’s supply chain start to adapt to become Authorised Economic Operators. AEO status is crucial to achieving the smooth transition of borders to market when we leave the European Union. The Authorised Economic Operators we have operating in the United Kingdom, will help ensure a successful Brexit and beyond.

“The focus of CILT’s position on behalf of members to the UK Government is very much about keeping trade flowing across our borders post-Brexit. We believe that AEO status should give companies that have demonstrated their commitment to security in the supply chain, access to what would, in effect, be a green lane through UK ports and airports.

“Holding AEO status is going to be key to experiencing the frictionless border that industry wants and needs post-Brexit. Only AEOs will be trusted to be self-policing and sufficiently knowledgeable to be granted such ease of movement. Non-AEOs will undoubtedly get left behind and disadvantaged.”

The route to becoming an AEO certified operator is an extensive and detailed process, with approximately 95% of AEO applications failing. Those who remember life before the Common Market know just how important it will be to ensure every advantage must be taken to smooth the path for future import and export traffic and AEO status means one hurdle removed. Susan Morley FCILT, ‎Director, Morley Consulting Training Limited, and Chair, Customs and International Trade Compliance Forum, CILT, added:

“The application process takes months not weeks and companies need to prepare prior to submitting their applications. Now is the time to get started.”