AUTHORIZED ECONOMIC OPERATOR. How to deal with it? 2 nd WCO Global AEO Conference Madrid, April 29 th 2014

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1 AUTHORIZED ECONOMIC OPERATOR How to deal with it? 2 nd WCO Global AEO Conference Madrid, April 29 th

AN INDEPENDENT COMPANY Alis International, for consulting, customs engineering, management of integrated logistics solutions and 4PL Qualitair&Sea, for international freight

2 AN INDEPENDENT COMPANY Alis International, for consulting, customs engineering, management of integrated logistics solutions and 4PL Qualitair&Sea, for international freight forwarding Setcargo, for French overseas freight forwarding Engineering &consulting Logistiqs Airfreight Seafreight Company profile: Turnover: 150 M EUR Staff: 450 Branches: 25 2

3 OUR AEO EXPERIENCE Qualitair&Sea was designated pilot by French in 2007 in order to implement the AEO certification process, and among the first French freight forwarders to be certified AEO in Alis International was presented by French to Japanese en 2010 for Japan / EU bilateral recognization and then to Turkish in 2013 for the same topics. Alis International is specialist in freight forwarders/handling agents/shippers AEO certification and have been already working for some big companies : ID Logistics, WFS 3

CUSTOMS, SECURITY AND BUSINESS STRATEGY Maturity level of customs and safety/security organization Administrative Function No specific customs procedures and authorizations in place.

4 CUSTOMS, SECURITY AND BUSINESS STRATEGY Maturity level of customs and safety/security organization Administrative Function No specific customs procedures and authorizations in place. No security process implemented (leads to high insurance costs). No strategy Transactions managed by different customs broker No cost control (customs costs, suppliers costs) Control of customs flows strategy defined Safety/security basic procedures (account customer, ICAO regulated agent ) Simplified procedures in place, specific authorizations negotiated with customs Operationnal processes in place dashboard in place Page Profit Center strategy aligned with Supply Chain strategy Deep security procedures, costs/profit analysis (RA, KC, EAO ) Centralized clearance procedures in place Management of economic regimes Organization with measure of performance Development under mode project and methodoligy adapted to products flows and product families ROI steering Clear and shared strategy within the company, with all Directions function initiating the change Security process involved in all decisions. Methodologies are acquired and improved. Objectives and KPI refect the strategy Upstream involvment of the function with the Purchases department. In sourcing policy. used as competitive advantage Efficient use of the IT system. Interface of invoicing and logistic systems.

5 Reduce and optimize direct and indirect costs CUSTOMS, SECURITY AND BUSINESS AEO status Towards better control costs + OEA FULL Have a structured, efficient and safe activity in place Reduce disputes, duplicates, Rationalization of IT systems Contractual compliance + Control by audits all of the activity Control by audits all of the activity Reduce unpaid bills, doubtfull suppliers and clients, dysfunctions Commitment off all company staff + Control and distribute processes and procédures Control and distribute processes and procédures Control and distribute processes and procédures Reduce loss of information, time and energy + Control security/safety aspects Control security/safety aspects Control security/safety aspects Control security/safety aspects Reduce thefts, losses, breaks, damages, risks of accident at work Security compliance Reduce fines / controls Remove guarantees Dematerialization obligations and respect security-safety rules Page - 5 5

6 CUSTOMS, SECURITY AND BUSINESS AEO status marketing benefits Initially, as a few freights forwarders were certified, AEO certification was used in a very positive way for marketing differentiation. Now that many operators are certified, not being AEO is clearly a strong disadvantage in terms of marketing. Being AEO shows urbi et orbi a full compliance with high level international security and customs standards. A compliance all the more efficient that it is made by customs administration 6

7 CUSTOMS, SECURITY AND BUSINESS AEO status how to go further? Many customers are now requiring their service provider to be strictly compliant with security regulations: being AEO is a good way to show this compliance. Is it sufficient? Facilitations require the AEO certification of all the supply chain, from the shipper to the airline/sealine. Unfortunately a few shippers are certified, some big airlines are not certified and it is therefore difficult to consider a whole certified supply chain. Especially small trucking companies : French customs and French operators decided to launch an EAO certification package 7

8 CUSTOMS, SECURITY AND BUSINESS AEO status why harmonizing? is more or less harmonized among 27 EU members. But : not clear that all the advantages are harmonized. To harmonize AEO & Regulated Agent (RE 300/2008) regulations. To implement EU/USA bilateral recognition between AEO and C- TPAT. No operational advantage at the present time. To develop a worldwide multilateral recognition process, through WCO : each country having its own AEO process and its own ICS/ECS process leads to administrative burden and to duplication of all process : ECS in the departure country should be ICS in the arrival country. 8

9 THANK YOU FOR YOUR ATTENTION 9

Maritime Security in Logistics From Japanese Shippers point of View

Maritime Security in Logistics From Japanese Shippers point of View Koji Hashimoto JMC (Japan Machinery Center for Trade and Investment) September 29 th, 2011 1 Production Network (A representative case