AEO PROGRAMME OFFICE AEO
Frequently Asked The Customs and Border Control Department initiated the Authorized Economic Operator (AEO) Programme in 2008 under its Reforms and Modernization process. The Programme embedded in the second pillar of the WCO SAFE Framework of Standards (Customs to Business) and is the 4th building block of 21st century Customs. What is an AEO? A party involved in international movement of goods in whatever function that has been approved by or on behalf of KRA Customs as complying with WCO or equivalent supply chain security standards. Who can be an AEO? Manufacturers, importers, exporters, clearing agents, carriers/ transporters, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses operators and distributors. Why Implement AEO? Enhance the relationship between Customs and its compliant stakeholders Fulfil the WCO SAFE framework of standards Fulfil the global best practice of granting special authorisation and other privileges to reliable & compliant economic operators
What is the Aim? To give preferential treatment to operators (while dealing with their transactions) who have over a period of time proven to be reliable and compliant traders/partners of the Customs and Border Control Department. Frequently Asked What is Preferential Treatment? Exclusive privileges that are accorded to a select few who have met set requirements. They include: Self assessment and audit based controls Expedited Customs procedures (Blue channeling of entries in SIMBA) Client relationship management Self management Benefits of the Programme TO THE AEO: Expedited cargo release due to minimal checks at the frontier office Lower storage costs due to faster release of cargo Improved partnership & mutual trust First consideration for participation in consultative programmes TO CUSTOMS: Expedited cargo release Increased compliance levels Reduce backlogs Improve partnership Reduced need for costly enforcement measures
Categories of AEOs National AEO - the benefits are limited to the jurisdiction of Kenya East African Regional AEO - this is a more comprehensive programme since its members are mutually recognized by the East African Community Partner States. They enjoy AEO status in those partner states Frequently Asked Joining the AEO Programme Any operator willing to join the programme shall be required to fill and submit an application form which will be available on the KRA website or issued by the AEO office Once an application is received, the applicant will be subjected to selection criteria alongside a risk mapping process Only operators who satisfy the minimum selection criteria will be accredited to the AEO programme THE AEO SELECTION CRITERIA Demonstrated compliance - must have no query with any KRA Department for a given period Satisfactory system for management of commercial records - maintain timely, accurate, complete and verifiable records Financial viability - have a good financial standing sufficient to fulfil its commitments Consultation, co-operation and communication - have a mutual working relationship with Customs Education training and awareness - should keep staff informed of the changes in legislation, customs procedures and other government regulations
Information exchange, access and confidentiality - be able to secure sensitive information and protect entrusted information from misuse by unauthorized persons Security and safety requirements - ensure security of cargo, premises, personnel and means of conveyance Continuous improvement RESPONSIBILITIES OF AN AEO The AEO shall be required to: Maintain high compliance levels of all customs laws and other government regulations at all times Communicate to AEO unit all changes that may affect the AEO s status Frequently Asked Security and safety requirements - ensure security of cargo, premises, personnel and means of conveyance
Frequently Asked Any operator willing to join the programme shall be required to fill and submit an application form which will be available on the KRA website or issued by the AEO office
Frequently Asked PENALTIES FOR NON-COMPLIANCE Suspension from the programme Withdrawal of the certificate Increased customs controls Authorised Economic Operator AEO THE FAST CLASS EXPERIENCE ISO 9001:2008 CERTIFIED For any enquiries please contact Kenya Revenue Authority Times Towers, 10 th Floor P.O. Box 40160 00200, NAIROBI Tel no: (20) 2812073 Email: AEOTeam@kra.go.ke Website: www.kra.go.ke
Tulipe Ushuru, Tujitegemee! Times Tower Building, Haile Selassie Avenue P.O. Box 48240-00100 Nairobi - Kenya www.kra.go.ke +254 204 999 999 +254 711 099 999 callcentre@kra.go.ke