About the Program

The Authorized Economic Operator program is a voluntary program for global supply chain security and trade facilitation. The program is based on the SAFE Framework of Standards of the World Customs Organization adopted by Israel Customs Directorate in 2005. As part of the program, unified standards for the security, compliance and financial viability of the global supply chain were introduced. The program is operated by the customs and it is based on voluntary participation. That is, companies that are willing to adopt the framework of standards, contribute to the security of the supply chain and trade facilitation. These companies will benefit the facilitation in Israel's foreign trade and in other countries that Israel will sign a mutual agreement with.

The Goals of Authorized Economic Operator Program:

1. To establish unified standards that enhance the supply chain security and facilitation at a global level in order to promote certainty and predictability
2. To enable integrated supply chain management for all modes of transport.
3. To enhance the role, functions and capabilities of Customs in order to meet the challenges and opportunities of the 21st Century.
4. To strengthen cooperation between Customs administrations and to improve their capabilities.
5. To detect high-risk consignments and promote the seamless movement of goods through secure international trade supply chains.
6. To strengthen the Customs-Business cooperation.

The program is open for all participants of supply chain (manufacturer, warehouse, retailer, distributer, broker, importer, port operator, and others).

What is an Authorized Economic Operator?

Authorized Economic Operator is a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards. Authorized Economic Operators include, inter alia, manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors.
As a result, Customs authority grants benefits to the operators in program during international trade.

Program Principles

• Customs-Customs network agreements
• Customs-Business partnership

Mutual Recognition Agreements

An important component in supply chain security programs is the mutual recognition based on unified criteria. Customs administrations that sign mutual recognition agreements acknowledge each other's approvals in various programs what reduces the need for security and customs examinations. This will facilitate global trade.
Optimal benefits from the various programs would be achieved by creating a widespread global network of mutual recognition agreements between customs administrations.
Benefits

Authorized economic operators who meet the various standards and implement required security measures would enjoy better efficiency of their supply chain management, reduced theft and, according to some researches, even increase the net profit. In addition, customs will grant the approved operators the following benefits:

• Reduced probability for examinations
• Easier examinations (import/export)
• Pre-clearance (documents examination before arrival of goods)
• Paperless procedures
• A.E.O point of contact

Benefits to come -

• Authorized exporter will be granted with benefits at the destination country by local customs (after signing mutual recognition agreement)
• The possibility to conduct the examination at the Operator's premises will be considered
• Priority in treatment during recovery from crisis

Certification Procedure

1. An operator applying to the program should fill in an application form, attach the required documents and send all the information to customs/AEO.
2. The applying operator will be examined by customs for different criteria, such as:
    a. Compliance with tax and foreign trade laws
    b. Financial viability
    c. Satisfactory system for management of commercial records
    d. Crisis/Disaster recovery documented procedures
   
3. If the applicant meets the requirements of section 2, the request will be forwarded to the security department for a security evaluation:
    a. The applicant will fill out a security questionnaire (access to the on-line form is with a smart card and a password)
    b. After filling out the security questionnaire, an on-site inspection will be coordinated by customs representatives.
4. A decision (either approval or rejection) will be notified by customs up to 60 days from inspection:
    a. An approval notification for the program will be sent by customs administration to the authorized economic operator.
    b. The validity of certification is for one year, in which inspections are possible by customs.
    c. By the end of this year, a re-examination will be carried out by customs. The decision of prolonging the certification or halting it will be notified to the A.E.O.
    d. Customs administration has the right to suspend an operator from the program, when an operator fails to observe the requirements.

Security Criteria

Below are the security criteria as determined by WCO SAFE framework of standards:

• Security awareness
• Information security
• Cargo security
• Transportation security
• Physical security (buildings and the like)
• Employees security
• Trade partners security

F.A.Q

Q: How much does it cost to participate in the A.E.O program?
A: Participation in A.E.O program is free of charge.

Q: What is a smart card and what do I do with it?
A: The smart card is an Identification card issued by certified companies (www.personalid.co.il, www.comsign.co.il" ) in order to identify the holder with a digital approved signature for Customs and other government offices. It is required to fill out the security questionnaire and to sign it. For more information - http://www.gov.il/FirstGov/smartCard/business/businessStart

Q: Can I consult the Customs security officers while completing the security questionnaire, and how?
A: As part of the program policy, at every stage of the security questionnaire, it is possible and encouraged, to contact the security officers of the program, who accompany the applicants. For questions regarding the program's security issues - see "contact us".

Q: which countries implement a mutual recognition agreement?
A: There are 11 mutual agreements worldwide at the moment: USA-CANADA, USA-NEW ZILAND, USA-JAPAN, USA-JORDAN, USA- S. KOREA, JAPAN-NEW ZILAND, JAPAN-E.U, JAPAN-CANADA, CANADA-SOUTH KOREA, CANADA-SINGAPORE, SOUTH KOREA- SINGAPORE.

CONTACT US

Management:
Mail: aeohq@customs.mof.gov.il
Phone: 08-8510827/8
Fax: 02-6668790/65

Security:
Mail: aeosec@customs.mof.gov.il
Phone: 03-7267761/4
Fax: 02-6669932/3