AO/IB - Essential for Obtaining a Heavy Customs License

In recent years, Customs authorities have been striving to optimize their operational efficiency. While Customs still conducts regular checks on the eligibility criteria for specific authorizations, there has been a growing trend to involve the business community in the initial audit process. This approach aligns with the principles of Authorized Economic Operator (AEO) certification. Customs, in turn, ensures that businesses have effective control mechanisms in place or advises them on necessary steps to achieve compliance.

The Importance of Administrative Organization/Internal Control

To obtain an AEO license (as well as other significant licenses), Customs requires an Administrative Organization/Internal Control (AO/IB) document. Many companies may not have a clear understanding of this requirement or know how to proceed. Essentially, the AO/IB is a comprehensive description of the company's customs-related processes, serving as a document that outlines all work instructions and crucial control processes. It impacts various departments, including HR, Finance, Customs, and Supply Chain, all of which must collaborate to complete the document. Customs utilizes the AO/IB as a benchmark and conducts periodic assessments to ensure that the company complies with its obligations as outlined in the document.

Providing Support

In practice, we often observe that a responsible individual within the Finance team or another department is tasked with preparing the AO/IB document. Considering the logistics workload and the limited customs knowledge within many organizations, it is understandable that this can be challenging. That's why we offer regular support, providing structured assistance and guidance.

If your organization is in the process of applying for a customs license, we are here to help you. Together we will assess whether an AO/IB could be a suitable solution for you. We are fully prepared to be your partner throughout this whole process.

01 Jun 2023 at 10:25 am
3 min
Published by:
Steven Sewberath Misser
Sr. Customs Specialist
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