Authorised economic operator
Also called: AEO · Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT
Meaning
An authorised economic operator (AEO) is a trader certified by customs as trustworthy because it meets set security and compliance standards. Certified traders get faster, simpler customs clearance, with fewer checks and less paperwork. The idea is trade facilitation, which means cutting the time and cost of trade. Customs can then focus checks on riskier shipments.
Example
India's AEO programme is one of its trade facilitation measures. Others include the SWIFT single window, the ICEGATE portal and faceless assessment (2020). An AEO-certified Indian exporter's cargo moves through customs faster than that of an uncertified firm. This fits with the WTO Trade Facilitation Agreement, concluded at Bali in 2013 and in force from 22 February 2017.
Related concepts
- Non-tariff barriers
- Import quota
- Quantitative restrictions
- Import licensing
- Voluntary export restraint
- Sanitary and phytosanitary measures
- Technical barriers to trade
- Quality control order
- Trade facilitation