Ireland has an open Economy with global trade, the market depends on the seamless flow of exports and imports. Having a supply chain with AEO status is going to be critical for all Irish importers and exporters going forward.
In 2006, the EU enacted legislation to amend the customs and excise regulations across all 27 member states which requires that those engaged in cross-border trade (“economic operators”) submit pre-arrival and pre-departure information electronically on goods entering or leaving the EU. Failure to comply with the correct submission of etrade data will lead to delays in the movement of goods. The new rules were enforced in July 2009 and will be mandatory EU-wide from 1st January 2011.
As part of the legislation, the EU created the concept of an Authorised Economic Operator (AEO) to enable those companies with compliant practices and systems to be easily identified and facilitated in the new security framework. The introduction of AEO status is the EU’s response to the need to secure international supply chains and follows similar moves in the US where companies must comply with the Customs-Trade Partnership against Terrorism (C-TPAT). The World Customs Organisation (WCO), which represents Customs from 174 member countries, has been a major driving force behind these developments which are part of a global paradigm shift to paper-free trade.
The aim of AEO is to provide a company with an internationally recognized quality mark which indicates that its role in the international supply chain is secure and that its customs controls and procedures are compliant.
An AEO certified freight forwarder receives a low security risk rating; thereby opening up what is effectively a “Fast Lane” for its shipments. Even if a shipment is randomly selected for Customs inspection, the AEO freight forwarder will be given priority over non-AEO forwarders and clearance agents.
Additional benefits include Guarantee Waivers, Simplified Customs Declarations and Mutual Recognition of AEO status by major non-EU Customs Authorities. Also, AEO Certification will become the global “Quality Mark” for supply chain security. “AEO is a Government-led audit of our financial well-being, security and customs compliance.
ICS (Import Control System)
The new customs regulations regarding the pre-arrival filing provisions effective 1st January 2011 for all EU-bound cargo on aircraft or vessels
ICS (Import Control System) is the electronic security declaration system for the importation of goods into the European Union.
Air and Ocean Carriers are responsible for transmitting an Entry Summary Declaration (ENS) to the first EU Customs entry point within the following time limits:
- Long haul flights (more than 4 hours) = 4 hours prior to arrival at the first EU- Airport
- Short haul flights (less than 4 hours) = latest actual take-off
- Deep sea container transport= 24 hours before loading
- Short sea container transport = 2 hours before arrival at the first EU port
- Bulk and break bulk = 4 hours before arrival at the first EU port
For Air freight, applies for all cargo import to and transit through an EU airport.
For Ocean freight, this applies to all cargo discharged in an EU port (including transhipments) as well as for foreign cargo remaining on board (FROB).
Air / Ocean carriers will transmit one single ENS per Master Air waybill / Bill of Lading. Upon receipt, a risk assessment is applied on the ENS data. Identified risks are structured as follows:
Risk Type A: Do not load (applies for deep sea container traffic only)
Risk Type B: Examination of the shipment at the first point of entry
Risk Type C: Examination of the shipment at the port of discharge
To ensure that the ENS is filed in due time, air carriers will require complete shipment data prior to loading.
For ocean, the carriers will require complete shipment data 48-72 hours prior to loading.