Authorised Economic Operator (AEO) status, also known as ‘trusted trader’ status, can be of great assistance to Irish businesses in managing their customs compliance obligations. As Brexit approaches, customs issues are taking on a wider significance for Irish businesses. Seeking AEO status is a potential option for businesses to reduce the impact of Brexit where they have significant trade volumes with the UK.
In this article, Glenn Reynolds and Fionn Uibh Eachach of KPMG’s Indirect Tax team, consider how AEO status can assist Irish businesses in managing their customs compliance obligations.
In particular, Glenn and Fionn discuss the advantages of AEO status in terms of reducing the non-tariff costs of trade with non-EU countries. This includes reduced paperwork associated with the importation of goods from non-EU countries and reduced customs checks and time waiting at customs borders. These can be of vital importance to businesses importing perishable goods or with Just-In-Time supply chains.
Fionn and Glenn also look at both the conditions associated with obtaining AEO accreditation and the application process from an Irish perspective.