Mutual recognition of Authorised Economic Operators and security measures

Abstract

For several years, customs administrations and international organisations like the World Customs Organization (WCO) have considered and promoted the idea and objective of achieving mutual recognition of Authorised Economic Operators (AEO) and security measures. The WCO SAFE Framework of Standards to Secure and Facilitate Global Trade encourages customs administrations to agree on the mutual recognition of AEO and security measures to enhance security of international supply chains while providing increased facilitation for secure and reliable economic operators. A number of AEO mutual recognition arrangements and agreements have been concluded or are being negotiated among customs administrations that have sufficient trust in each others' audit, control and authorisation procedures. This paper identifies some features as well as challenges of mutual recognition and aims to provide some clarification as to what different customs administrations understand under the term of 'mutual recognition'.