AEO certification – necessity or privilege for supply chain participants

Abstract

Purpose This study aims to investigate the motives for and the benefits of authorized economic operator (AEO) certification in the supply chain. Also, whether there are significant differences in the perception of the AEO status as a necessity or privilege among cargo owners and service providers. Design/methodology/approach The research design includes an international survey of 159 AEO-certified companies from four European Union (EU) countries performing various roles in the supply chain. The data are analyzed using quantitative methods, including factor analysis and analysis of variance. Findings Based on factor analysis, the research reveals the motives for and benefits of AEO certification. This reveals significant differences between two distinct groups of supply chain participants, namely, cargo owners and service providers. Service providers are mainly driven by the need to gain or maintain their competitive advantage and treat AEO certification as a standard that is required by customers. Cargo owners are relatively more focused on the improvement of internal processes and treat AEO certification as a privilege that helps them achieve a high level of efficiency. Originality/value The study fills the existing literature gap as it focuses on the differences between two distinct groups (cargo owners and service providers) in terms of their perception of the AEO certification. As empirical research in this area is scarce, especially at the cross-country level, this study also significantly complements knowledge on AEO certification in the EU.

Ventajas del Operador Económico Autorizado (OEA) a nivel internacional y oportunidades de enseñanza en programas de logística y negocios internacionales

“…En la literatura se encuentran diversos estudios acerca de cooperación aduanera y comercial, los cuales hacen énfasis en aspectos teóricos sobre el funcionamiento del OEA y C-TPAT (Dong et al, 2018;Grottel, 2015;Jażdżewska-Gutta et al, 2020;Schramm, 2015). Los análisis producto de estos estudios sirven de soporte teórico para entender el concepto de certificaciones como OEA; sin embargo, no se enfocan en la importancia de esta en un ámbito educativo.…”

Application of Internet of Things in the Movement of Goods at Customs Level during Covid-19 Pandemic

“…Before specifically focusing on this issue, it is useful to recall some of the most efficient tools proposed and adopted by the World Customs Organization (WCO) Council in the last 20 years to reach velocity and safety in international trade: (i) SAFE Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) in 2005 and (ii) the Authorized Economic Operators (AEO) Program in 2007. The SAFE Framework is a non-binding unique international instrument that ushered in the supply chain which comprised technical security customs standards without obstructing international trade and creating a closer partnership between customs and business operators [4,5], while the AEO is a voluntary certification that allows traders who meet certain criteria to assure the supply chain security and then to enjoy customs benefits throughout the European Union [6,7]. Although, the SAFE Framework has proved to work well, in 2021 the WCO undertook a revision of it aiming at "strengthen[ing] co-operation between Customs and Other Government Agencies; promot [ing] smart security devices to optimize Customs control and effectively monitor the movement of goods in a real-time basis; and, includ [ing] baseline provisions on the development of regional Customs union AEO programmes and the implementation of mutual recognition" [8].…”

The Effect of the Exclusion of the Authorized Economic Operator for Customs Brokers in Brazil

“…The latter have a key role in customs clearance. According to Jażdżewska-Gutta, Grottel & Wach (2020), service providers are mainly driven to focus in gaining or maintaining their competitive advantage, and the AEO certification act as a positive quality aspect observed by customers, due to the predictability of the flow of goods for cross-borders operations.…”