Yesterday, European Community Member States approved, by an overwhelming majority, the implementing provisions for the Security Amendment to the Customs Code. These regulations are notable for introducing the Authorised Economic Operator (AEO) concept to the EU with authorisations commencing on 1 January 2008.
However, SITPRO remains concerned that greater emphasis has been placed on getting this legislation through than on getting it right. The aim of AEOs is to secure the international supply chain from use as a vehicle for terrorist activity. Yet SITPRO understands that, prior to the successful vote, the Commission had to offer reassurances that they would review a number of key issues, including:
- the benefits provided to AEOs under the scheme which are very limited;
- the establishment of a database to enable the identification of AEOs by Customs authorities and those who want to trade with them;
- implementation of the Risk Management Framework which an important precursor to the introduction of AEOs;
- the data set for summary declarations which will be tested by pilot studies; and
- the mandatory requirement to include within the data set the HS codes for the products in the consignment where a working party is to be set up to review the feasibility and assess the impact.
SITPRO is also concerned that some of the detail of aspects of the authorisation criteria have been left to non-binding guidance (e.g. how solvency should be demonstrated) risking divergent implementation in different member states.
SITPRO will continue to monitor developments closely with the aim of ensuring that business interests are taken fully into account by the European Commission and Member States Customs authorities.
For further information contact SITPRO’s Director of Policy, Graham Bartlett, on 020 7215 8068 or graham.bartlett@sitpro.org.uk 
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Notes to Editors
Regulation 1250/2006 (version Rev 7 Corr 1): the implementing provisions for the Security Amendment to the Customs Code (Council Regulation 648/2005) was approved by European Community Member States on Monday 23 October 2006. The text of the regulation can be found at http://ec.europa.eu/taxation_customs/resources/documents/customs/
policy_issues/customs_security/doc1250-rev5_en.pdf (Link to an external site - Disclaimer 
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SITPRO News Release - 24 October 2006
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