Authorized Economic Operator (AEO) Advisory Group

The establishment of advisory groups is a sign of maturity in terms of their potential to change the course of world trade. Although such structures are not common worldwide, they do exist in some countries and regions.Looking at the number of Authorized Economic Operators (AEO) worldwide, the EU is seen to be the most transparent region with the highest number. The EU is also among the regions that publish data on AEO companies most frequently. There are over twenty-five thousand AEO-certified companies in the EU. According to official statements by the EU Commission, approximately 70% of the EU's total foreign trade volume is carried out by AEO-certified companies.

In the United States, C-TPAT (Customs-Trade Partnership Against Terrorism), a program very similar to AEO, is one of the most important examples of trade facilitation, with over twelve thousand certified participants.

C-TPAT participants are divided into three tiers: Tier 1, Tier 2, and Tier 3. Importers, customs brokers, freight forwarders, air, sea, and land carriers, contracted logistics providers, and other entities in the international supply chain and intermodal transportation system are part of the system. The system features various consultation mechanisms where over twelve thousand registered companies are represented and meet with official institutions.

Let's also provide details on the main countries and regions where the Advisory Group model is actively used or where similar structures exist.

The EU is the region where this concept is most advanced and well-structured. Within this structure, the European Commission has an AEO Consultative Group, which includes customs experts and private sector representatives from all EU member states. This group can provide advices directly on AEO policies, practices, and regulations.

Despite leaving the EU, the UK has maintained the AEO system and consultation mechanisms. Within its structure, HMRC (His Majesty’s Revenue and Customs) regularly consults with AEO title holders and trade associations. Although there is no official “AEO Advisory Group,” the same function is performed through “Trade Advisory Groups.”

In Saudi Arabia, ZATCA offers this benefit to AEO-certified companies. While the official benefits of the “Authorized Economic Operator Advisory Group Membership” program are listed separately, it also establishes a direct communication channel between ZATCA and leading AEO-certified companies. Periodically; opinions, suggestions, and requests are forwarded.

South Korea has a well-developed AEO program and places importance on private sector participation. The Korea Customs Service (KCS) holds regular meetings with AEOs and other stakeholders and has developed close cooperation with civil society organizations such as the “AEO Association.” KCS also serves as an advisory group.

Singapore has one of the world's best trade facilitation programs. Although the program does not have an official name such as “AEO Advisory Council,” the Singapore Customs Authority maintains constant dialogue with the private sector and conducts a periodic and continuous consultation process with trade associations and large companies.

In summary, the concept of an “AEO Advisory Group” is an integral part of the program, particularly in countries and unions such as the European Union, the United Kingdom, and Saudi Arabia. A similar participation and consultation mechanism is also in place in many other developed economies, such as South Korea, Singapore, and Japan.

In Türkiye, although there is no group such as an "Authorized Economic Operator (AEO) Advisory Group,“ a ”Trade Facilitation Coordination Committee" was established under the obligations of the World Trade Organization Trade Facilitation Agreement with Presidential Decree No. 2019/6, published in the Official Gazette dated April 13, 2019, and numbered 30744. The heading “Authorized Consignee” is also included in the committee's agenda.

However, there is currently no official body supported by the state other than NGOs, which only represents companies that are Authorized Economic Operators. It is essential to establish an “AEO Advisory Group” within the Trade Facilitation Coordination Committee, which came into force with the Circular published in 2019 and is thought to be in need of an update.

The time is long overdue to establish an “AEO Advisory Group” to facilitate a two-way flow of information between the customs administration and the trusted trade community, shape new regulations, and jointly resolve implementation issues, where opinions and suggestions are directly conveyed to the administration.

Mehmet Altay YEGİN

International Authorized Economic Operator (AEO) Association

Chairman of the Board of Directors