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Many businesses are still unaware of the looming changes to Customs which kick in on 1st May 2016.

At the cornerstone of those changes in AEO and any business involved in the International Supply Chain should be aware of the changes and decide whether commercially they should do anything.

Commercial Impact of AEO

This depends on where in the International Supply Chain you are but is as follows:-


- If you use any kind of duty suspension or relief then the changes will affect you – this is because if you don't have AEO, HMRC will ask for a financial guarantee in order for you to continue to benefit from the relief – this is a big deal so ensure you are informed of what this means to you – we can help!

- Even if you don't use any duty relief schemes, the way imports will be handled will change and could disrupt business so ensure you know about what the changes mean for your business as it could be business critical to have shipments delayed.


- Although AEO is an EU kitemark, many countries have are or developing an equivalent and some such as the USA, Japan & China have mutual agreements with the EU already – we are already finding businesses in these countries, particularly the USA are insisting that suppliers have AEO or are actively seeking AEO and so commercially it could affect existing contracts.

- Similarly, as AEO is a kitemark, it can give a competitive edge when tendering for new contracts as it demonstrates the standards which a business has met.

Logistics Providers including Freight Forwarders / Transport Companies / Warehousing

- Any business that handles goods which are imported or exported from the UK will be affected by AEO given that importers and exporters who are AEO authorised will need to ensure that their business partners operate to AEO standards as well. By having AEO accreditation it will give such providers a competitive edge because it will not only demonstrate the standards operated to BUT will save the importer or exporter hassle in their own AEO accreditation process.
- Given that of the HMRC estimated 150,000 businesses which AEO will affect, less than 400 are AEO authorised and that 2016 is less than 2 years away, isn't it time you looked at how AEO affects your business?

The Customs People has been assisting businesses with AEO from assisting in making the decision to go for AEO accreditation (or not) to helping with the process to obtain the accreditation.

For further details contact us today on 0161 8268 926

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