Authorized Economic Operator

The progress in globalization has led to a significant increase in the flow of goods between countries, which in spite of bringing many benefits to the world economy, it is also a cause for concern as a gateway to drug trafficking and terrorism.

Actually, crime organization has been structured vertiginously and several terrorist factions worldwide have taken advantage of the trade volume to promote circulation of illicit goods or misconduct, circumventing customs controls with the entry of drugs, weapons, smuggling, money laundering and other criminal activities.

In order to streamline Customs’ workflow making them quicker and with the same rework but without compromising the strictness of control on loads, some countries started to implement security measures and compliance with Customs. Thus, the concept of Authorized Economic Operator was created, which in Brazil is regulated in paragraph one of article 1 of Normative Ruling of Brazilian Internal Revenue Service (IRS) under No. 1598/2015:

The Authorized Economic Operator (AEO) means the stakeholder that in a foreign trade operation involved in the international movement of goods under any title whatsoever according to the voluntary compliance with the security criteria used in the logistics chain or the tax and the customs obligations according to the certification type shows to meet the compliance and reliability levels required by AEO’s Program.
In this way, the Authorized Economic Operator (AEO) is a strategic partner of the IRS, which after proving compliance with the requirements and criteria of the OAS Program, will be certified as a low risk reliable operator, and therefore will enjoy the benefits offered by Customs authorities related to greater agility and predictability in international trade flows.

The objectives of the AEO Program are to provide greater agility and predictability in international trade flows, to seek the growing adhesion of economic operators, including small and middle companies and to increase the risk management of customs operations, and in addition.

Execute Mutual Recognition Agreements (MRA) according to Brazil’s interest;
Implement work processes aiming at the modernization of the Customs;
Intensify the harmonization of the work processes with other regulatory bodies of the foreign trade;
Increase in the reliability level on the relations among economic operators, society and Brazilian Federal Revenue Service (IRS);
Prioritize the Customs actions with focus on the foreign trade operators of high risk or unknown risk;
Consider the implementation of other patterns that contribute with the security of the logistics chain. Therefore, the Brazilian Authorized Economic Operator Program consists of the CERTIFICATION granted by the Customs to the operators of the international logistics chain meeting the security levels, compliance and reliability established in its AEO’s Programs.

Countries Adhering to AEO’s Program

Information made available by AEO’s Team of the Brazilian IRS, according to 2017 edition of the document called Compendium of Authorized Economic Operator Programs of the World Customs Organization (WCO), there are 73 Programs of the AEO implemented and 17 in progress, as verified in the chart below:

What are the Mutual Recognition Agreements

The Mutual Recognition Agreements (MRAs) are bilateral agreements executed among Customs from countries that have compatible AEO Programs which means that both the adopted criteria and the validation procedures will have to be equal or similar.

The main objectives of MRA are the following:

Recognition of AEO certifications issued by the Customs of the other country;
Priority treatment for loads and consequent cost reduction related to storage;
Reciprocal commitment of offer of comparable benefits;
Predictability of the transactions;
Predictability of the transactions;
Currently, Brazil has an agreement with Uruguay and one in progress in the United States with the adaptations in law is under development. In addition, they have already expressed the intention to execute the MRA with Brazil, and in China, Russia, India, South Africa, Argentina, Mexico and South Korea.

Advantages in AEO defined by the Brazilian IRS

According to articles 8 to 12 of the Brazilian IRS Normative Ruling No. 1.598/15, the operators certified in Brazilian AEO’s Program will receive benefits related to the facilitation of customs procedures both in the country and abroad.

Phases gives Certification

Differencial of Grupo Assist

In addition to the gains already presented by the Brazilian IRS in Brazil with OEA’s projects, Grupo Assist adds other values to its partners. For example:

Continuous reduction of customs and logistics costs;
Reduction in court and administrative costs;
Reduction in labor and outsourced costs in the tax area and COMEX;
Basic training of the employees and outsourced involved with COMEX;
Reduction in tax liabilities;
Possibility of recovery of tax credits;
Reduction in its employees and outsourced dos riscos de responsabilização solidária tributária;
Redução dos riscos de processos penais tributários e de lavagem de dinheiro;
Auditorias periódicas.