Publication date: March 21, 2025
Authorised Economic Operator (AEO) is a status granted by customs authorities to economic operators who meet certain requirements in the area of compliance with customs rules, proper accounting, financial solvency and security standards. The AEO concept was introduced in the European Union within the framework of the Community Customs Code and its implementing provisions, and currently its legal basis is the Union Customs Code, established by Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013, OJ EU.L.2013.269.1 and delegated and implementing acts, in particular Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015, OJ L. U.EU.L.2015.343.1 and Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015, OJ EU.L.2015.343.558.
The AEO status was introduced to increase supply chain security and simplify customs procedures for credible and reliable entrepreneurs. Granting this status means the possibility of using numerous simplifications in customs clearance, such as simplified procedures, reduced number of checks or priority treatment of shipments in the event of their selection for inspection. The procedure for obtaining AEO status is precisely regulated in the provisions of the Union Customs Code, which specify the conditions that an entrepreneur applying for this status must meet. An application for AEO status is submitted to the competent customs authority, which conducts a detailed analysis of the entrepreneur’s activities in terms of meeting the requirements for compliance with customs regulations over the last three years, the effectiveness of the commercial and transport records management system, the level of financial solvency, safety and security standards and compliance with the relevant legal and organizational standards.
In Poland, the body responsible for granting AEO status is the National Revenue Administration, and the process itself includes a detailed audit conducted by the Customs and Revenue Service. The entrepreneur must provide appropriate evidence confirming that certain criteria have been met, and after obtaining the certificate, they are subject to periodic assessment to verify continued compliance with the requirements and maintenance of the status. An Authorized Economic Operator AEO can obtain one of two types of certificates: AEO C, which is an authorized economic operator status in the field of customs simplifications, or AEO S, which is an authorized economic operator status in the field of security and protection. It is also possible to obtain both certificates at the same time, which means granting AEO F status. Each of these statuses is associated with specific privileges. The AEO S certificate ensures fewer security checks, while AEO C gives the entrepreneur the possibility to use customs simplifications, which significantly speeds up and facilitates customs clearance.
The benefits of having the AEO status include primarily a reduction in operating costs by limiting the number of controls and delays, which directly affects the operational efficiency of the company. Additionally, the entrepreneur gains a better reputation among contractors and trade partners, which can translate into greater trust and better conditions for cooperation. Having an AEO certificate is also associated with greater trust of the customs administration and the possibility of using facilities in countries that have signed agreements with the European Union on the mutual recognition of the AEO status.
Legal status and AEO regulations
The legal status and regulations concerning the Authorized Economic Operator (AEO) are an important element of the international customs system, ensuring the facilitation of trade in goods and increasing the security of the supply chain. The AEO status was introduced by the European Union under the provisions of the Community Customs Code and its subsequent amendments, and its current regulation results mainly from the Union Customs Code (UCC) and implementing and delegated acts.
The legal basis is provided by the following legal acts: Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013, laying down the Union Customs Code (UCC), OJ EU.L.2013.269.1, Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015, supplementing the UCC, OJ EU.L.2015.343.1 and Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015, OJ EU.L.2015.243.558, laying down detailed rules for the application of the UCC. In the context of detailed rules for the functioning of AEO, the guidelines of the European Commission and the World Customs Organization (WCO) are also important, as they define global standards for the certification of economic operators in order to increase the security of international trade.
AEO status can be obtained by economic operators who meet specific requirements regarding customs compliance, accounting standards, financial solvency, and safety and security standards. There are two main types of AEO certificate: AEO C (authorized economic operator for customs simplifications) and AEO S (authorized economic operator for security and safety). It is also possible to obtain an AEO F certificate, which combines the benefits of both types of certification.
The granting of AEO status is done at the request of the entrepreneur, and the decision in this matter is made by the relevant customs authority after conducting a detailed verification of the fulfillment of the conditions specified in the regulations. The AEO status is granted for an indefinite period, but the entrepreneur is obliged to comply with the conditions that were the basis for obtaining it. Customs authorities have the right to periodically check compliance with the requirements, and in the event of finding irregularities, they may suspend or withdraw the certificate.
Having the AEO status brings a number of benefits for entrepreneurs, including simplifications in customs procedures, reduced number of physical and documentary checks, priority in customs clearance and the possibility of using customs simplifications in different countries under the mutual recognition of the AEO status. These simplifications are aimed at increasing the competitiveness of companies on the international market, reducing operating costs and shortening the time of customs clearance.
The AEO system operates not only in the European Union, but also in many other countries that have concluded agreements on mutual recognition of certificates, including the United States, Japan, China and Switzerland. Thanks to this, certified entrepreneurs can benefit from similar privileges in trade with these countries.
Consequences of having AEO status
Having the AEO status is associated with specific consequences in terms of both obligations and rights. First of all, an entrepreneur with this status is obliged to maintain high standards in terms of security and internal controls. He is required to apply procedures that allow for tracking the flow of goods, ensuring physical security, and risk management. In addition, the entrepreneur must regularly update his management systems and be prepared for inspections by customs authorities to confirm that the conditions for the AEO status have been met.
In practice, having AEO status brings many procedural benefits, such as customs simplifications, reduced number of physical and documentary checks, priority treatment of shipments in case of checks and the possibility to apply for additional simplifications in customs procedures. Holders of AEO status can also benefit from privileged treatment in terms of mutual recognition of status with other non-EU countries, which facilitates international trade and shortens customs clearance times.
However, the AEO status also entails significant obligations and consequences in case of non-compliance with certain standards. The economic operator must ensure continuous compliance with customs regulations, and any failure to comply may lead to suspension or revocation of the status. Customs authorities have the right to conduct regular audits and checks to verify compliance with the requirements. In case of violations, the economic operator may be charged with administrative sanctions, and the loss of the AEO status may negatively affect the business activity, leading to longer customs procedures and an increase in the frequency of checks.
The serious consequences of withdrawing AEO status are confirmed by the judgment of the Supreme Administrative Court of November 30, 2022,[1] which concerned the withdrawal of the AEO status permit for company A. The case began with the decision of the Director of the Fiscal Administration Chamber in Zielona Góra of March 28, 2018, which withdrew AEO status from company A. After the entrepreneur appealed against this decision, the Provincial Administrative Court in Gorzów Wielkopolski annulled the authority’s decision. However, the Supreme Administrative Court, after considering the cassation appeal, annulled the judgment of the Provincial Administrative Court and dismissed the entrepreneur’s complaint, upholding the decision to withdraw AEO status. This judgment shows that failure to meet AEO requirements may lead to the loss of this status, which results in difficulties in customs procedures and may affect the functioning of the company in international trade.
In addition, the AEO status obliges close cooperation with customs authorities, including informing about any changes that affect the fulfillment of the status conditions. Transparency in action and quick response to requests from supervisory authorities are required. In the event of a change in the organizational structure, management systems or other important aspects of the business, the entrepreneur is obliged to inform the relevant customs services, which allows for ongoing assessment of compliance with AEO requirements.
Another consequence of having the AEO status is the need to constantly monitor and update internal procedures. The economic operator must keep documentation on customs operations, control systems and security-related activities. Failure to fulfil these obligations or to respond appropriately to detected irregularities may lead to a loss of confidence of customs authorities and the revocation of the AEO status.
Procedure for obtaining AEO status
The procedure for obtaining the status of an Authorised Economic Operator (AEO) is a process regulated by European Union law, and its aim is to ensure greater security in the international supply chain and to facilitate customs procedures for entities meeting certain criteria. The legal basis for granting the AEO status is Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (UCC), OJ EU.L.2013.269.1, as well as delegated and implementing acts, including Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015, OJ EU.L.2015.343.558 and Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015, OJ EU.L.2015.343.1.
The procedure for obtaining AEO status begins with the economic operator submitting an application to the relevant customs authority in a Member State of the European Union. The application is submitted electronically via the IT system, and the economic operator must specify the type of certificate they are applying for. There are three types of AEO status: AEO C – customs simplifications authorisation, AEO S – security and safety authorisation, and AEO F – a full status combining both of the above.
The applicant must meet a number of requirements set out in EU regulations. The criteria include compliance with customs and tax regulations, appropriate organisation of accounting and records management system, demonstration of financial solvency, possession of appropriate security standards and professional competence in the scope of the activity covered by the application. Customs authorities conduct a detailed analysis of the application, including audits and visits to the company’s premises to verify compliance with the required conditions.
After verification, the customs authority makes a decision on granting AEO status. In the event of a positive assessment, the entrepreneur receives an AEO certificate, which is valid throughout the European Union. This status brings numerous benefits, including fewer customs checks, priority treatment in customs procedures, simplifications regarding customs declarations, as well as the possibility of using the mutual recognition of AEO status under agreements concluded between the EU and other countries, such as the United States, Japan or China.
In the event of a refusal to grant AEO status, the economic operator has the right to appeal against the decision of the customs authority in accordance with national administrative regulations. In addition, the AEO status is subject to periodic verification, and its violation may result in the withdrawal of the authorization.
[1]Judgment of the Supreme Administrative Court of 30 November 2022, reference number I GSK 3275/18, Lex No. 35113014