Authorized Economic Operators (Essay Sample)

Authorized Economic OperatorsStudent’s NameUniversityCourseProfessorDate Authorized Economic Operators Executive Summary of Main Points Practice Critiques evaluate the procedures that the General Authority of Customs uses to administer customs procedures. This Practice Critique finds that: The Qatar AEO program aligns with Section 1 Article 7 paragraph 7 of WTO TFA in promoting fairness among participants. The benefits entitled to Qatar AEOs as outlined in the program manual are consistent with the provisions of The Revised Kyoto Convention (RKC) General Annex Chapter 3. The Qatar AEO program needs to sign more mutual agreements to achieve international recognition that other authorities like the New Zealand SES have. The guidelines and conditions for joining Qatar AEO are outlined in the operations manual which is publicly accessible from the GAC website on the customs procedures page. Legislation The Qatar Authorized Economic Operator (AEO) program was established in January 2019 to enhance cooperation between government and the private sector during international trade. According to customs procedures for Qatar economic operators, candidates of the AEO program have to produce documents like three-year financial statements, legal files, and organizational structure when applying to join the program (GAC, 2020). The World Trade Organization Trade Facilitation Agreements (WTO TFA) describes measures for authorized operators in Section 1 Article 7 paragraph 7 which allows establishment of a separate scheme or making the procedures available to all operators (WTO, 2017). Paragraph 7.2(a) of the article requires the operators to have a clean compliance record, internal controls, financial and supply chain security to match the criteria. These provisions are observed by the GAC since the requirements for joining the program as outlined in the customs procedures page include a lack of criminal or customs offenses, and a stable financial system showing three years of consistent operation.The Revised Kyoto Convention (RKC) General Annex Chapter 3 and Transitional Standard 3.32 provide that individuals must have a record of compliance and a satisfactory system to be authorized as operators (WCO, 2018). The benefits entitled to authorized operators in this standard include the timely release of goods with minimum information. International Comparison There are thigs that stand out while comparing the Qatar AEO program to that of New Zealand Customs Service. In New Zealand, the program is referred to as the Secure Export Scheme (SES) and was launched in 2004. Both Qatar and New Zealand AEO programs align with the WCO TFA standards and focus on securing the supply chain and making business easier for traders. However, the New Zealand SES is only designed for exporters and ensures that they do not encounter border delays both locally and overseas (New Zealand Customs Service, 2023). New Zealand has joined mutual recognition agreements with many different countries globally which has given the SES program global recognition. Therefore, transport operators, loading sites, and other businesses can join the scheme. Qatar’s AEO program accommodates both importers and exporters. Its international recognition is also limited hence the need to seek mutual recognition of more authorities internationally. Impacts On Stakeholders The AEO program has an impact on businesses and government authorities. An example is when businesses gain the trust of customs as they are classified as low risk from the background checks that guarantee their AEO approval (GAC, 2020). Approved companies also have constant communication with customs which enables them to predict business operations at the borders for efficient operations. Communication is also crucial to the GAC and government agencies since the authority can gather intelligence from the private sector through accredited AEOs. Close relationships between AEOs and the government can promote a good reputation for government agencies among business communities and this is likely to attract more investors to the territory. The AEO program can be improved by encouraging more businesses to join by addressing bureaucratic procedures involved in the process. When more businesses are accredited, consumers will benefit from quality goods and services since trade restrictions and prohibitions will be followed. Constraints The AEO program may promote competitive disadvantages to companies that are not accredited under the program. According to the WTO TFA Section 1 Article 7 paragraph 7.3 AEOs are entitled to rapid release, low documentation requirements and deferred payment of customs duties (WTO, 2017). While these requirements benefit AEO companies, their unregistered counterparts may experience unfair treatment such as delayed clearance since they are not prioritized. This can disrupt their business operations and attract more import and export charges hence dissatisfaction. The issues can be addressed by assigning AEOs entirely separate clearance p...