Daks Couriers Becomes AEO Certified
DAKS COURIERS and ten more companies have been accredited as Authorised Economic Operators. These join the first ten that were accredited last year. The AEO scheme is derived from the World Customs Organisation (WCO) framework of standards known as the SAFE Framework of standards. The SAFE standards give guidelines on how to better facilitate and secure the international trade supply chain. The AEO concept requires Customs to identify reliable businesses, form partnerships and in return offer benefits. These reliable businesses would be called Authorised Economic Operators.The Authorised Economic Operator Program is part of the broad modernization reforms being undertaken by the Uganda Revenue Authority to promote compliance and enhance facilitation of international trade and the security of the international trade supply chain.The AEO is among the many modernization reforms undertaken by URA to improve service delivery and compliance in order to fulfill its mandate. An AEO is an individual, a business entity or a government department that is involved in international trade and has been duly authorised by the commissioner Customs to transact business with Customs under special arrangement.The scheme aims at formation of partnership between compliant businesses and the URA in order to facilitate trade by reducing the Customs controls for complaint taxpayers.Background to the AEO ProgramThe growth of global trade and increasing security threats to the international movement of goods have forced customs administrations to focus more and more on programs aimed at facilitating and securing the international flow of trade.
The AEO aims at enhancing trade facilitation, promote Customs-to-business partnership promote the security of the international supply chain and promote voluntary compliance with Customs laws and procedures
Benefits of the programShort term benefitsAuthorisation grants a special status which allows the client to enjoy a range of immediate benefits when transacting business with Customs. These include;1. Pre-arrival clearance2. Priority treatment at all times while transacting business with Customs3. Choice of place of physical examination4. Automatic renewal of licenses once all necessary fees have been paid5. Operator managed Customs bonded warehouse.6. Withholding tax exemption statusLong term benefitsIn the long run, the AEO certification is expected to yield the following benefits to businesses;1. Reduction in the cost of doing business: The AEO status helps the AEO to avoid some of the costs related to Customs enforcement controls, delays and other related risks2. Enhanced Reputation and image: The certification will enhance business image3. Increased turnover and profitability: As a result of quicker clearance of goods, the operators’ turnaround time will improved leading to increased turnover and profitability.4. Improved Quality of Service: Accredited companies will be in the position to offer better services to their clients than their non-accredited competitors due to reduction in costs associated with Customs clearance.5. Improved internal controls: AEO companies maintain robust internal control systems as a condition for maintaining the status. This in turn leads to good internal controls which will safeguard the entity from risk associated with weak internal controls.