Kerry Logistics Network Limited (‘Kerry Logistics’; Stock Code 0636.HK) is supporting customers gain Authorised Economic Operator (AEO) status, which gives access to Customs benefits, including inland clearance of goods, rather than at the border, with an online tool.
AEO accredited companies are subject to fewer physical inspections and document checks by Customs, and have priority status in times of heightened security, or in case of a strike, or any other disturbance, with benefits extending to tax and Value Added Tax (VAT) payments.
“As and when tariffs for European Union (EU) trade are introduced, then having fast-tracked Inward and Outwards Processing Relief (IPR/OPR) authority will be important to avoid duty payments,” said Emma Rowlands, Strategic Sales Director, Kerry Logistics UK.
“AEO is now advocated by the World Customs Organisation (WCO), EU, and the UK as the standard route for access to Customs benefits.
“These benefits could be vital in whatever Customs arrangements develop out of Brexit.”
The AEO “Trusted Trader” accreditation will be strongly beneficial for all EU businesses by 2022.
AEO creates competitive advantage by enabling a company to answer tenders from international companies with an AEO specification and gives effective management of, and reduction in, the risk of theft, counterfeiting, contamination, or grey market shipments.
“It represents the most meaningful solution, in that goods could be cleared at secure warehouses in NI and Ireland rather than at the border, ensuring a smooth transition,” said Rowlands.
AEO accreditation involves a potentially lengthy application process depending on the complexity of the organization.
Kerry Logistics customers can use an online tool to simplify the process so that the AEO questionnaire can be completed in a structured manner, with guidance notes, which are accessed through a series of “pop-ups” that appear with each question.
Upon completion, customers instantly receive an Executive Summary with a Red, Amber, Green (RAG) rating, highlighting potential areas of non-compliance prior to submission.
Following the summary customers also receive a detailed report highlighting the RAG rating for each answer and giving guidance on how to improve performance and increase the chances of being compliant.
Once the risk areas have been mitigated, the C117 and C118 forms can be automatically populated at the press of a button and submitted in an electronic format to the United Kingdom’s HM Revenue & Customs (HMRC).
