Authorised Economic Operator (AEO). Looking into the current perception and the future of the AEO program in Sweden

Abstract

Abstract This paper revolves around the European Union's (EU's) Authorised Economic Operator (AEO) program, where operators are provided preferential treatment and simplified customs procedures with the real purpose creating a totally facilitated and secure international supply chain. The September 11 attacks uncovered how vulnerable supply chains actually were to unanticipated disruptions. Following the attacks, number of initiatives aimed at improving the security of the supply chain were introduced worldwide. While securing the supply chain, these programs can have the effect to hinder trade. In a world where customers are demanding their product to be delivered quicker and cheaper, the topic of trade facilitation has been increasingly discussed. The World Customs Organization (WCO) established the SAFE Framework guidelines in 2005, aiming to both facilitating trade and securing supply chains at the same time. The SAFE Framework provides the base for all regional AEO programs worldwide. This paper is based on a previous research from 2011, which focused on how the AEO program impacted supply chain security and customs procedures for Swedish companies. However, this paper revolves around how companies in Sweden perceive the AEO program in terms of its current and future impacts. Due to limited research available on the topic of AEO, an exploratory research was performed providing the reader with a conceptual framework of all related aspects of the AEO program. Interview results have revealed that the AEO certification raises security awareness within companies as well as slightly reducing the overall workload when it comes to customs procedures. Other than that, the program offers limited benefits but companies hope that being certified will aid them in the future. The paper concludes that it is essential that the AEO certification and its reputation are sufficiently valuable in order for companies to apply to become certified or even maintaining their current AEO status. Hence, governments and companies should strongly promote the AEO certification in order to exploit its suggested benefits to the fullest.