AEO certificates and Brexit

Subject: AEO certificates and Brexit

The Authorised Economic Operator (AEO) certificate is a certificate issued by the customs authorities to businesses operating internationally which comply with certain safety criteria. Among the advantages that AEO certificates afford to businesses trading internationally is that of being subject to less strict inspections, in the light of the role that they play in the logistics chain, thus reducing delays at borders.

If, as a result of Brexit, the United Kingdom finds itself outside the European territory where AEO status applies, this will create much additional complexity and many additional risks of delays for all forms of transport to and from the UK. In is therefore in the interests of both parties to find a pragmatic solution to permit continued good cooperation. An AEO programme would also be a very obvious option to choose, as it is an emerging trend in many countries outside the EU.

1. What is the United Kingdom’s position in the Brexit negotiations regarding the system of AEO certificates for international trade and transport?

2. Will EU companies with an AEO certificate automatically retain it for trade with the UK when the UK definitively becomes a third country in relation to the EU? Is this a topic of discussion during the ongoing negotiations?

Answer given by President Juncker on behalf of the Commission

(16 July 2018)

1. Authorised Economic Operator (AEO) authorisations have not been a topic of discussion in the ongoing negotiations with the United Kingdom concerning its withdrawal. Based on the European Council (Article 50) guidelines of 23 March 2018 (1), the European Union is ready to engage on future customs cooperation between the European Union and the United Kingdom with full respect for the EU's regulatory and jurisdictional autonomy and the integrity of the EU Customs Union.

2. EU companies which have the status of Authorised Economic Operator will retain their status after the withdrawal of the United Kingdom from the European Union, since the Union Customs Code will remain in place for the European Union.

However, as recalled by the Notice to stakeholders on the withdrawal of the United Kingdom and EU rules in the fields of customs and indirect taxation (2), and subject to a transitional arrangement in a possible withdrawal agreement, the EU rules in the field of customs will no longer apply to the United Kingdom as of the withdrawal date.

Therefore, authorisations issued by the authorities of the United Kingdom granting the status of Authorised Economic Operator and other authorisations for customs simplifications, will no longer be valid in the customs territory of the European Union, as stipulated in the abovementioned Notice to stakeholders.

The validity of Authorised Economic Operator authorisations issued by EU customs authorities in the United Kingdom after withdrawal is not known at this stage as the United Kingdom's Government has not yet published a position on this and the new customs bill that will apply after the withdrawal is still being discussed in the United Kingdom's Parliament.

Although this topic has not yet been part of the negotiations with the United Kingdom, it could be addressed as part of the future EU- United Kingdom relationship in the context of customs cooperation.

⋅1∙ http://www.consilium.europa.eu/media/33458/23-euco-art50-guidelines.pdf

⋅2∙ http://trade.ec.europa.eu/doclib/docs/2018/january/tradoc_156573.pdf