ZAINAB JUNAID
In order to have a holistic understanding of Authorized Economic Operator(AEO) regulatory framework, the United Kingdom’s His Majesty’s Revenue and Customs (HMRC) recently hosted the Nigeria Customs Service (NCS) team for an AEO program benchmarking study.
The NCS team led by Ms. Nnenna Awa were taking through a thought provoking session on the effectiveness and efficiency of the AEO programme between July 16 and 19, 2024.
This is part of the World Customs Organization(WCO) Accelerate Trade Facilitation Programme funded by the United Kingdom in support of NCS’ journey towards an established AEO Programme in line with the WCO SAFE Framework of Standards.
WCO Safe framework emerged as the global Customs community’s concerted response to threats to supply chain security, equally supporting facilitation of legitimate and secure trade.
The study visit to HMRC according to WCO included components of Risk Management and Post Clearance Audit as fundamental pillars for a successful AEO Programme.
This development followed a February 2024 diagnostic mission and remote technical assistance sessions in the past months to support the recently launched NCS AEO Pilot, said WCO.
WCO noted that the AEO Programmes of both HMRC and NCS are harmoniously designed with tier systems and similar criteria, which provided the opportunity for the NCS to gain empirical experience in the regulatory framework and management of AEO procedures by learning from the HMRC.
In his remarks, Mr. Alan Chalk, a representative from the UK’s Foreign, Commonwealth and Development Office (FCDO), emphasized that the peer-to-peer exchange would contribute to the Enhanced Trade and Investment Partnership between the two countries, as signed on 13 February 2024.
An HMRC’s client AEOs informed that a successful AEO programme, such as that of the UK, resulted in tangible benefits beyond trade facilitation that had a direct positive impact on return on investment, i.e. being viewed as low risk by insurers, and propelled improved brand image through business partner security.
Also speaking, the Head of the AEO International Policy, Ms. Yasmeen Elahi, underscored the importance of the Customs-Business collaboration through forums, such as consultative working groups, for an effective implementation of an AEO Programme.
To her, this include conveying the importance of adhering to the SAFE requirements to ensure compatibility of AEO Programmes for potential Mutual Recognition Agreement (MRA) negotiations in the future.
Ms. Nnenna Awa, AEO team Leader of the NCS, on her part, expressed her enthusiasm about the positive impact the learning uptakes would have on the effectiveness and efficiency of the AEO Pilot. She emphasized that the insights gained will contribute to developing a comprehensive, yet adaptable, legal framework for Nigeria’s AEO Programme, thereby enhancing international supply chain security and compliance with Customs requirements in line with the NCS’s strategic objectives.
The WCO Accelerate Trade Facilitation Programme will in the coming months continue to provide tailored capacity-building support to the NCS towards a successful implementation of the AEO Programme in areas such as practical AEO validations and peer-to-peer learning focused on Post Clearance Audit methodologies to support all Risk Management mechanisms, including for AEO purposes.
(Culled out from WCO)
