What is AEOs Program?

This is a trade facilitation tool that aims to enhance supply chain security and facilitate legitimate trade. It was introduced based on Customs-to-Business (C2B) partnership pillar introduced by the World Customs Organization (WCO) as provided for under the 2021 SAFE Framework of Standards. In Tanzania, AEO program is designed to enhance the relationship between Tanzania Revenue Authority and compliant customs stakeholders.

An AEO is defined as an individual, a business entity or a company that is involved in international trade and is duly authorized by the Commissioner for Customs to transact business with Customs under special arrangements.

 

Who can be an AEO?

Any of the following compliant international trade operators:

1. Importer/ exporter 
2. Clearing and forwarding agent (CFA)
3. Bonded warehouse
4. Transporter 
5. Manufacturer (engaging in import and export)

 

Categories of AEOs 

There are two categories of AEO in Tanzania:

1. National AEO - the benefits are limited to the jurisdiction of Tanzania.

2. East African Community Regional AEO - this a more comprehensive program since its members are mutually recognized by the East African Community (EAC).

 

Eligibility criteria for AEOs

To be eligible for authorization, the Commissioner of Customs may require to verify any statement in an application. The applicant should be able to provide information pertaining to all the following or any other:

Company details

Company details should indicate company profiles, contact persons, nature of business and employee profile.

Record of Compliance

applicant should not have contravened any laws, rules and regulations pertaining to Customs, Domestic Taxes and all relevant Government Agencies for a period of 3 years prior to application for authorization.

Maintenance of records

The applicant shall maintain timely, accurate, complete and verifiable records relating to its customs transactions. The applicant must demonstrate that the computer systems, the organizational internal operational procedures and processes will ensure compliance 

Financial Solvency

The applicant must demonstrate adequate financial standing. The applicant shall be deemed to have met the conditions of solvency if it can be proven for the past 3 years. The applicant must have fulfilled his obligations regarding payments of Customs duties, taxes and other charges for last three years.

Security and safety standards

The applicant must demonstrate a high level of awareness on security and established safety measures, internally and in its business activities with clients. Understanding and implementation of safety and security controls must extend to the applicants’ personnel. 

Volume of business

The volume of the applicant’s business will be used to gauge eligibility (Risk assessment) for authorization.

Nature of Goods Traded

The applicant shall be assessed as to the nature and flow of goods traded in.

Trade Partners

The applicant shall have to prove to the satisfaction of Customs that its trade partners demonstrate high level of awareness of security and established safety measures.

 

Procedure to become a National AEO 

1. Lodging an application with the customs through duly filling in the online application in Tanzania Electronic Single Window (TanESW) portal attaching all relevant documents including company details, code of conduct, license and certificates, Memorandum and articles of association, financial statement etc.
2. Vetting and verification by the customs including on site validation
3. Signing memorandum of understanding (MoU) with the customs
4. Issuance of AEO certificate to the qualified applicant

 

Benefits to the AEOs

1. Recognized as secure and reliable partner to customs administration 
2. Faster clearance of goods
3. Green channeling of their declarations
4. Automatic processing of declaration
5. Non-intrusive examination of goods/ documents (except for random or risk-based interventions)
6. Waiver of Electronic Cargo Tracking System (eCTS) 
7. Waiver of movement bond requirements for unaccustomed goods wherever applicable
8. Priority treatment in cargo clearance chain such as telephone line at service centers and release points
9. Self-management of bonded warehouse
10. Professional advice on customs compliance and security
11. Expedited payment of refund claims
12. Reduced Customs security wherever applicable
13. Guaranteed renewal of Customs license
14. Priority to participate in Customs initiatives  

 

List of Authorized Economic Operators