Trusted trader programs or Authorized Economic Operators or AEO programs establish Customs to business partnerships where the aim is to secure the supply chain and encourage valid low risk trade. Reputable companies are deemed less risky by the Customs department and are examined or held up a tad bit less than the regular companies when it comes to import export of goods. The thriving nature of global trade and security threats when moving the goods across international borders enforces the customs department to centralize on securing the international trade. The WCO or World Customs Organization established the Framework of Standards to Secure and Facilitate Global Trade or SAFE. It entails standards that customs departments can follow when building their trusted trade program. You can learn more about it by getting in touch with Clearit customs clearance.
Core elements of SAFE
- To harmonize the advance e-cargo information
- Every country complying with SAFE must employ a consistent risk management approach so that the security threats are being addressed
- In accordance with the customs administration of the receiving nation, the customs admin of the sending nation needs to inspect high risk containers and cargo
- Benefits must be defined that customs will offer businesses that fulfill the minimal supply chain security threats and best practices by all means.
Advantages of trusted trade programs
- It makes trade a smooth affair for approved importers, exporters, carriers and other parties involved in supply chain as they are deemed low risky.
- These companies also have access to improved marketability and global competitiveness.
- When you are considered low risk, then the companies will also confront less delays because of inspection.
- You also have faster access to borders and benefits if there are any border disruptions. This helps in saving time and less risk for perishable stuff.
- They also have less risk for tampering shipments because they have to go through various security measures to be eligible for trade program.
- They also have direct access to customs authorities if any issues come up.
How to become a trusted trader?
In order to be accredited as a trusted trader in any country, you need to accomplish a long and detailed process where the company must showcase the following aspects:
- Compliance history with Customs
- Financial viability
- Cargo and premise security
- Trading partner security
- Secure record keeping
- On-going on site validations and audits
- Possible administrative fee