Research Paper
Benefits of a HM Customs Approved AEO
With the Brexit move expected later this year, businesses are running on the aspect of uncertainty especially those dealing with imports and exports. Applying for AEO status might be the only shot to move goods from the UK to Europe. The program offers quick access to accredited businesses to move their fast track shipments through customs in simplified procedures. The current AEO program has fewer benefits, even though the movement of goods through customs in the UK is one assured benefit. Custom clearance is what they do, and any business will bet that it will get them through the borders.no one knows if after the Brexit move has happened, whether the AEO will be granted the privileges but it is easier to back it given that there is no other option (Cano, 2020). Markedly, applying for the status earlier enough can be a bonus to a business that is thinking beyond the Brexit move. Before the government of the UK decided on the Brexit move, there were less than 1250 businesses registered for the AEO status and authorized but the current market shows that such a range has been changing with the uncertainty of import and export business after the Brexit move has materialized.
The past two years before the referendum have shown the number of businesses applying for the AEO status increasing by more than double the previous number with many thinking that the status will shield them from the uncertainties of the shipping business. If the customs relationship between the European Union and the United Kingdom change, then the AEO status
is the best bet to place on the movement of goods through customs (de Wit, 2020). Even though it is not a guarantee that it might be so, it is the best bet. Furthermore, one does not have much to lose when applying for status. Notably, it is time-consuming and tedious when applying for the status, and hence it is recommended that the earlier the better (Deglas et al., 2020).
The application takes time for the government to approve it and equally takes a lot of time for almost four months for the same government to give authorisation for your business. If it is the best move, then businesses have to take it now, apply for the status to solve a bit of their uncertainty. If in the best scenario, the government accredits the AEO status for the customs business after the Brexit, applications for the same will increase tremendously and also take time for them to be accredited (Deglas et al., 2020). Therefore, it is the best move and advantageous if businesses apply for AEO status as early as possible. Fundamentally, for the business involved in the international supply chain, the customs controls and procedures have to be compliant and efficient, and the AEO status can guarantee that. Companies can understand their supply chain and exposure, and their security in the market is guaranteed by the AEO (de Wit, 2020).
Headlines have been running of how businesses with non-UK supply chains may benefit from the AEO status. Others have highlighted the life after Brexit, EU single market, and the custom problem with AEO sticking out to be the only option. Economists and business opportunities are looking at a solution that will enable quicker movement of goods through customs from goods in the EU and the UK (Pandey and Smiatacz, 2019). The strict custom rules after Brexit means that AEO will be the best thing for custom traders. The AEO standards are bale to cover for the problem if it arrives, and the most assuring thing is that it does not belong to the UK which means it is an independent body whereby the decision of the government would not affect the operations of the body. Among the benefits of applying for AEO include improved security and quicker access to custom authorization, comprehensive guarantees, and increased transport security.
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