FEATURED: RRA opens registration for AEO programme authorization
Monday, December 11, 2023
Authorized Economic Operator programme is designed to facilitate international trade while ensuring compliance with supply chain security standards.

Rwanda Revenue Authority (RRA) has called on business operators involved in the international movement of goods to apply for the Authorized Economic Operator (AEO) programme— designed to facilitate international trade while ensuring compliance with supply chain security standards.

The 21st century has witnessed notable globalization of trade and a substantial increase in import and export volumes within the East African region.

Consequently, Customs administrations have been grappling with a growing demand for faster clearance and reduced trade bottlenecks, all while maintaining proper control to enhance security in the global supply chain and contribute to socio-economic development through revenue collection.

The AEO program was introduced to fundamentally transform the relationship between businesses and Customs Administrations. It proposes preferential treatment for businesses that demonstrate compliance through a structured risk assessment.

Yvonne Gatera, Assistant Commissioner in charge of Customs Operations Support Division at RRA, said that authorized businesses may enjoy benefits tailored to their category across the EAC Region. Eligible applicants include importers and exporters, customs agents, freight forwarders, warehouse operators, transporters, and manufacturers.

"For importers, exporters and manufacturers, their declarations are prioritized throughout the entire clearance process. There is no physical examination of goods, and goods are subject to automatic release from customs," she said. Physical examination can only occur in random or risk-based interventions.

For transporters, when the Electronic Cargo Tracking System is required, AEO certified businesses may be exempted, applicable to consignments where all parties — Importer/Exporter, Customs Agents, and Transporter — have AEO authorization.

They also receive priority in processing refund claims, with potential simplifications such as special desks for AEO refund claims, reduced processing time, and considerations for lower Customs Security, subject to relevant provisions of law or regulations.

For Customs Agents or Freight Forwarders, AEOs are assured license renewal without vetting for a three-year clearing license, though fees must be paid. Any consignment declared by an AEO Customs Agent is processed before the non-AEO declarations.

Eligibility

RRA invited companies to apply from November 27 to December 29, 2023. To be eligible for the AEO programs, applicants must provide details regarding company information, a record of compliance for three years with no offenses against customs laws or partner state tax laws, and evidence of corrective action for a tolerable number of technical errors.

They must also possess the maintenance of records related to customs transactions, financial solvency, security and safety standards, business volumes, and the nature of traded goods.

Interested companies are requested to apply through the AEO application and self-assessment form available on the RRA website [https://www.rra.gov.rw/fileadmin/user_upload/aeo_application_and_self_assessment_form.pdf ]. A duly completed form must be submitted in soft copy via email at goldcard.applications@rra.gov.rw, not later than 29 December 2023. Customs make a decision on AEO authorization within 90 days of receiving the application.

The AEO program is aligned with the World Customs Organization SAFE Framework of Standards. The EAC Partner State Customs Administrations adopted the SAFE framework in 2007 and agreed to implement the AEO program as a region.

Validation committees in the Partner State conduct reassessments every three years, with the possibility of reassessment before the expiration of the three-year period if necessary. If the operator is found compliant after a reassessment, the validation committee prepares a report for submission to the approval committee for re-authorization.

Non-compliance may result in recommendations for a warning, suspension, or revocation, depending on the gravity of the situation.

So far, 89 businesses operating in Rwanda are registered under the Authorized Economic Operators (AEO) Program.