Since 2007, East African Community (EAC) Partner States have agreed to establish the Authorized Economic Operator (AEO) programme, following the adoption of the World Customs Organization (WCO) guidelines. Today, different companies are benefiting a lot from being granted special customs status as Authorized Economic Operators (AEO).
This status is awarded to companies that have consistently demonstrated a very high commitment to comply with customs and domestic tax regulations. In return, companies benefit in various ways, including recognition as a low-risk company and faster clearance of goods in Customs, simplification of Customs procedures among others.
Irrespective of the size of the business, operators eligible are those involved in the international supply chain and carry out Customs-related activities.
"The AEO program facilitates importers, exporters, customs clearing agencies, warehouse operators, transporters, and manufacturers, in the Customs clearing process,” said Mwumvaneza Félicien, Commissioner for Customs Department at RRA.
Rwanda Revenue Authority (RRA) informs interested businesses that application for Authorized Economic Operators (AEO) is open until 28 March 2025.
Benefits are enormous
Obtaining AEO status means that Customs can handle consignments from AEO companies with fewer controls compared to others. It is, therefore, reserved to traders considered low risk and trusted by Customs authorities.
This is very important in light of increasing trade volumes and the rising vulnerability of the international trade supply chain to security threats. Since its introduction, the AEO program has had a tremendous impact in reducing the costs associated with the movement and clearance of goods.
Among other benefits, this has been ensuring that raw materials consistently arrive at the production facilities on time and their refund claims are processed quickly. Authorized businesses may enjoy benefits tailored to their category across the EAC region.
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. Physical examination may only occur in random or risk-based interventions.
To be seamless, the procedures provide the appointment of an officer assigned to attend to AEOs to ensure that they are accorded faster clearance at all Customs offices.
In cases where the Electronic Cargo Tracking System (ECTS) is required, it may be waived for AEOs. They are also given priority in the processing of the refund claims submitted. This is in addition to the reduced Customs security where applicable, priority to participate in Customs initiatives, guaranteed renewal of Customs license, and priority treatment in the cargo clearance chain.
For transporters, renewal of licenses issued by Customs shall not be subject to the vetting process but the AEO shall be required to make payment for licensing fees and any other related payments.
In cases where the ECTS is required, an AEO may be waived from this requirement.
Bonded Warehouse Operators: The renewal of the license shall not be subject to the vetting process but the AEO shall be required to make payment for licensing fees and any other related payments.
Subject to relevant provisions of law and regulations, consideration for a lower Customs security on a case-to-case basis will be allowed to an AEO.
Through the program, the business community can benefit from simplified procedures and preferential treatment based on the level of voluntary compliance, improved market access, fewer physical and document-based controls, and the option to choose the place of control when necessary.
To be granted this status, we encourage businesses to comply with all laws, rules, and regulations related to the Customs Services and Domestic Tax Department.
So far, 95 businesses operating in Rwanda are registered under the Authorized Economic Operators (AEO) Program.
How to join
Joining the EAC Regional AEO program therefore opens the doors for unlimited opportunities and the key to unlocking the potential of your business. It is the Customs way of supporting business and for business to support development in the EAC region.
Applicants are required to fulfill the following: