The customs procedure, which is an extremely complex one, essentially provides for the conduct of a sequence of operations which the economic agent must carry out and which can consist of the filing ...of declarations, the presentation of goods to the customs, the making available of documents to customs authorities, the setting of guarantees, the payment of customs debt and other duties, etc. These requirements stipulated by the relevant legislation in the field generate influences on the activity of any firm, involving consumption of logistical resources, financial, time etc.
One of customs main tasks is to assess risks in the flow of goods. Risks are those factors that could influence Customs objectives. In pursuing those objectives it is important to have good knowledge ...of the risks that we face and the impact they might have on the objectives. The Customs administrations in the Member States have opted to base the control on economic operators on the basis of risk management. The purpose of using risk management is to aim Customs’ control activities on risks rather then on random selected aspects or declarations.
The article presents a comparative study of the AEO institution’s development in the legislation of the EU and Ukraine. It focused on differences in perceptions of the role and functions of AEO and ...related differences in ways and means of introducing this institution. Development of partnerships between customs authorities and businesses incorporated a concept of trusted trader. The said concept had developed through the whole international framework of standards in the field starting from the Revised Kyoto Convention and even earlier at the national level in the number of countries. However, current senses of AEO status were introduced into the EU legal space only after entering into force the Union Customs Code of 2016, supplemented by the comprehensive development of international bilateral and regional agreements in the study area. Besides, the research emphasized problems associated with the formation and development of the AEO institution in Ukraine. The European integration aspirations led to the emergence of provisions in the legislation of Ukraine on the provision of benefits and simplifications by customs authorities to economic entities in the course of customs control. However, considerable problems associated with introducing the national system of customs regulation and the practical implementation of the AEO arose from the lack of confidence in businesses and somewhat misunderstanding the core of relations between AEO and customs authorities. Several legislation gaps and differences with respective EU legislation made become obstacles for study reform and practical implementation of the AEO institution in Ukraine.
Abstract
This study examines the impact of the Authorized Economic Operator (AEO) certification on export stability. Using a new and unique dataset on AEO certification, combined with the Chinese ...Customs Enterprise Database and Chinese Industrial Enterprise Database from 2002 to 2013, we find that AEO certification has a positive impact on export stability by employing a staggered difference‐in‐differences empirical strategy. It reduces the likelihood of export failure, enabling certified firms to achieve higher efficiency and maintain competitive advantages in trade risks. The negative effect of AEO certification on export failure is prominent in firms exporting products with higher prices, more physical inspection, and higher requirements of customs clearance time. Along with AEO adoption, certified firms perform better in export stability than non‐certified ones.
The article discusses current issues related to the development of the institution of an authorized economic operator (hereinafter — AEO) in Russia. The study is devoted to the analysis of the ...regulatory framework, and also analyzes the current state of affairs. the purpose of the article is to identify problems that require discussion and deeper research in order to improve the regulation of the AEO institution; formulating conceptual proposals for its development and involving in this institute companies that really need simplifications when carrying out customs operations for conducting foreign trade activities. This study is based on the methodological approaches of domestic scientists to the problems of development of economic institutions. When conducting the study, the method of comparative analysis of legislation regulating the AEO institution was used; An analysis of scientific literature and existing data from open AEO Registers was carried out. Methods of scientific knowledge, system analysis (deduction, induction, analysis, synthesis), graphic and statistical methods, systems approach were used; methods of monographic, statistical and comparative analysis, generalization and interviews were used. results and scientific novelty of the study. The work focuses on the study of the terms underlying the AEO institution. According to the author, the term should more accurately reflect the purpose and essence of its creation. The legal regulation of the AEO institution requires a new rethinking, with prospects for the development of the institution, as laid down in the standards of the World Customs Organization, from the understanding of AEOs as national companies that have a number of simplifications when performing customs operations, to the understanding of AEOs as organizations — links in the supply chain of products between AEOs of other countries, provided they all meet trade and safety standards. A set of proposals for the development of the AEO Institute has been formed. Conclusions. The proposals concern clarification of terminology and proposals for improving the regulatory framework, in particular the development of simplifications. The federal customs services of the EAEU countries may use the provisions of this article when developing legal regulation for the development of the AEO institution. The degree of elaboration varies from a conceptual idea to the proposal of specific amendments to articles of laws.
Purpose
– The purpose of this paper is to develop a method to measure the difficulties of items required to achieve Authorized Economic Operator (AEO) validation and investigated companies’ abilities ...to obtain AEO certification based on an empirical analysis of 201 supply chain-related companies in Taiwan.
Design/methodology/approach
– The Rasch model was applied to convert the ordinal raw data collected from questionnaire surveys into values on an interval scale to measure companies’ abilities and item difficulties for AEO validation. The model was estimated using WINSTEP, which is an iterative computer program.
Findings
– The study results show that self-risk assessment and the formulation of security policies are the most difficult items to accomplish for AEO validation, whereas establishing security facilities is the easiest task to accomplish. Additionally, a company’s ability to obtain AEO validation was found to be positively correlated with a company’s turnover volume and its number of staff.
Research limitations/implications
– This research focusses on supply chain-related companies in Taiwan. Thus, the findings may not be transferable directly to other companies, circumstances, or countries.
Practical implications
– Using the Rasch analysis, both company’s abilities and item difficulties could be measured numerically and compared meaningfully. The study results could be used as references for the government to create polices to guide companies to meet the requirements of AEO validation in the future.
Social implications
– According to the study results, only 43.28 percent of the respondent companies have sufficient confidence to completely comply with all 26 security items for AEO validation; this implies that AEO validation criteria should be adjusted or some programs should be provided by the government to improve companies’ abilities for AEO validation, if the government genuinely wants to effectively encourage companies to obtain AEO certification.
Originality/value
– This study introduced a method to estimate items’ difficulties and companies’ abilities for AEO validation with values on a consistent interval scale. Thus, a comparison between companies’ abilities and items’ difficulties could be graphically illustrated. The results of this study provide a useful tool to investigate whether the AEO validation criteria are appropriate for the potential companies that can apply for AEO validation.
Purpose
The purpose of this paper is to examine the impact of financial investment (FI) in Authorized Economic Operator (AEO) certification on performance of Korean logistics companies through public ...and private partnership (PPP) and trade facilitation (TF).
Design/methodology/approach
Questionnaire survey was conducted to collect the data for this study, out of which 285 were adopted for the analysis using structural equation modeling for quantitative analysis. Also, it is based on professionals in Korean logistics companies that are AEO certified only.
Findings
FI on AEO certification had positive impacts on performance via PPP, while TF variable had no significant impact on the overall performance.
Research limitations/implications
This study focuses on the FI in AEO certification and its impact on performance in Korea. There should be more quantitative and confirmatory research on other countries with AEO certification to validate the findings of this study. It may be possible to generate contrary findings in different economies or countries.
Practical implications
These findings imply that public managers should focus more on TF aspects of the program with the Mutual Recognition Agreement with major trading partners and growing economies around the world in order to make the AEO program more popular and global with supply chain members overseas.
Originality/value
This study has offered original discovery and practical, academic implications for AEO program in terms of testing and suggesting factors provided by previous studies as a confirmatory and quantitative research.
Evaluation of the reliability of enterprises engaged in the foreign economic activity and simplifying of Customs procedures have become a relevant issue in the context of globalization. The ...capabilities and preferences of the “Authorized Economic Operator” status are the cause of a new challenge for managers of enterprises – creation of an internal control system to ensure a systematic monitoring of the conditions of Customs compliance standards of reliability and safety, which would allow identifying risks of loss of the “Authorized Economic Operator” status. The purpose of the scientific paper is to improve the internal control system of an enterprise engaged in foreign economic activity in the process of obtaining and saving the “Authorized Economic Operator” status in accordance with the international Custom requirements for safety and reliability. Methodology. The research is based on the methods of logical and analytical modelling of the impact assessment of individual factors on the value of the generalization indicator. The results are tested on the internal accounting data of the existing machine-building enterprises. Results. The paper shows the results of adapting the concept of COSO to the system of internal control of the foreign economic activity of the enterprise in the process of obtaining or retaining the “Authorized Economic Operator” status. The internal control system within the concept of COSO should ensure the achievement of the objectives – operations, reporting, and compliance. The criteria for estimating the objective “compliance” for an enterprise engaged in foreign economic activity can be an integral indicator of compliance. Value/originality. It is suggested to perform internal control of an enterprise’s compliance with Customs requirements based on the analysis of deviations of the compliance integral indicator. Practical implications. The result of control is to perform a steady in-crease in the integral index or stable maintenance of the already achieved indicator that will allow a company to maintain the “Authorized Economic Operator” status and perform foreign economic activities with simplified procedures. The indicators of total negative deviations and relative potential of rating are proposed in the paper. Total negative deviations by factors determine the degree of loss of quality characteristics of a company. The indicator of relative potential rating determines the percentage increase in the rating. Results of deviations evaluation by the blocks of the integral index of compliance will allow determining the certain aspect of a company activity, which did not meet Customs standards for the current period, and a responsible person who did not take care about the fulfilment of requirements of Customs standards, which introduces the risk of loss (non-receipt) of the “Authorized Economic Operator” status.
In order to facilitate international transactions of goods, the simplification of customs control procedures was at the heart of the tests defined in this context. However, the audit and control of ...these operators remains a concern for customs services; several avenues of research have sought to find solutions in this regard. It is around information systems that customs services should focus their efforts and enhance. The objective was to control the flow of goods within international logistics chains using a risk management approach. This research emphasizes the importance of the Logistics Information System "LIS" of companies throughout the international supply chain process. This work explains through the case of the approved economic operator 'AEO', how cooperation between customs authorities and the private sector can be beneficial for the different parties within the framework of a relationship of mutual trust. The exploitation of data from different public and private actors surely strengthens the work of customs control across borders, which allows the fluidity of transactions.
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