AUTHORIZED ECONOMIC

OPERATOR PROGRAMME

JAMAICA CUSTOMS AGENCY

Presenter: Karen Wilson

3 Pillars of SAFE Framework of Standards Customs

to

Customs

• Maximize the security and facilitation of the international trade supply chain.

• Customs of data from the exporter and by the carrier for security risk-assessment

Customs

to

Business

• Creation of an international system for identifying private businesses that offer a high degree of security guarantees in respect of their role in the supply chain. These business partners should receive such partnerships in the form of expedited processing and other measures

Customs

to

Other Govt. &

Inter-Govt.

• Ensure that the government response to the challenges of supply chain security is both efficient and effective, by avoiding duplication of requirements and inspections, streamlining processes, and ultimately working toward global standards that secure the movements of goods in a manner that facilitates trade.

WCO SAFE Framework of Standards

to Secure & Facilitate Global Trade

• The SAFE Framework of Standards has four (4) core elements

HARMONIZING ADVANCE

ELECTRONIC CARGO INFO

EMPLOYING RISK MANAGEMENT APPROACHES

PERFORMING OUTBOUND

INSPECTIONS

BENEFITS CUSTOMS

PROVIDES TO BUSINESSES

INTRODUCTION

Economic operator: “A person who, in the course of his/her business, isinvolved in activities covered by Customs legislation”(WCO SAFE FRAMEWORK). For example:

• Manufacturers• Exporters• Freight forwarders• Warehouse keepers• Customs agents• Carriers• Importers• Port operators

DEFINITON OF AEO

• “A party involved in the international

movement of goods in whatever function

that has been approved by or on behalf of

a national Customs administration as

complying with WCO or equivalent supply chain security standards” (WCO SAFE FRAMEWORK).

Purpose of the Programme

• Align process flows with international best practices

• Mitigate risks along the supply chain, thereby deploying resources to high risk areas

• Possibility for signing Mutual Recognition Agreements (MRA) with other countries

6

Revamping Process• Island wide sensitization sessions

• Development of an AEO Manual for Officers

• Introduction of an AEO Committee

• Introduction of the Inter Agency- Committee & Private Sector Committees

• Development of online application

• Pilot Project included 15 Cos. (Small , Medium & Large)

• Processing of applications & Risk Assessments

• Validation Process

7

STAKEHOLDERS OF THE PROGRAMME

PORT

AUTHORITIES

SHIPPING LINE

SHIPPING LINE

CUSTOMS BROKERS

MANUFACTURERS

EXPORTERS

CARRIERS

LOGISTICS OPERATORS

Serve the international trade entities

in a more professional & customer

oriented manner

Reward compliant traders by

making the clearance processes

smoother & efficient

Encourage & develop a working

partnership with the

international trade entities.

AEO PROGRAMME

• Full container loads (FCL) only

• Imports a minimum of six (6) containers per year

• Exports a minimum of one (1) container per year.

• Status valid for 3-year period

• Demonstrated Compliance with JCA Act & Regulation as well all other Govt. Agencies involved in international trade.

BENEFITS OF AEO PROGRAMME

International trade

contributes

to economic growth &

encourages investment

11

Exposure toother markets

to improvecompetitiveness

Support economic

and social

protection

Secure and facilitate

global trade

Encourages cooperative

arrangements between

Customs and other Gov’t.

agencies

MutualRecognition Agreements:

faster movement of goodsthrough

3rd countryBorders

BENEFITS TO CUSTOMS & GOVT. AGENCIES

BENEFITS TO CUSTOMS &

GOVT.

AGENCIES

Enabling timely & accurate information, allocation of resources

to risky consignments & improve controls

Compel govt.

agencies to modernize & organize operations

Creating a working partner relationship with

private sector

Establish

Agency-to-Agency

network

arrangements

Benefits to Exporters

• Recognized worldwide as safe, secure and compliant business partners in international trade;

• Lower risk score in risk analysis systems when profiling;

• If physical controls are to be conducted AEO's will be given priority treatment;

• Mutual recognition of AEO programmes under Joint Customs Co-operation Agreements could result in faster movement of their goods through third country borders;

EXPECTATIONS OF AEO

• Declare Accurate Values• Secure their Business Premises• Comply With revenue payments• Comply with ALL Government Agencies –

Revenue, Health and Safety etc.• Provide Documents to JCA & all Govt. Agencies

and access to premises when required• Work with Post Clearance Audit to create a level

playing field• Sign a memorandum of understanding (MOU)

agreeing to certain terms and conditions and fulfilling certain obligations.

Consequences of AEO

• Reduced theft and losses;

• Fewer delayed shipments;

• Improved planning;

• Improved customer loyalty;

• Reduced security and safety incidents;

• Reduced crime and vandalism;

• Improved security and communication between supply chain partners.

Consequences of AEO

• Certification may be viewed as a fundamental part of managing supply chain risks, and gives companies a competitive edge by demonstrating their commitment to managing risks;

• Preparing for AEO means taking an end-to-end look at your business, connecting otherwise disparate departments to integrate supply chain processes and identify strengths and weaknesses with the ultimate goal to streamline workflows and increase efficiency, introduce best practise procedures and solutions, and achieve comprehensive supply chain transparency, security and compliance

Committees Introduced: AEO Committee

Governing of the AEO Programme

Recommendations regarding application

Recommendations regarding status

17

Committees Introduced: Private Sector Committee

PSCCBFFAJ/JSCB

Brokers Ass.

JMA

Jamaica Manufacturer

Ass.

JCC

Jamaica Chamber of Commerce

PSOJ

Private Sector Org. of Jamaica

JEA

Jamaica Exporters

Ass.

AEOs

18

Inter-Agency Committee(IAC)

The Inter-Agency Committee is comprised of all the Governmental Agencies involved in the international trade as it relates to the issuance of permits, product compliance and standards as well as the examination of animal products, fruits & vegetables and live animals being imported.

• Coordination between Agencies to facilitate first in line for AEO’s

• Act as Point of contact for the respective Agency

• Improve Risk Mgt. through exchange of information

• Enhance controls due to expertise of each member

19

Committees Introduced: IAC

• Ministry of Health (MOH)▫ Public Health Division ▫ Pharmaceutical Division

Ministry of Industry Commerce Agriculture & Fisheries (MICAF)▫ BSJ – National Compliance & Regulatory Authority▫ Food Storage & Prevention of Infestation▫ Plant Quarantine / Produce inspection▫ Veterinary Services▫ JAMPRO – Jamaica Trade & Investment▫ Trade Board Ltd

20

AEO Account Officers

• Each AEO is assigned an Account Officer who serves as the main point of contact with Customs and other trade regulatory bodies.

• Conducts validations and monitoring

• Assists the AEO

21

AEO PROGRAMME: VALIDATIONThe validation exercise is the process which establishes:

Whether or not there is congruence between an organizations documentation and their processes;

Whether or not an applicant is eligible for receiving the AEO status

AEO PROGRAMME: VALIDATION• Initial Validation

• 60 dy. validation follow-up (60dys after the initial findings meeting)

• 90dy validation follow-up(30 dys after the 60dy follow-up)

Final report prepared for AEO Committee recommendation & Commissioner’s approval

AEO PROGRAMME:

SECURITY REQUIREMENTS

• Designated officer to over see AEO Programme requirements

• Business Partner Security & Risk Assessment

• Container Security

• Personnel Security

• Information Technology Security

• Physical Access Security

• Storage and control of Raw Materials (Manufactures)

Develop Document Implement

MANAGEMENT AND ADMINISTRATION OF THE SECURITY CONTROL SYSTEM

Clear security

policies & objectives:

Business partner

Containers

Premises

Physical access controls

Clear security

policies & objectives:

Personnel

Information technology

Training in security awareness

Business Partner Security

A Business Partner is the person/organization providing a service or commodity to the AEO, and whose activities have the potential to affect the security of the supply chain

Container Security

Seals must meet or exceed thestandard for high security seals

PAS ISO 17712 HIGH SECURITY SEALS

Containers must be properly inspected and the report documented

Personnel Security

Recruitment & other HR policies must be in place to mitigate risks that may be faced by the company, and which could threaten the security of the supply chain

Information Technology Security

Policies must be in place to secure electronic data and information management systems; and to guard against or treat with misuse/abuse

Physical Security

•Fencing

•Entrances and Exits

•Building structures

•Control of locks and keys

•Security system

•Lighting

•Parking and lockers

Security Training & Awareness of Threats

Employees must be made aware of the policies & procedures governing the report of suspicious activities to relevant authorities

Suspension or Revocation of AEO Status

• Disallowing a JCA officer / Regulatory officer from:

▫ Entering premises

▫ Examining a container

▫ Examining books and records

• Breach of either the JCA or other Govt. Agency Act or Regulations

• Not fulfilling the AEO security requirments and obligations as per the MOU

Mutual Recognition Agreements (MRA)

• Mutual recognition is a broad concept whereby an action or decision taken or an authorization that has been properly granted by one Customs administration is recognized and accepted by another Customs administration

MRA’s requirements

• The AEO program has to be compatible and conform to the standards and principles set out in the SAFE Framework

• There has to be an agreed set of common standards that include sufficiently robust “action” provisions for both Customs and AEOs;

• Standards are applied in a uniform manner so that one Customs administration may have confidence in the authorization of another;

• If the certification process is delegated to a designated authority by an authorizing Customs administration, there shall be an agreed upon mechanism and standards for that authority;

• Legislation to enable the implementation of a mutual recognition system is in place.

MRA’s Relate to

• Authorization:

▫ Customs should agree on mutual recognition of AEO status

• Advance Electronic Information :

▫ Economic operators should also benefit from mutual recognition of digital certificates, allowing the economic operator to submit all electronic messages to those Customs administrations having agreed to recognize this certificate.

• Targeting and Communication :

▫ Customs should provide for joint targeting and screening, the use of standardized sets of targeting criteria, and compatible communication and/or information exchange mechanisms