The East African Community - OBR · 2017-11-06 · Act (EACCMA) 2004 and the Compliance and Enforcement Regulations. 1.5 AEO Type The Regional AEO applicant shall be assessed using

TheEastAfricanCommunity

November2015

AUTHORISED

PROCEDURE

REGIONALAUTHORISEDECONOMICOPERATORPROCEDUREMANUAL

RegionalAuthorizedEconomicProcedureManualVersion10Page2of31

TableofContentsDEFINITIONS ....................................................................................................................................... 5

1 INTRODUCTION ............................................................................................................................. 7

1.1 BACKGROUND .............................................................................................................. 7

1.2 SCOPE ........................................................................................................................ 7

1.3 WHO CAN APPLY .......................................................................................................... 7

1.4 LEGAL PROVISIONS ........................................................................................................ 8

1.5 AEO TYPE ................................................................................................................... 8

2 BENEFITS MANAGEMENT ............................................................................................................... 8

2.1 IMPORTERS/EXPORTERS/MANUFACTURERS ....................................................................... 8

2.2 CUSTOMS AGENTS ........................................................................................................ 9

2.3 TRANSPORTERS .......................................................................................................... 10

2.4 WAREHOUSE OPERATORS ............................................................................................ 10

3 ELIGIBILITY REQUIREMENTS ......................................................................................................... 11

3.1 COMPANY DETAILS ..................................................................................................... 12

3.2 RECORD OF COMPLIANCE ............................................................................................. 12

3.3 MAINTENANCE OF RECORDS ......................................................................................... 13

3.4 FINANCIAL SOLVENCY .................................................................................................. 13

3.5 SECURITY AND SAFETY STANDARDS ................................................................................ 14

3.6 VOLUME OF BUSINESS ................................................................................................. 14

3.7 NATURE OF GOODS TRADED ......................................................................................... 14

3.8 TRADE PARTNERS ....................................................................................................... 15

4 THE AUTHORISATION PROCESS & PROCEDURES ........................................................................... 15

4.1 INPUTS / REQUIREMENTS ............................................................................................. 16

4.2 PREPARATION AND SELF‐ASSESSMENT ............................................................................. 16

4.3 APPLICATION FOR AUTHORISED ECONOMIC OPERATOR STATUS ........................................... 17

4.4 ACKNOWLEDGEMENT .................................................................................................. 17

4.5 VALIDATION ............................................................................................................... 17

4.6 AUTHORISATION ......................................................................................................... 18

4.7 ACTIVATION ............................................................................................................... 19

5 POST AUTHORISATION MANAGEMENT ........................................................................................ 19



5.1 RE‐AUTHORISATION .................................................................................................... 19

5.2 DE‐AUTHORISATION .................................................................................................... 20

5.3 APPEAL ..................................................................................................................... 20

5.4 OUTPUTS .................................................................................................................. 20

6 APPENDICES ................................................................................................................................ 21

6.1 APPENDIX 1: AEO APPLICATION AND SELF‐ASSESSMENT FORM .......................... 22

6.2 APPENDIX 2: REGIONAL AEO ACCREDITATION PROCESS ...................................... 30



AcronymsAEO –AuthorisedEconomicOperator

EAC ‐EastAfricanCommunity

EACCMA –EastAfricanCommunityCustomsManagementAct

ECTS –ElectronicCargoTrackingSystem

PCA –PostClearanceAudit

SAFEFramework –SAFEFrameworkofStandards‐tosecureandFacilitateglobaltrade

SOP –StandardOperatingProceduresWCO –WorldCustomsOrganisation



Definitions

AuthorizedEconomicOperator AEO is defined in the WCO SAFE Framework of Standards as 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.

Self‐managementofbondedwarehouse. Self‐managed bonded warehouse is a facility extended

to a warehousing operator where the responsibilities of a Customs Officer are delegated to the

bonded warehouse operator



Purpose

This manual is meant for use by Customs officers of the EAC CustomsAdministrationsandreferencebyCrossBorderRegulatoryAgenciesandthetradingcommunitywithintheEAC.TheStandardOperatingProcedure(SOP)manualwillbedevelopedtoprovidedetailedstep‐by‐stepprocessofthisproceduremanual.

Approval

ThisRegionalAEOSchemeisherebyapprovedforimplementationinEAC.



1 IntroductionThe Authorised Economic Operator program is derived from the WCO SAFEFramework of Standards. The SAFE Framework was adopted by the DirectorsGeneralofCustomsrepresenting themembersof theWorldCustomsOrganisation(WCO)attheJune2005annualCouncilSessionsinBrussels.InJune2015,theWCOCounciladoptedtheupdatededitionoftheSAFEFramework2015.

TheCustomsAdministrationsofBurundi,Kenya,Rwanda,TanzaniaandUgandaaremembers of the WCO and each of them have submitted a letter of intent toimplement the WCO SAFE Framework. The EAC Partner States CustomsAdministrations adopted the SAFE framework and agreed to implement the AEOprogramasaregionin2007.

1.1 BackgroundThe 21st century has been characterized by globalization of trade, tremendousgrowthinvolumesofimportsandexportswithintheEastAfricanregion.Customsisfaced with an ever increasing demand for faster clearance and fewer tradebottlenecks which have to be balanced against a need to check all tradedconsignments100%.

The introduction of Authorised EconomicOperators (AEO) aims to fundamentallychange the relationship between businesses and the Customs Administrations byimplementingpreferentialtreatmenttothosebusinessesthatareestablishedtobecompliant throughastructuredassessmentof risk (authorisation).TheAEOsshallbenefitfromsimplificationofproceduresand/orfacilitationwithregardtoCustomscontrolsrelatedtosecurityandsafetythroughouttheEACRegion.

1.2 ScopeThis Manual describes processes and procedures for implementing the RegionalAEO program as envisaged in theWCO SAFE Frameworkwithin the East AfricanCommunityPartnerStates.TheimplementationoftheAEOprogramshallbeinlinewiththeSingleCustomsTerritorybusinessprocesses.

1.3 WhocanapplyAnyeconomicoperatorthatisestablishedinatleastoneoftheEACPartnerStates,involvedintheinternationalsupplychainandcarriesoutCustomsrelatedactivityinthe EAC can apply for the Regional AEO status irrespective of the size of thebusiness.Anapplicantwillbeassessedinlinewiththerespectivenatureofbusiness.



Thisincludes; Exporters Transporters Importers Freightforwarders CustomsAgents Bondedwarehouseowners Manufacturers Carriers Ports,Airports,Terminaloperators

Apersonmayapplyforauthorisationunderoneormoreoftheseclientcategories.Iftheapplicationforauthorisationisapproved,authorisationwillrelatetothespecificclientcategoriesthattheclienthasqualifiedfor.

1.4 LegalprovisionsTheAEOprogramderivesitsmandatefromtheprovisionsofTradeFacilitationandCustomsmodernisation under the East African Community CustomsManagementAct(EACCMA)2004andtheComplianceandEnforcementRegulations.

1.5 AEOTypeTheRegionalAEOapplicantshallbeassessedusingthecriteriabelowandthestatusshallqualifytheAEOforCustomssimplification,SafetyandSecurity.

2 BenefitsManagementThis chapter defines the identified Regional AEO benefits and how they will beadministered. The benefits to be enjoyed by a regional AEO are divided into fourclient categories depending on the nature of business. The client shall enjoy thebenefits for the category/categories that they are authorised for. These benefitsshall apply across the EAC Region. The Regional AEO shall be uniquely identifiedthroughouttheclearanceprocess.

2.1 Importers/Exporters/Manufacturers

2.1.1 Expeditedprocessingofentries/declarations–allAEOdeclarationswillbegivenprioritythroughoutthewholeclearanceprocess.Thiswillinclude;



2.1.1.1 Automaticpassingofdeclaration.Once all conditions for lodgement of a declaration are fulfilled by the AEO, thedeclarationshallbelodgedandselectedBLUElaneandthereaftersystemreleased.

2.1.1.2 Nophysicalordocumentexaminationexceptforrandomorriskbasedinterventions/exceptionalcases.

WhereanAEOdeclaration is randomlyselected to theredoryellow lane,prioritytreatmentshallbegivenduringexamination.Theoperatorshallalsohavetheoptiontochoosethelocationforthephysicalexamination.

2.1.1.3 ECTSrequirementwaiverwhereapplicable.IncaseswheretheECTS isrequired,operatorshallalsohavetheoptiontochoosewhethertouseitornot.

2.1.1.4 Expeditedpaymentofrefundclaim.Priority shall be given inprocessingof the refund claims.Where applicable, someprocedurescanbesimplifiedfortheAEO.

2.1.1.5 ReducedCustomssecuritywhereverapplicableSubjecttorelevantprovisionsoflaw/regulations,considerationforalowerCustomsSecurityonacase‐to‐casebasiswillbeforanAEO.

2.2 CustomsAgents

2.2.1 GuaranteedrenewalofCustomsagent’slicenseTherenewaloftheAEOCustomsAgent’s licenceshallnotbesubjecttothevettingprocessbut theAEOshallberequiredtomakepayment for licencing feesandanyotherrelatedpayments.

2.2.2 PrioritytoparticipateinCustomsinitiativesAEOshallbegivenfirstopportunitytotakepartinnewtradefacilitationinitiativeswithinRevenueAuthorities.



2.2.3 PrioritytreatmentincargoclearancechainAnyconsignmentdeclaredbyanAEOCustomsAgentshallbeprocessedbeforethenon‐AEOdeclarations.

2.2.4 WaiverofmovementbondforAEOAEO goods in transit to thewarehouses shall be exempted frommovement bondrequirements.ThisshallonlyapplytoconsignmentswheretheImporter/Exporter,CustomsAgents,andthetransporterareALLAEOs.

NB:Thisbenefitshallnotabsolve theClearingAgent fromany liability in theeventthattheconsignmentislostorshort‐landed.

2.3 Transporters

2.3.1 GuaranteedrenewaloftransitgoodslicenceandanyotherlicencesissuedbyCustoms.

TherenewaloflicencesissuedbyCustomsshallnotbesubjecttothevettingprocessbut the AEO shall be required tomake payment for licencing fees and any otherrelatedpayments.

2.3.2 ExemptionfromthemandatoryuseofCustomsElectronicCargoTrackingSystem(ECTS).

In caseswhere theECTS is required,AEOwill enjoy thebenefitofoptionaluseofECTS.

2.3.3 Priorityclearanceattheborders.Subject to adequate adequacy, Consignment transported by AEOs will enjoyexpeditedborderprocesses.

2.4 WarehouseOperators

2.4.1 Self‐managementofbondedwarehouseSelf‐managed bondedwarehouse is a facility extended to awarehousing operatorwhere the responsibilities of a Customs Officer are delegated to the bondedwarehouseoperator.HowevertheWarehouseOperatorisrequiredtoadheretotheprovisions of the law and any other conditions that may be given by the



Commissioner. This facility is extended to AEOs to enhance flexibility of bondedwarehouse operations in terms of time and cost. The status of the AEO shall berecognisedacrosstheEACRegion.

2.4.2 GuaranteedrenewalofWarehouseOperator’slicenseThe renewal of the AEOWarehouseOperator’s licence shall not be subject to thevettingprocess but theAEO shall be required tomake payment for licencing feesandanyotherrelatedpayments.

2.4.3 ReducedCustomssecuritywhereverapplicableSubjecttorelevantprovisionsoflaw/regulations,considerationforalowerCustomssecurityonacase‐to‐casebasiswillbeforanAEO.

Itisimportanttonotethatintheprocessofdeliveringtheabovebenefits;

1. Dedicatedservicepointatallcustomsoffices/clearancepoints.AnofficershallbeassignedtohandleAEOconsignmentforfasterclearanceatallCustomsoffices.AclearsignageshallbeputupatCustomsOfficestoguideAEOswheretheywillbeserved.

2. Allstakeholdersshallneedtobe involved infacilitatingclearanceofAEO(Port

Authorities,Shippinglineandrelevantstakeholders)

3 EligibilityRequirementsThischapteroutlinestheEligibilitycriteriafortheRegionalAEOScheme.Eligibilityrequirements are conditions, standards and measures which shall be used inevaluating applicants for Authorized Economic Operator status in the EAC. AnapplicantMUSTbealegalentityincorporatedwithintheEAC.

To be eligible for authorization, the Commissioner of customs may require theapplicanttoverifyanystatementinanapplication.Theapplicantshouldbeabletoprovideinformationpertainingtoallofthefollowingoranyother;

i. Companydetailsii. Recordofcomplianceiii. Maintenanceofrecordsiv. Financialsolvency



v. Securityandsafetystandardsvi. Volumesofbusinessvii. NatureofGoodstradedinviii. Tradepartners

Thedetailledrequiredinformationisdecsribedinthesectionthatfollow.

3.1 CompanyDetailsi. Companyprofiles;whichshouldindicatetheindustrialorprofessional

affiliationsandpositionoftheofficialresponsibleforcustomsmattersintheorganizationstructure.

ii. Contactpersonsandtheirrespectivecontactdetailsiii. Natureofbusinesswhichshouldbeinlinewitheligibilityrequirements.iv. EmployeeProfile;keyemployeeswithknowledgeandexperienceincustoms

matters.

3.2 RecordofComplianceThe applicant should not have contravened any laws, rules and regulationspertainingtoCustoms,DomesticTaxesandallrelevantGovernmentAgenciesforaperiodof3yearspriortoapplicationforauthorisation.Theapplicantshouldprovide,and/ordemonstratethefollowing;i. Theapplicantshouldhavecompliancehistoryofatleast3years;

a. Withnorecordoffraudorattemptedfraud.b. With a tolerable number of technical errors/mistakes and evidence of

correctiveaction.c. Withevidenceofself‐compliancechecks&voluntarydisclosured. Presenceofandadherencetoaprofesionalcodeofconducte. Withnotaxarrears(taxespasttheduedate).f. Withevidenceofcompliancewithallrelevantregulations.

ii. The applicant should indicate whether the application is new or Re‐

application.IftheapplicantheldpreviousAEOstatusholder,checkiftheclientwasderegisteredbeforeandforwhatreasons.

iii. Re‐applicationofarevokedAEOstatusshallbesubmittedafter threeyears(except where the said revocation was effected at the request oftheauthorizedeconomicoperator).



iv. Theapplicantmustnothavebeenconvictedofanycriminaloffence.

v. Theapplicant’srepresentative/agentincustomsmattersmustnothavebeen

convictedforanycriminaloffence.

3.3 MaintenanceofrecordsThe applicant shall maintain timely, accurate, complete and verifiable recordsrelatingtoitscustomstransactions.

The applicant must demonstrate that the computer systems,the organizationalinternal operational procedures and processes will ensure compliance. In thisregardthereforethefollowingshallbeexamined:

i. Automationofcompanyprocessesa. Electronicregistersb. Stockmovementsc. Inbound&outboundprocesses

ii. Availabilityofauditedreportsbyqualifiedauditorsiii. Easeofaccesstocompanyrecordsbycustomsiv. Integrated accounting systems consistent with the generally accepted

accountingprinciplesv. Internalcontrolproceduresvi. Maintenance/archivingofrecordsforaspecifiedperiodinlinewithEACCMA.vii. Adequate InformationTechnology(IT)securitymeasures toprotectagainst

accessbyunauthorizedpersons

3.4 FinancialSolvencyTheapplicantmustdemonstrateadequatefinancialstanding.Theapplicantshallbedeemed to havemet the conditions of solvency if it can be proven for the past 3years.

The applicant must provide evidence(financial statements) indicatinga goodfinancial standing sufficient to fulfill its commitments with regard to the type ofbusiness. The applicantmust have fulfilled his obligations regarding payments ofCustomsduties,taxesandotherchargesforlastthreeyears.

AEOshallmaintainandprovidedocumentstodemonstratetheirfinancialsolvency,which may include, profit and loss statements and balance sheets; declaration of



insolvencyproceedings, if any, and statements frombanks,financial institutionsorNationalTaxAuthority.

3.5 SecurityandSafetyStandardsThe applicant must demonstrate a high level of awareness on security andestablished safety measures, internally and in its business activities with clients.Understandingand implementationof safety and security controlsmust extend totheapplicantspersonnel.Theapplicantmustprovideevidenceof;i. Internalcontrolstoembodysafetyandsecurityproceduresii. Premisessecurityiii. Employeesissuedwithidentification.iv. Routineprocedurestoensureintegrityofcargov. Administrativeproceduresonhandlingofcargovi. Ownership&maintenanceofcargostoragefacilities.vii. Sealingandtrackingofcargoviii. Proceduresforinspectingcargoix. Entryrestrictiontocargoareasx. Supervisionofloading&offloadingofcargoxi. Conveyancesecurityxii. InformationandITsecurityxiii. Measuresforcrisismanagementandincidentrecoveryxiv. Imposingsecurityrequirementsontradepartnersxv. Regularselfassessmentofthesecuritymanagementsystemxvi. Contractualagreementstocontainelementsofsafety&security

a. Employmentpolicytoincludesecuritychecksonemployeesb. Presenceofsecurityawarenessprogrammes

3.6 VolumeofbusinessThe volume of the applicant’s business will be used to gauge eligibility (Riskassessment) for authorisation. Whereas specific requirements may vary, thefollowingshallbeexaminedtoestablishtherelevantposition;

i. Statisticsontheoperator’sbusinessoperationii. Statisticsoncustomsmattersiii. Fiscalstatistics

3.7 NatureofGoodsTradedThe applicant shall be assessed as to thenature and flowof goods traded in. Theassessmentshalltakeintoaccount;



i. CustomsProceduresinrespectofthenatureofgoods,.i.e.a. Tariffclassificationofthegoods,b. Fiscalaspectsc. Non‐fiscalaspectsd. Originofthegoodse. Valueofthegoods,f. Legalrequirements

ii. Internal aspects with regard to control over stockmovement shall also be

examined;a. Reconciliationofmovementofgoods(ordered,entered&received)b. Storagec. Productiond. ChainofCustodye. Outgoingflowofgoods(deliveryfromwarehouse,shipment,transfer).

3.8 TradePartnersThe applicant shall have to prove to the satisfaction of Customs that its tradepartners demonstrate high level of awareness of security and established safetymeasuresby;

i. Where applicable,when entering into negotiated contractual arrangementswitha tradingpartner,encouragetheothercontractingparty toassessandenhanceitssupplychainsecurityand,totheextentpracticalforitsbusinessmodel,includesuchlanguageinthosecontractualarrangements.

ii. Establishingasystemofreviewingrelevantcommercialinformationrelatingtotheothercontractingpartybeforeenteringintocontractualrelations.

iii. The AEO applicant shall furnish Customs with documentary evidence todemonstrateitseffortstoensurethatitstradingpartnersaremeetingtheserequirements.

4 TheAuthorisationProcess&ProceduresThis chapter describes the complete authorisation process, from application toAuthorisation.ItshouldbenotedthattheAuthorisationprocesslogicallyflowsfromand alongside the regional RiskManagement and Post Clearance procedures. It is



advised that the user of this document should be familiar with those otherproceduresastheypertaintotheAuthorisedEconomicOperator.

Thisprocessbeginswhen the formal conditionsand thecriteriaof theAuthorisedEconomicOperatorhavebeenpublished.

AgraphicalrepresentationoftheprocessflowisincludedasAppendix2.

4.1 Inputs/requirementsThisprocesshasthefollowinginputsatvariousstages;

ChecklistforCompliance AEOApplicationandSelf‐AssessmentFormsandattachments Criteria RiskProfiles(NationalandRegional) OffenceHistory PostClearanceAuditReports NationalSecurityProfiles GovernmentAgencyPublishedReports RegionalStrategicPlan PromotionalBrochures FinancialViability–(RecordKeeping/BankStatements) CustomsIntegrityCompendium Certifications/authorizationsgrantedbyotherAgencies. AEOstatusinanyothercountry

4.2 Preparationandself‐assessment

4.2.1 TheapplicantshallobtaintheAEOApplicationandSelf‐AssessmentFormfromtherespectiveCustomsAdministrationsormultipurposeonlineweb‐portalasmaybeavailableatthetime.

4.2.2 Theapplicantshallcarryoutaself‐assessmentagainstthesetcriteriaandonlysubmittheapplicationtotheCommissionerintherespectiveCustomsadministrationsofthepartnerstatesifhe/shemeetsthecriteria.

4.2.3 TheapplicantwillbetakenthroughthesensitizationprocessbytheAEOOfficetoobtainmoreinformationabouttheprogramme.



4.3 ApplicationforAuthorisedEconomicOperatorstatus

4.3.1 TheofficerreceivesacompletedAEOApplicationandSelf‐assessmentFormandalltheotherrequireddocumentsfromtheapplicant.

4.3.2 Theofficershallverifythattheapplicationiscomplete,correctandvalid.

4.3.3 Wheretheapplicationisincomplete,theofficershallrecordthecompanydetailsandnotifytheapplicantofthemissinginformationwithin14days.

4.3.4 Wheretheapplicationiscomplete,itproceedsforacknowledgement.

4.4 Acknowledgement

4.4.1 Theofficershallrecordthedetailsinthereceivingregister

4.4.2 Theofficershallissueanacknowledgementwithauniquereferencenumbertotheapplicantandnotifytheapplicantwithin14days.

4.4.3 Theofficershallcompilealistofapplicationformsreceived,batchthemandsubmittheformstothevalidationcommittee.

4.5 Validation

4.5.1 Thevalidationcommitteeshallobtaintheinformationregardingthecomplianceoftheapplicantandconsulttheotherpartnerstatestoestablishwhethertheymeetsetcriteria.

4.5.1.1 Wheretheapplicationdoesnotmeetthesetcriteria,alistofunsuccessfulapplicantsshallbecompiled,resultscommunicatedtotheCommissionerandapplicantsnotified.

4.5.1.2 Wheretheapplicationmeetsthecriteria,validationshallbecarriedout



4.5.2 Thevalidationcommitteeshallpreparetheinspectionschedule,inspecttheapplicant’sbusinesspremises,collectrelevantdataandanalysethedataagainstdocumentsearliersubmitted.

4.5.3 TheAuditisconductedinaccordancewiththePostClearanceAudit(PCA)StandardOperatingProcedure(SOP)andareportoffindingssubmittedtotheapprovalcommitteewithrecommendations(refertothePCASOP)

4.5.4 Allinformationwillbestoredinaregionalinformationsystem.

4.5.5 TheapprovalcommitteeshallconsidertheauditreportandmakerecommendationstotheCommissioner.

4.5.5.1 Wherethefindingsaresatisfactory,theapplicationsaresubmittedtothecommissioner.

4.5.5.2 Where audit findings are unsatisfactory, the application shall be rejected andapplicantnotified.HowevertheapprovalcommitteemayconsiderputtingsomeoftheapplicantsontheComplianceImprovementplanforfutureconsideration.

4.6 AuthorisationThe Commissioner of Customs,

4.6.1 Shallnotifyunsuccessfulapplicant(s)statingthereasonsforrejection.

4.6.2 Shallinvitethesuccessfulapplicant(s)tosignanMOU.

4.6.3 ShallactivatetheApplicantsAEOstatusintheCustomsManagementSystem(Process4.7).

4.6.4 Shallsubmitthelistofapprovedapplicants(s)totheDirectorCustoms(EAC).

The EAC Director of Customs;



4.6.5 ShallinformalltheCommissionerofthesuccessfulapplicant(s)andrequestfortheirActivationintherespectiveCustomsmanagementsystems(Process4.7).

4.6.6 ShallissuetheapplicanttheRegionalAuthorizedEconomicOperatorathree(3)yearRegionalAEOcertificatebasedontheAEOcategory.

4.7 Activation4.7.1 The AEO shall be assigned a unique Identifier that will be recognized

throughouttheregion.4.7.2TheAEOstatusshallbeactivatedinallPartnerStateCustomsManagementSystems.

5 PostAuthorisationManagement5.0.1 The AEO Offices in the partner states shall periodically (every 3years)

conductareassessment.5.0.2TheAEOOfficesinthepartnerstatesinconjunctionwiththePostClearance

Auditunitshallconductareassessmentwhichwillincludepostclearanceaudit and incorporate information on the Regional data base, assembleevidence, evaluate and document the audit results, write a report andmakerecommendationstotheapprovalcommittee.

5.0.3TheAEOofficesinthepartnerstatesshallcarryoutAdhoc/Surprisevisits

to the operator’s premises to check if the compliance levels aremaintained.

5.0.4 The AEO Offices shall appoint Client Relationship managers to oversee

smoothrunningofthedaytodayAEOtransactions

5.1 Re‐authorisationWheretheoperatorisfoundcompliant,thevalidationcommitteeshallprepareareportof findingsandsubmit to theapprovalcommittee forreauthorisation.AcopyofthereportshallbeprovidedtotheAEOtogetherwiththerenewedAEOCertificate.



5.2 De‐authorisation5.2.1 Where the Operator has been found non‐compliant, depending on the

gravity of non‐ compliance the approval committee shall makerecommendations to the Commissioner for warning, suspension or de –authorization.

5.2.2 Where warning or suspension is recommended the Commissioner may

warn or suspend the AEO status for a period not exceeding 6monthssubject to correction of the noncompliance issues and notify theCommitteeonCustoms.

5.2.3 If the company fails to resolve the non‐compliance issues within the

6monthstheCommissionermayproceedtothenextlevelofaction.

5.2.4Wherede–authorisationisrecommendedtheCommissionershallnotifytheCommitteeonCustomstodeliberateanddecideonthecase

5.3 Appeal5.3.1WheretheOperatorwishestoappealagainstthedecisionabove,thenthey

maysubmitinwritingtheirappealtotheCommissioner.5.3.2 The appeal will be reviewed by the Commissioner and handled in

accordancewithPartXXoftheEACCMA.

5.3.3WheretheOperatordoesnotappeal inwritingwithinthestipulatedtimeframethede‐authorisationisupheld.

NOTE:Datashallbesenttotheregionalinformationsystem

5.4 OutputsThisprocesshasthefollowingmajoroutputs: AuthorisedEconomicOperators. Warned,SuspendedorDe‐authorisedOperators. Rejectedapplications. Forms,notices,listofcases,profiles,etc. Reports(performance,audit). Riskprofiles(new,old,updates). A fully developed and tested framework for national and regional AEO

Certification. Riskregister.



6 Appendices



6.1 APPENDIX1:AEOAPPLICATIONANDSELF‐ASSESSMENTFORM

AEOAPPLICATIONANDSELFASSESSMENTFORM

I would like to apply for accreditation to the Authorised Economic Operator (AEO)Programmethatyouoffer.

Itakecognisanceofalltheconditionslistedbelowsoastobepartofthisprogramme,andherebyconfirmmyunreservedadherencetothesaidconditions,namely:

a) Submission of the completedform does not automatically imply acceptance to thisprogramme

b)AsanAEOIshallcomplywithalllawsandregulationsundertheEastAfricanCommunityCustomsManagementAct,2004.

c)ThattheCommissionerofCustomsServicesmayrevoketheAEOstatusifIamfoundinviolationoftheconditionsandrequirementsforparticipationintheAEOprogramme.

d)BysubmittingthisapplicationIacceptthatinformationregardingmyoperationsmaybesharedwithotherCustomsadministrationsaswellasotherregulatoryagencieswithintheEAC.

e)AnyotherconditionsasmaybeimposedbytheCommissionerofCustomsServicesunderthisprogramme.

Date……………………………………………….______________________________________

«NameoftheSignatory»

______________________________________

«Title»

______________________________________

«SignatureandCompanystamp»



A.APPLICATION

1.CompanyInformation

CorporateName………………………………...………………………….……………………………………………………………

Legalstatus.……………………………………………………………………………………………………………….

PIN/TIN……..……………………………………………………………………………………………..………………

Postaladdress………………………………………………………………….…..……….………….………………….

Physicaladdress(pleasestate)Town……….………….………………….Street…………………………………………………..

Building…………………………………………………………Floor……………………………………………………

Phone:……………………………………………..Fax:……………………………………………………

E‐mail:.…………………………………….

NamesofDirectors/PartnersID/PassportNo.Signature

a)…………………………………………………………………………………..………………………

b)………………………….………….........…………………………………….………………………

c)………………………………………….…………………………………………………………………

d)…………………………………………………………………………………………………………

NatureofBusiness(tickappropriate)

Importer/Exporter LicensedClearingAgent Transporter Bonded

WarehouseOperator Other(specify………….…………..



ContactPersonSurname……………………………………………………………………………………………………………..

OtherNames………………………………………………………………………………………………………..

Title……………………………………………………………………………………………………………………..

Directphoneline…………………………………………………………………………………………………….

Mobile…………………………………………………………………………………………………………..

E‐mail……………………………………………………………………………………………………………

Pleasestatethemainnatureofyourbusiness?…………………………………………………………………………………………………………………………………………

………………..……………………………………………………………………………………………………..................

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Whatwasthegrossturnoverofyourbusinessperannumoverthelastthreeyears?…………………………………………………………………………………………………………………………………………

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Howmanyemployeesdoesyourcompanyhave?…………………………………………………………………………….

Brieflydescribetheorganizationstructureofyourbusiness(Youmayattachanorganizationchart).



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AUTHORISED ECONOMIC OPERATOR PROCEDURE MANUAL


B.SELFASSESSMENT

Response Observat

1.0 COMPANYINFORMATION

1.1 Doyoutradewithbusinesseswhicharerelatedtoyou?

1.2 Provide details of any independently accredited standards towhichyouadhere.

1.3 Internalorganization

1.3.1 Provide the professional and contact details of the seniorpersonnelresponsibleforcustomsmattersinyourorganization.

1.3.2 Haveyoudocumentedfallbackprocedureswhenkeystaffsareabsent?

2.0 COMPLIANCERECORD

2.1 Compliancehistory

2.1.1 Has any action been taken against your company on anyinfringement/offence committed under the E.A.C CustomsManagement Act and regulations in the last 3 years? If yes,pleasespecifytypeofoffenceandactiontaken?

2.1.2 Does your company owe any unpaid duties to the CustomsDepartmentorhaveanyotheroutstandingobligationtoanyoftheEACRevenueAdministrations?Ifyes,specify.

2.1.3 Provide brief details of any customs authorisation held orsoughtbyyourbusinesswhichhasbeenwithdrawn,suspendedordeniedinthelastthreeyears.

2.1.4 Haveyoudocumentedproceduresforidentifyinganddisclosingirregularities/errorstoCustomsorotherregulatoryauthoritiesasappropriate?

2.1.5 Providebriefdetailsof any complianceerrorsor irregularitiesyouhavediscoveredinyourbusinessinthelastthreeyears.

2.1.6 Have you taken any remedial action as a result of the above?Explain



2.1.7 Doyouhaveadocumentedpersonnelcodeofconduct?(YesorNo)

2.2 Haveyoubeenconvictedforanycriminaloffence?(YesorNo),ifyesprovidedetails

3.0 MAINTENANCEOFRECORDS

3.1 Doyoumaintainafullaudittrailofyourcustomsactivities?(YesorNo)Pleasegivedetails.

3.2 Accountingandlogisticalsystem

3.2.1 Whataccountingpackage/logisticalapplicationsystem(e.gsunsystem,sagee.t.c)doyouuseforyourcommercialanddutymanagement?

3.2.2 Providethenameofthesoftwaremanufacturer

3.2.3 Whereareyourcomputerserverslocated?

3.2.4 Iftheaccountingsystemisautomated,isitpossibleforCustomstointerrogateandextractthedatafromthesystem?(YesorNo)

3.3 Internalcontrolsystem

3.3.1 Haveyoudocumentedproceduresbywhichemployeeswithinthedifferentunitsinyourbusinessoperate?(E.g.sales,production,etc.)(YesorNo)

3.3.2 Doesyourcompanyhaveanindependentinternalauditfunction?(YesorNo)

3.3.3 IsthereaframeworkestablishedtotakeactionsonrecommendationsoftheInternalAudit?(YesorNo)

3.3.4 Haveyourinternalcontrolprocessesbeensubjecttoanyinternal/externalaudit?(YesorNo)

3.3.5 Haveyoudocumentedprocedurestocontrolyourkeyandconfidentialbusinessinformation?

3.4 Makingcustomsdeclarationsandtheuseofcustomsagents

Haveyoudocumentedproceduresforverifyingtheaccuracyofcustomsdeclarationsincludingthosesubmittedonyourbehalfbyathirdpartyrepresentativee.g.agent,forwardere.t.c?

4.0 FINANCIALSOLVENCY



4.1 Areallyourannualaccountsuptodate?(YesorNo)

4.3

Doyouhavecopiesofyourexternalauditors’reportsandmanagementlettersforthelast3years?(YesorNo)

5.0 SECURITYANDSAFETYSTANDARDS

5.1 Informationsecurity

5.1.1 Haveyoudocumentedproceduresforback‐up,recovery,fallback,archivingandretrievalofyourbusinessrecords?(YesorNo)

5.1.2

Haveyoudocumentedprocedurestoprotectyourcomputersystemagainstunauthorizedaccess?(YesorNo)

5.1.3 Haveyoudocumentedprocedurestoensureyourcompanydocumentsaresecure?Explain

5.2 Logisticalsecurity

5.2.1

Whichmeansoftransportarenormallyusedbyyourbusiness?

5.2.2

Transportownership

a.soleownership

b.thirdparty

c.both

5.2.3

If“b”or“c’’above,doyouhaveagreementsinplaceoutliningresponsibilitiesandproceduresforthesecurityofgoodsunderconveyance?(YesorNo)

5.3 Premisessecurity

5.3.1 Haveyouimplementedmeasurestosecureyourbusinesspremise?Describe

5.3.2 Haveyoudocumentedproceduresforcontrolofentrytocargoareas?(YesorNo)

5.4 Personnelsecurity

5.4.1 Areemployeesprovidedwithidentificationwhileatwork?



5.4.2 Doesyourcompanyconductsecurityawarenessprogramstoemployees?Describe

5.4.3 Doyoucarryoutbackgroundchecksonnewlyrecruitedstaff?Describe

6.0 Volumeofbusiness

6.1 FiscalstatisticsonCustomsmatters

6.1.1 WhatisthenumberofCustomsdeclarations(imports,exportsandre‐exports)madebyyourcompanyinthelast3years?

6.1.2 WhatisthetotalamountofCustomsdutiesandtaxespaidbyyourcompanyinthelast3years?

6.1.3 Hasyourcompanydealtinexemptedgoodsinthelast3years?(YesorNo)

7.0 NATUREANDFLOWOFGOODSTRADEDIN

7.1 Natureofgoods

7.1.1 Providealistofthemaincountrieswithwhichyoutrade.

7.1.2 Doyoudealingoodswhicharesubjecttopreferentialrateofduty?(YesorNo)

7.1.3 Doyouimport/exportorre‐exportgoodssubjecttolicenses,permits,certificatesorrestrictions?Providedetails.

7.2 flowofgoods

7.2.1 Haveyoudocumentedprocedurestocontrolstockmovement?(YesorNo)

7.2.2 Haveyoudocumentedprocedurestocontrolyourmanufacturingprocesses?(YesorNo)

7.2.3 Haveyoudocumentedprocedurestocontrolthedeliveryofgoodsfromstocktoyourcustomers?(YesorNo)

8.0 TRADEPARTNERS

8.1 Whenenteringintonegotiatedcontractualarrangementswithatradingpartner,doyouencourageyourcontractingpartyto



assessandenhanceitssupplychainsecurity?

8.2 Haveyouestablishedasystemofreviewingrelevantcommercialinformationrelatingtoyourcontractingpartybeforeenteringintocontractualrelations?

6.2 APPENDIX2:REGIONALAEOACCREDITATIONPROCESS



Regional Authorized Economic Operator AE

O Unit

Applican

tVa

lidation

Committee

Approval

Committee

Com. O

f Cu

stom

s (Hom

e)

Director

Custom

s

Com. O

f Cu

stom

s (Rest)

Accreditation Process

Start StopCOMPLETESAF

SELFASSESSOK?

N

Ok?VERIFYPROVIDE FEEDBACK

SENSITIZEN

ACKNOWLEDGE

REGISTER

RECEIVESAF

ACCEPTED APPLICATNS

OTHER REPORTS (RA/

DEPTS)

INSPECT AUDIT Ok? REJECT

EVALUATE REPORT

Ok?CAN

IMPROVE?N

N

Y

ACTIVATE IN CMS

DATABASE

Y

RECEIVERECOMMEND

Ok?

IMPROVEMENTPLAN

NY

APPROVE SIGNMOU

AWARDNOTIFICATION AWARD

AWARDNOTIFICATION

Y

ACTIVATE IN CMS

N

Documents

The East African Community - OBR · 2017-11-06 · Act (EACCMA) 2004 and the Compliance and Enforcement Regulations. 1.5 AEO Type The Regional AEO applicant shall be assessed using