Preparing for AEO Status: A Detailed Guide Coming Soon
Giorgi Katcharava, Executive Director of the Business Council of Georgia, recently revealed on the "Business Partner" program that a comprehensive guide for companies will be available in the near future.
This announcement came after the Georgia-EU Business Council conducted a targeted study concerning the attainment of Authorized Economic Operator (AEO) status. The study helped outline the pathways that businesses should adopt moving forward.
Katcharava stated that out of 28 companies surveyed, 25 expressed their readiness to apply for this status with the Revenue Service. He emphasized that this collaborative approach, founded on the partnership between businesses and the revenue service, could yield significant advantages for businesses, such as reduced physical or documentary inspections and enhanced utilization of customs services.
Despite these potential benefits, Katcharava highlighted that there's a pressing need to increase awareness at this stage.
"Our research findings revealed that 80% of the companies meet the necessary criteria for achieving AEO status, which include no substantial criminal offenses, robust control over operations and commodity flows, as well as financial solvency and stability," Katcharava added.
He further shared plans for consultations with EU countries to pave the way for mutual recognition of AEO status. This could lead to the reciprocal benefits for companies in both regions, thereby facilitating the reduction of technical barriers to trade in the future.
According to Katcharava, the Ministry of Finance has already commenced discussions with China and Turkey about mutual recognition, and consultations with other countries are on the horizon.
Worth noting is that, to date, seven companies have acquired AEO status. However, Katcharava anticipates that an additional 20 companies will apply for this status. Importantly, it's not only large corporations that can achieve this status but also medium and small enterprises.