Application Tools The AEO COMPACT Model Simplifications in the Context of Economic Operators
Journal Title: Центральноукраїнський науковий вісник. Економічні науки. - Year 2017, Vol 31, Issue
Abstract
The article deals with the use of tools The AEO COMPACT (Compliance Partnership Customs and Trade) Model in the context simplifications of economic operators. The COMPACT framework is a methodology to perform such an assessment. Not only on a national level, but also on an international level, when more countries are involved. It is a flexible tool that can be used not just in the protection of the fiscal interests of a Member State or the Community, but also in the protection of the non-fiscal interests such as the protection of the external frontier of the Community (e.g. Supply Chain Security and Anti Smuggling). Integrated parts of the AEO COMPACT Model are the Risk Mapping method described in this document and the guidelines on standards and criteria. The economic operator applying for AEO status shall implement, in conformance with its business model and risk analysis, the systems, the procedures, conditions and requirements established in the Community Customs Code and the guidelines on standards and criteria. Customs and the economic operator shall work cooperatively toward realizing the commitment of the applicant in the risk assessment work outlined in this document. The customs authorities must audit that the applicant satisfies the requirements relevant for it's business and established in the Community Customs Code. The assessment of the operator’s risks is the cornerstone of the COMPACT framework. This assessment can be done by using the risk mapping method. Within the business community the risk mapping method is used to a great extent. Also the Customs can benefit by developing the risk mapping method to be used as a systematic method to the assessment and judgement of risks. Furthermore, a systematic approach is also needed to determine in what way a certified operator should be controlled and evaluated afterwards. The method is meant to prioritise risks by evaluating the likelihood and impact risks will have on the Customs’ objectives. It is a method that structures and supports the weighing and judging of risks. By using the risk mapping approach together with measures expressed in the COMPACT framework you will have a structured approach aimed at risk identification, risk assessment, control approach and the evaluation for continuous improvements. The risk mapping process originally consists of five basic steps: Step 1. Understanding the business (of an operator); Step 2. Clarify the customs’ objectives; Step 3. Identify risks (which risks might influence the customs’ objectives); Step 4. Assess risks (which risks are the most significant); Step 5. Respond to risks; what to do about the (remaining) risks. Proposed areas of implementation of European practices introduction of authorized economic operator, based on the AEO COMPACT Model, to the national customs legislation.
Authors and Affiliations
Vitalіi Turzhanskyi, Igor Nestoryshen
Keywords
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