International Logistics and Supply Chain

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International Logistics and Supply Chain

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Table of Contents
Introduction............................................................................................................................. 2
Outline of AEO Scheme............................................................................................................3
Categorises of AEO Status and its Benefits...............................................................................4
Case Studies............................................................................................................................. 5
Implications of No Deal Brexit..................................................................................................7
Irish Border after Brexit............................................................................................................9
Conclusion.............................................................................................................................. 10
References..............................................................................................................................11
List of Figures
Figure 1: Top 3 Countries with AEO..........................................................................................3
Figure 2: LG Electronics Sales by Region (in billion US dollars).................................................6
Figure 3: UK Exports: EU versus non-EU...................................................................................8

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Introduction
Brexit is the withdrawal of the United Kingdom from the European Union; it is an
abbreviation of “Brexit Exit”. There are various implications of Brexit which resulted in
creating challenges for businesses operating in the United Kingdom and the European Union
(Cumming and Zahra, 2016). Brexit also affect the authorised economic operator (AEO)
which is a party that is involved in the movement of goods which has been approved by or
on behalf of national Customs administration as complying with the provisions issued by the
World Customs Organisation (WCO) or equivalent supply chain security standards (den
Butter, Liu and Tan, 2012). The objective of this report is to outline the AEO scheme and
describe the three categorises of AEO status. This report will evaluate the benefits of AEO
status and evaluate two case studies to understand these benefits. Furthermore, this report
will analyse the implications of “no deal” relating to the Withdrawal Agreement and how
the Irish border will look like after Brexit.

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Outline of AEO Scheme
The Authorised Economic Operator (AEO) certification is used as an internationally
recognised quality mark which assists importers, exporters, manufacturers, brokers and
others in ensuring that their role in the international supply chain is secured (den Butter, Liu
and Tan, 2012). This certification assists in ensuring that their customs controls and
procedures are efficient and compliant. It is an EU scheme in order to give ‘Trusted Trader
Status’ to businesses that fulfil required criteria. In order to acquire the AEO certificate, it is
important that the company must be fully registered Economic Operator Registration and
Identification (EORI) business and show that it complies with regulations, professional
qualifications and practical standards of competence, maintains relevant books and solvent
(Diaz Gavier and Verhaeghe, 2012). Germany has the most number of AEO certified
companies (6,227) after France and the Netherlands; whereas, the UK only has 628 AEOs.
Figure 1: Top 3 Countries with AEO
(Source: Barclays Corporate, 2018)
The AEO scheme is available to any company that is involved in the international supply
chain operations in the European Union, and they comply with the criteria. Organisations
that carry out customs related activities in the EU which include importers, manufacturers
and exporters can rely on this certification to simplify their operations. The AEO status is
one of the key elements within the WCO SAFE Framework of Standards (SAFE)