Daikin Europe N.V. achieves Authorised Economic Operator status, enhancing its position as reliable trading partner
Daikin Europe N.V. (12/12/2011)
AEO certified companies can expect easier access to simpler customs procedures
Partnership with customs reduces risks and increases efficiency
To achieve Authorised Economic Operator (AEO) status, companies must submit a self-assessment document to the customs authorities. Based on this, customs officials then undertake a series of audits of the company’s relevant supply chain and processes. The focus of these audits is to protect the external borders of the EU and combat various risks to international supply chains by so-called economic operators. This ensures that specific risks within the company’s control are covered, allowing customs officials to focus their activities on the remaining risks. The result is a coordinated approach to secure international trade without adversely affecting business.
Major investment with strategic importance
Joffrey Decock, Manager Customs & Supply Network Operations at Daikin Europe, explains the significance of AEO. “The AEO principle is simple: assuring safe and compliant supply chains and increasing the efficiency of customs activities. This in turn directly facilitates and promotes the international trade of goods. To achieve this improved efficiency, the traditional model of customs as the mistrusting authority figure in search of possible violations has given way to a model of partnership between the authorities and companies. Both parties work together to cover the risks entailed in cross-border trade in the most efficient way possible.”
To become certified, companies must demonstrate that all aspects of their supply chain and internal processes – IT systems, personnel, carriers, forwarders, warehouses … – include the procedures required to ensure a safe and secure supply chain. In return, AEO certified companies can expect easier access to simpler customs procedures. AEO certification also ensures that existing permits with respect to independent in-house custom’s processing remain secured, and is a first step towards the further streamlining of customs processing at European and international level.
Everyone wins
AEO certification is a benefit for all parties concerned. The customs authorities are able to dedicate their limited resources to cover the risks not covered by the companies themselves and focus on unsecured business lanes. Companies are rewarded for their cooperation with streamlined procedures that in turn result in fewer delays, improved scheduling, more reliable service and decreased processing costs. End users receive their goods quicker, more reliably and at the lowest possible cost.
Quote: “With AEO accreditation, the traditional model of customs as the mistrusting authority figure in search of possible violations gives way to a model of partnership between the authorities and companies. Both parties work together to cover the risks entailed in cross-border trade in the most efficient way possible.” Joffrey Decock, Manager Customs & Supply Network Operations, Daikin Europe N.V.
Only a first step
Joffrey Decock notes that while AEO is a European project, similar projects are either already existing or underway in other regions including the Americas (US, Canada, Brazil…) and the Asian-Pacific countries (Japan, China …). The intent is that these projects will merge in the future, further enhancing safe, secure and efficient international trade, while lowering the control barriers on both sides of the relevant borders.
J. Decock concludes that AEO accreditation was a major exercise for Daikin Europe N.V. that involved a thorough screening of processes and goods flows related to 3 main divisions: production, spare parts distribution, and finished units distribution. Affected departments included IT, Accounting, HR, Internal Audit and General Affairs. And due to the multinational nature of Dakin Europe N.V., this ‘health check’ of customs-related processes also included operations in other EU member states.
AEO certification represents a first step in the evolution toward centralised customs processing for all European import/export activities at Daikin Europe’s headquarters in Ostend. Accreditation is life-long, subject to the successful completion of an audit every three years.
The AEO certificate was awarded to Daikin Europe N.V. on 9 December by the regional customs authorities. Daikin Europe N.V. is among the first in the region of East/West Flanders to obtain cross-border certification for its international activities in Europe.
For more information on the products and services of Daikin Europe N.V., visit www.daikin.eu.
