The Parliament Approves the Introduction of the Authorized Economic Operators in Ukraine

On October 2, the Parliament of Ukraine voted for the draft law No. 1048 “On Amendments to the Customs Code of Ukraine on Certain Issues of Authorized Economic Operators”. 270 Members of Parliament voted for the draft law.

The main purpose of the law is to introduce in Ukraine a functioning Institute of Authorized Economic Operator (AEO) similar to the one operating in the EU and to fulfill Ukraine's obligations under EU-Ukraine Association Agreement.

Under the Article 84 of the Association Agreement between Ukraine and the European Union, Ukraine has committed itself to gradually approximate national customs legislation to the EU customs legislation. This provides, in particular, the introduction of an Authorized Economic Operator Program in Ukraine.

The AEA concept was introduced by the World Customs Organization in 2005 by adopting the Framework of Standards to Secure and Facilitate Global Trade.

The AEO program is aimed at establishing trust-based relations between business entities and customs. Today, AEO programs have already been implemented in 83 countries of the world, another 19 countries are in the active stage of implementation, also, 78 agreements on mutual recognition of AEO have already been concluded in the world. According to EU data, more than 80% of all customs clearance is made by business entities using AEO tools.

The approved draft law introduces an effective mechanism for the AEO Institute in Ukraine similar to the one operating in the EU, with the prospect of further mutual recognition of authorized traders and customs controls, as provided for in the Article 80 of the EU-Ukraine Association Agreement. The future recognition of AEO status by the customs authorities of EU countries will ensure the participation of Ukrainian AEOs in the formation of so-called secure supply chains, will significantly simplify the customs formalities for lawful business entities, and will increase their competitiveness on foreign and domestic markets.

Cooperation between international partners will increase the efficiency of customs authorities through access to up-to-date sharing information tools and the reduction of time spent on control procedures due to the work of AEO.