Customs activities for this year are underpinned by the World Customs Organization’s (WCO) 2021 theme “Customs bolstering recovery, resilience and renewal for sustainable global supply chain”. The colossal task that lies ahead as nations look to reconstruct their global supply chain is one of the reasons that the WCO has advocated Authorised Economic Operator (AEO) programmes as a tool to promote reconstruction.
SARS, in collaboration with the Border Management Agency (BMA), is leading the process of creating a Single Government AEO (SGAEO) programme to ensure improved trade facilitation and supply chain security in South Africa, the Southern African region, the African continent and globally. The World Bank (WB) and WCO have agreed to assist SARS to create a SGAEO programme, through the WB Trade Facilitation Programme.
The agreement to conceptualise a SGAEO for South Africa culminated in agreement that SARS and the BMA would jointly host a workshop with all agencies involved in managing trade at the border. The WB and WCO have agreed to participate in the workshop on 2 March 2021. The workshop is intended to contextualise and set the scene for the creation of a SGAEO programme in South Africa and to allow for comparison of the various OGA risk management programmes for cross border trade with the SARS AEO programme.
International drivers for Single Government AEO programmes include the World Trade Organisation’s Trade Facilitation Agreement and the WCO’s SAFE Framework of Standards. South Africa’s scoring on the OECD’s Trade Facilitation Indicator is used as input into the World Bank’s (WB) Ease of Trading across Borders in its annual Doing Business Report.
For Customs Administrations, AEO programmes are vital tools for developing trust-based partnerships with economic operators who have high levels of commitment to compliance and supply chain security. Economic operators, on the other hand, are interested in the tangible benefits offered to participants, particularly, mutual recognition agreements (MRAs) with trading partners.
While several countries have adopted different OGA (Other Government Agencies)AEO models, SARS’ preferred model is a Single Government AEO Programme with one certification process and benefits granted by all agencies.
Source: South African Revenue Service, Rae Vivier, 2 March 2021