Davies Turner The path to AEO

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Davies TurnerThe path to AEO

• The process of applying, completing the self
  assessment and the audit.

Authorised Economic Operator (AEO) Information
Seminar
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Agenda

• Introduction
• Why become an AEO
• Reasoning
• How sold internally
• Management buy-in
• Good points
• Bad points
• The Process
• Application
• Self assessment
• Audit
• Changes to the business
• Enhanced our Customs processes
• hard look at what we do
• formalised the processes in relation to
  consignees
• Enhanced our supply chain security
• Now applies to Imports as well as Exports
• Consolidated existing processes for DG, High
  consequence, high value and export freight into
  one coherent process for all frieight
• Benefits

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Introduction

• Davies Turner
• Independent freight forwarding company
• 20 offices in the UK with over 750 employees
• Services include
• Import and Export freight by road sea and air
• Logistics
• Courier Express
• Supply Chain Consultancy including AEO
• Air Cargo Division now one of Europes first
  Authorised Economic Operators
• David OToole
• General Manager with the air freight division
• Develops policy and processes within the
  disciplines of
• Compliance
• Quality
• Safety and Security
• Led the team responsible for AEO
• AEO consultant with DT Group and externally

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Why AEO

• Terrorism is one of the greatest threats to
  democracy and freedom. The risk of a terrorist
  attack targeting freight transport remains high.
  Transport security has become a vital worldwide
  issue.
• European Commission
• Fighting terrorism is like being a goalkeeper.
  You can make a hundred brilliant saves but the
  only shot that people remember is the one that
  gets past you.
• Daily Telegraph
• We do not create terrorism by fighting the
  terrorists. We invite terrorism by ignoring them.
• George W. Bush
• In an interconnected world, the defeat of
  international terrorism will require the
  cooperation of many nations.
• Barack Obama

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Five practical actions to minimise the threat
from a terrorist attack

• Gather high quality information from the right
  source
• use the expertise of government and academic
  bodies to guide strategy and operations
• Choose locations wisely
• across the world the possibility of a direct
  attack is low but businesses need to consider the
  risk of indirect damage
• Engage with local communities and understand
  local customs/traditions.
• Adopt security as good practice, not a burden
• Protect supply chains
• Source Lloyds - 21 February 2008

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Protecting your supply chain

• If a company's supply chain is attacked or shut
  down, it simply cannot survive.
• While many businesses are aware of possible
  attacks on their premises and take precautions to
  avoid this, too few take into account their
  operating systems and transport routes
• Richard Ward, Lloyds Chief Executive

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Why did we apply?

• Corporate responsibility
• To our Customers to protect their supply chain
• Demonstrate commitment to the much wider
  programme of supply chain security globally
• Multilayered security to prevent terrorists using
  the supply chain
• Company Goals
• Professional in all respects Government
  endorsement!
• Profitable Business opportunity/defence
• The challenge
• We love a challenge!

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Making the decision

• DT is known for its Pioneering spirit and works
  closely with organisations such as Customs
• Keep close eye on developments within the sector
• Involved in presentation at the CBI form a
  forwarders point of view
• Why did we agree to go ahead
• How sold internally
• Management buy-in
• Good points
• Bad points

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Business review

• Five key areas
• Trader information
• Compliance record
• Accounting and logistical systems
• Financial solvency
• Safety and security
• Critical look at business processes
• Identify and document good controls across the
  business

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The application process

• Complete the application and questionnaire
• C117 AEO Application
• C118 AEO Questionnaire comprising 94 questions
• Customs Audit
• Audit of the company based on the type of AEO
  authorisation being pursued
• Liaise with member states customs authorities as
  required
• Provide a report

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Completing the application and questionnaire

• C117 AEO Application
• Standard information about the Company.
• C118 AEO Questionnaire
• 94 questions
• In depth self assessment of
• Companys Customs related activities
• Safety and Security for both Imports and Exports

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The Self assessment

• Customs
• Facts and figures
• Processes
• Compliance history
• Compliance management

• Safety and Security
• History
• Processes
• Training
• Staff
• Building security
• Vehicle security
• Suppliers

Do you know your business as well as Customs do?
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Take 1 of 94 questions

• 5.01.2
• Have you undertaken and documented a safety and
  security assessment?

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What is required?

• 5.01.2
• In preparation for our visit, you should conduct
  or arrange a self assessment to analyse whether
  you are able to meet the AEO security
  requirements.
• This assessment should be made available during
  our visit.
• The purpose of the assessment is to identify the
  risks and threats which might occur in that part
  of the supply chain in which you operate, and to
  look into the measures in place to minimise the
  risks and threats.

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The AEO audit in detail

• Two main areas
• Customs history
• Customs already knew a lot about us
• Review trading history and approvals which
  required investigation of our business
• NES
• DEPS
• ERTS
• CFSP
• Safety and Security
• New to Customs but not to us due to the
  requirements for aviation security
• The audit concentrated on the aspects of our
  business which are relevant to the supply chain

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The audit in practice

• Visits to 5 offices of the 12 dealing with air
  cargo
• Reviewed the self assessment
• Looked in detail at our
• IT systems (including IT security)
• Processes
• Staff employment systems and training
• Building and commercial vehicle security
• Supplier vetting
• Compared what we said with what we do.

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The benefits

• Opportunity to
• critically review supply chain functionality
• reinforce good practice
• identify weak areas
• demonstrate our professionalism

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• Visit www.chamber-international.co.uk/openday
• to download the presenters notes