THE IMPLEMENTATION OF THE AEO IN GERMANY

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THE IMPLEMENTATION OF THE AEO IN GERMANY
Dr. Annegret Rohloff, Federal Ministry of Finance
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STRUCTURE OF THE PRESENTATION

• Current situation in Germany
• Implementing measures
• Application procedure
• Audit in practice
• Benefits
• Monitoring
• Timeframe

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CURRENT SITUATION IN GERMANY

• Thousands of AEO applications expected in 2008
• Reasons
• German economy export-oriented
• Pressure by consultants and some influential
  traders
• AEO status seen as advantage in competition

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PREPARATORY MEASURES

• National Central Office (Zentralstelle AEO) for
  information exchange and consultation procedure
• National administrative instructions (by
  September 2007)
• National Database (linked with ATLAS)
• Training Programme (starting June 2007) and
  E-Learnig (starting September 2007)
• Information at www.zoll.de

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THE CHALLENGE

• Pre-audit as precise as possible
• Lack of ressources
• High number of expected applications
• Limited time frame (300 days including
  consultation)

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OUR APPROACH

• The applicant has to provide as much information
  as possible (self-assessment)
• Use of internal information of the customs
  administration (data bases, audit reports etc.)
• Complexity and duration of the application
  process depends on information available and
  submitted by the trader

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APPLICATION PROCEDURE

• Competencies
• Issuing of certificates Main Customs Offices
  (decentralised), Unit B (authorisations)
• Information exchange, consultation Central
  Office (Zentralstelle AEO)
• Legal basis
• EU - guidelines (will be finished soon)
• national administrative instructions (by
  September 2007)

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APPLICATION PROCEDURE

• Use of standard forms
• Use of data bases
• National IT-System ATLAS AEO from January 2008
• EU IT-System (first phase from Jan 2008, full
  system mid 2009)

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Application procedure participating
administrations
Application for an AEO- Certificate
Issuing of the AEO- Certificate
Local Main Customs Office
Central office (Zentralstelle AEO)
Communication with other MSs administrations
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Application procedure Time limits
issuing of the Certi- ficate
Check for completeness, Art. 14 c para 1, 30
days
Entry of appli cation
5 (10) working days communication with other MS,
Art. 14 l duration max. 35 (70) calendar days
60 (120) calendar days Consultation with other
MS, Art. 14 m Abs.1
90 (300) calendar days for issuing the
certificate, Art. 14 o Abs.2
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AUDIT IN PRACTICE

• Criteria
• How to interpret them?
• How to audit them?
• Principles
• Uniform application in all MS
• German particularities (organisation, procedure,
  competencies)

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Compliance with customs rules

• How to interpret the criteria, e.g.
• serious infringement
• repeated infringement
• discretion of customs authority according to para
  1 sub-para 2
• assessment of new companies

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Compliance with customs rules

• How to audit the criteria?
• Use of Databases, e.g.
• INZOLL
• DEBBI
• Knowledge of units B, D (Auditors) and F (law
  inforcement) about offences

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Satisfactory system of managing commercial
records

• How to interpret the criteria, e.g.
• Accounting system facilitating audit based
  customs controls
• Logistical system distinguishes between Community
  and non-Community goods
• Administrative organisation corresponding to the
  type and size of business
• Satisfactory procedures for archiving of records
  and information

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Satisfactory system of managing commercial
records

• How to audit the criteria?
• Assessing the questionnaire
• Prior audits by Customs Audit Service to be
  considered
• Certificates or use of standard software,
  firewalls etc.
• Only in case of inconsistencies or no other
  information available audit at the premises of
  the operator

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Financial solvency

• How to interpret the criterion?
• Definition in Art. 14 j para 1 Sub-para 2
• How to audit the criterion?
• References to an audit report, ranking by a bank,
  or information from a bank
• Transit procedure reduction of a compre-hensive
  guarantee (Art. 380 para 3 CCIP)

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Safety and security

• How to interpret the criteria?
• approach related to each individual case
• Trade partners, sub-contractors security
  declarations
• Staff restrictions by German labour legislation
  requirement for hiring new employees, but
  compliance with EU-Anti-Terror-Lists

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Safety and Security

• How to audit the criteria?
• Questionnaire (self assessment)
• Global view is there a reasonable security
  concept
• Use of certificates (ISO and others)
• Control visits to representative premises

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AEO BENEFITS Practice in Germany (1)

• General benefits
• Low risk score depending on the number of AEOs
  in the supply chain
• Fewer controls due to the local conditions
• Document based controls include customs audits
  (risk oriented audit plan)
• Controls as matter of priority
• Choice of place of control as a rule

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AEO BENEFITS Practice in Germany (2)

• Security related benefits
• Prior notification of controls
• Reduced data requirement
• Implementation by electronic means
• National AEO data base (AEO ATLAS) linked with
  ATLAS Clearance

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MONITORING

• Carried out by Unit B
• cooperation with other units (e.g. audit team,
  enforcement)
• data based (IT-system PRÜF)
• new established companies special focus on
  solvency during the first year

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TIMETABLE

• from June 2006 AEO training for decision-makers
• August 2007 implementation of national
  administrative instructions
• September 2007 Nationwide seminar on the AEO
  application procedure
• January 2008 Start of the application procedure
• Spring/Summer 2008 first AEO certificate issued

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CONCLUSIONS - FAQ

• Is it mandatory to become an AEO?
• Which certificate?
• When?

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Thank you for your attention!