INFLUENCE OF AUTHORIZED ECONOMIC OPERATORS ON SUPPLY CHAIN SECURITY

Abstract

Supply chain security and logistics management in private and public sectors is dependent on accurate,comprehensive data from trusted, compliant companies. Among all involved in supply chain and logisticsCustoms plays an important role in the fight against cross-border crime and terrorism. Customs expertise incontrolling goods, backed up by the use of modern IT systems with e-Customs tools, and an efficient riskassessment and border control management, is vital to detect illegal goods such as drugs, explosive materials,nuclear and chemical weapons.One of the most important components of European Union’s Community Customs Code is status ofAuthorized Economic Operator (AEO). Its aim is to grant economic operators the status of a low-risk, moretrusted actor under certain circumstances when it comes to actions with customs authorities within the EU. Atthe moment there are three types of AEO status that companies can be certified for.Since Croatia joined EU in 2013, Customs has started to apply concept of Authorized Economic Operatorsystem. This process and status is relatively new and there are not many companies that have started process ofreceiving status of AEO that will give those companies benefits in customs procedures in EU and whole world.Therefore this paper will give more information about AEO status and what Croatian companies need for gettingthis status and how it can benefit supply chain security.

Key words: supply chain, security, security standards, authorized economic operator, benefits for companies,AEO in Croatia