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Indonesia urged to obtain AEO certificate

Indonesia should obtain an authorized economic operator (AEO) certificate to help verify the safety standards of its products in order to ease processing at ports and reduce logistics cost, says an expert

The Jakarta Post
Thu, November 21, 2013 Published on Nov. 21, 2013 Published on 2013-11-21T12:37:36+07:00

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I

ndonesia should obtain an authorized economic operator (AEO) certificate to help verify the safety standards of its products in order to ease processing at ports and reduce logistics cost, says an expert.

If the country improved its safety standards as stipulated in the AEO, its exports could be processed faster in the destination countries and help boost efficiency in international trade, according to Henk van Zandwijk, a strategic advisor of international affairs with the Tax and Customs Administration of the Netherlands.

'The aim of an AEO is to separate the known and trusted traders, from the unknown traders,' he said during his visit to the Finance Ministry's customs and excise office on Tuesday.

Goods from countries with an AEO enjoyed smoother access in ports as the countries were internationally recognized as secure and safe business partners, which eventually reduced dwelling time in ports, van Zandwijk explained.

The AEO was formulated on the initiative of the World Customs Organization (WCO) aiming to have customs administrations shift their focus more to assisting international trade flow, rather than simply collecting customs duties, their traditional task.

At the moment, there are at least 23 countries that have earned the AEO certificate, with the members having the privilege of smoother access to destination countries when trading with each other.

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