KUALA LUMPUR: Three companies in Malaysia with outstanding customs compliance records have been recognised with the Authorised Economic Operator (AEO) award, endorsed by the World Customs Organisation (WCO).
This recognition grants the companies a few advantages, including reduced physical inspections and streamlined customs procedures, particularly in international trade.
This marks the first time the AEO award has been presented to Malaysian companies, acknowledging their adherence to international trade security and compliance standards under the WCO’s SAFE Framework of Standards, while ensuring compliance with Customs Department laws.
Customs director-general Datuk Anis Rizana Mohd Zainudin said up to Dec 31, the department had accredited 177 companies.
She said three of them were awarded the AEO — Avago Technologies (M) Sdn Bhd, Infineon Technologies (M) Sdn Bhd and Panasonic System Networks Malaysia Sdn Bhd.
She said company nominations for the AEO award were opened nationwide, with selections made based on criteria such as having a clean record with no fines or offences under the Customs Act.
Other requirements, she said, include no outstanding receivables with the Customs Department and fully utilising the AEO system for trade declarations.
To date, she said, 97 out of 186 WCO member countries have implemented the AEO programme and the department encouraged more companies to participate to benefit from global trade facilitation.
“The AEO award was introduced in 2010 to replace the Customs Golden Client (CGC) programme, established in 2005 to enhance trade efficiency and supply chain security.
“The CGC programme previously aimed to provide special facilities to companies with excellent customs compliance records, offering privileges such as faster customs clearance and priority in customs services.”
She said the programme had evolved into the AEO, an internationally recognised scheme that emphasises global supply chain security and customs compliance.
“The three companies granted the AEO will enjoy reduced physical inspections and simplified, expedited customs procedures, particularly in international trade.”
AEO-certified companies qualify for automatic approval for imports, exports and transfers, deferred duty or tax payments and priority access to licensed manufacturing warehouse facilities.
She said under the old CGC scheme, eligibility was open to companies involved in import and export exceeding RM50 million, as well as licensed manufacturing warehouses with turnovers exceeding RM25 million.
In contrast, she said, the AEO programme is open to manufacturers, importers, exporters, customs agents and warehouse operators.
“Under the CGC, general eligibility criteria included passing intelligence branch screening, undergoing post-import audits, submitting general bonds, making duty payments via electronic fund transfer and signing a memorandum of agreement with the Customs Department.
“The AEO criteria require companies to have been operating in Malaysia for at least three years and maintain strict supply chain security controls.
“They must also demonstrate a high level of compliance with all relevant laws and undergo screening by the Customs Department and other agencies, including the police, Companies Commission of Malaysia and the Inland Revenue Board.”
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