2018 Budget - Changes to AEO and Trusted Trader
The budget as delivered last week contains a number of references important for businesses involved in international trade.
Below you will find a brief summary:
- HMRC will halve the time it takes to become an Authorised Economic Operator (AEO) or other type of customs trusted trader, from 120 days to 60 days.
- Trusted trader status will offer a range of benefits – making trade across borders quicker, cheaper and easier for business.
- Trusted trader authorisations include:
- Customs Freight Simplification Procedures (allowing traders to use a simplified customs declaration upfront);
- Duty Deferment Accounts and Customs Comprehensive Guarantees (allowing traders to defer payments to HRMC which benefits cashflow); and
- Authorised Economic Operators (allowing traders a range of benefits including a 70% reduction in the cost of guarantees and fewer physical and document based controls, making trading much simpler and cheaper).
- HMRC will implement the improvements within 2 years, including:
- Additional dedicated staff to process authorisations for traders;
- Combining authorisation processes to limit the need for multiple applications;
- Better guidance on gov.uk that sets out which authorisations are most relevant for your business;
- Digital validation checks to remove initial errors in applications; and
- Streamlining processes so traders only have to provide data once.