2018 Budget - Changes to AEO and Trusted Trader

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.