Guatemala increases the amount of AEO

By Mayora IP

27 Guatemalan companies have already been named as Authorized Economic Operator (AEO), and the government expects that by the end of the year they will total 35. As part of that strategy to increase the number of AEO companies, the Guatemalan Tax Administration Service is in the process of making recognition agreements with certified companies in Costa, Rica, El Salvador, Mexico, Panama countries of South America.

The Authorized Economic Operator (AEO) is defined as ë a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national customs administration as complying with WCO or equivalent supply chain security standards.

AEO has become a flagship partnership between customs and the business community for World Customs Organization members as it offers an opportunity for customs to share its security responsibilities with the private sector, while at the same time rewarding them with a number of additional facilitation benefits. Partnership programes with trade allow Customs to achieve more with less effort and aim at ensuring sustainable and long-term compliance through incentives, such as reduced levels of control, simplified procedures, periodic reporting, deferred payment, and reputational benefits, as well as facilitation benefits across borders.