The SAFE Standard has its beginnings in 2005, after a meeting of the WCO Council in Brussels. But it was not until 2010 when an independent document was issued where the objectives of the SAFE standard were brought together with the requirements and obligations for Customs, thus achieving the unification of the prerogatives for the improvement of security in the supply chain leaders or supply chain. Around 2012, regulations on risks and control in border areas were added, reinforced in the 2021 version to better incorporate electronic control capabilities.
What are SAFE, or Secure and Facilitate Trade, standards?
SAFE standards are established to generate customs exchanges where information flows in an interconnected manner and facilitates and promotes the anticipation of data on customs operations. All of this has several purposes: the most important is to cover intelligent control prior to export operations and their consequences after import.
SAFE was created to meet the WCO's original vision of securing control channels and promoting the facilitation of foreign trade, which has been under development for years through various digital adaptation mechanisms for customs.
This set of rules and measures is called the SAFE Framework. Its central axes are the evaluation and management of risks in operations, cooperation in customs information and security standards in all links of the marketing chain across member countries.
Dr. Guillermo Felipe Coronel in his book “Customs Law and the Internet” points out that, SAFE is a key starting point for the modernization of customs, addressing the need to become a "bridge customs office" that seeks to facilitate and secure international trade in an increasingly globalized world, with new objects and subjects becoming part of it. It also indicates that, This international standard on customs matters has clear and specific objectives, and its guidelines can be adapted to meet changes and different needs in the context of international trade. The standard is open to the need for extensions to its provisions, so as not to be impeded in the fulfillment of its own objectives.
Tools for security and control
The SAFE Framework creates and improves tools to build trust in operations. These include:
- AEO Program (Authorized Economic Operator): establishes, through security requirements and compliance with customs regulations, a category for companies/subjects that operate in international trade.
- MEC (Joint Entry Desk): a place is established to generate communion in the control and verification of goods entering or leaving the country.
- ICR (Identification and Communication of Risk): allows Customs to receive information from importers, exporters, transporters, customs agents.
- RPCF (Risk Management, Post Clearance Audit and Coordinated Border Management Framework): audits, post-release of goods, on the risks in the written declaration and border management.
- CSI or DES (Electronic Control Devices): facilitate complete traceability of the container shipment.
- OACF (Other Border Control Authorities): involves border control operations reinforced by electronic and smart devices.
How does ICAO intervene in the SAFE Framework?
The main function of the International Civil Aviation Organization (ICAO) is to establish international standards for aviation. It contributes to the SAFE Framework by implementing safety management systems (SMS) that identify risks with continuous monitoring and improve processes by training civil aviation professionals in industry-wide safety management and culture.
Regulatory implementation in Argentina
AFIP General Resolution 4150/17: Argentine Customs -within the Customs System of Trusted Operators (SAOC) program- incorporates the figure of AEO (Authorized Economic Operator) into the legislation. It outlines a series of advantages and requirements that must be met by those who wish to join it, but this resolution was repealed by AFIP General Resolution 4451/19, which modifies requirements for the adhesion of operators. It was repealed by AFIP General Resolution 5107/21.
Through General Resolution 4585/19, the Customs Broker and Customs Transport Agent are incorporated into the AEO figure and three categories are contemplated: AEO-Compliance, AEO-Simplification and AEO-Security to certify the adherents.
According to Decree 389/19, the creation of a Permanent Inter-organic Committee (CPI) is instructed within the framework of the "Authorized Economic Operator" (OAS) program with the participation of the SECRETARIAT OF FOREIGN TRADE and the SECRETARIAT OF PRODUCTIVE SIMPLIFICATION, both of the MINISTRY OF PRODUCTION AND LABOR, and private entities and/or other agencies of the National State involved in international trade that are convened for such purposes.
The Committee's purpose will be to promote procedures that reduce operating costs, facilitate foreign trade and integration with other countries, guaranteeing through them, the agile participation and effective control of the agencies involved in the customs clearance process of the goods involved in international trade operations and the adhesion of multiple operators.
The members of the aforementioned Committee will perform their duties on an honorary basis.
General Resolution 5107/21 establishes the OAS figure, establishing who are the subjects capable of adhering to the program and details the nineteen benefits that its subscribers have access to. Furthermore, it details in its annexes the digital process necessary for registration and entry into the risk matrix for categorization.
AFIP General Resolution 5299/22 extends the deadline for submitting an application for membership until November 23 of this year. Therefore, importers, exporters, logistics operators, customs operators or permit holders are still entitled to apply.
Argentina signed Mutual Recognition Agreements (MRAs) for the exchange of information with other countries: in 2019, Mercosur and in 2022, Regional incorporating Bolivia, Costa Rica, Colombia, Chile, Peru and the Dominican Republic. Currently, MRAs with China and the Pacific Alliance, which incorporates Mexico, are in process.
In our country, the first company to obtain OEA certification in the areas of simplification and compliance was BAYER last year; Toyota Argentina and three other companies are in the process of validation.
Compared to the rest of the world, the latest WCO mapping shows that Central and South America are still in the early stages of validation and certification, while North America and Europe have the largest number of certified AEOs. Meanwhile, in Asia, China stands out among the countries and in Africa there are only operators in Egypt.
Achieving the OEA-Security Certification is an objective that positions the company at a higher level regarding security and operational/customs processes. It represents reaching the highest level of customs trust, not only in Argentina but in the rest of the world.
Currently, Argentina is developing a plan for streamlining, modernization and facilitation, adapting the systems through the institutionalization of VUCE (Ventanilla Única de Comercio Exterior) that allows companies, through an electronic file system, to process various permits from entities involved in operations and approvals of para-tariff licenses for Argentine foreign trade. In addition, it allows for centralized and updated information on requirements and tax, regulatory and legal regimes for merchandise, through a simple query.
AFIP also introduced the created risk profile of the subject, which involves different spheres of control, both tax, social security and customs. This categorizes the operators into low, medium and high risk. And this categorization impacts on measures of greater or lesser control that are expected to achieve a great improvement in the future.
According to a 2022 CIRA report, the WCO estimates that in the medium and long term global costs will be reduced by 14,3% and that import operations can be completed in a day and a half (time reduction of 47%), while export operations can be completed in two days (time reduction of 91%).
Carlos Ramírez, official of the General Directorate of Customs and MBA UADE professor, says:
"The application of the SAFE Regulatory Framework (OMA), in its various updates, in conjunction with the implementation of the Trade Facilitation Agreement (WTO), presents us with a kind of marriage in terms of security of the logistics chain and the facilitation and harmonization of customs procedures, of which the figure of the Authorized Economic Operator (AEO) stands out.
This condition, together with the Single Window for Foreign Trade (VUCE), are perhaps the two instruments most worked on by the public and private sectors to date, made available and for the benefit of the operator, in the first instance, but also at the service of better border and risk management by the customs service, since by generating the flow of information required to access the aforementioned tools, customs better understand the business and the various actors involved in it.. "
Bibliography:
-OAS consultation microsite: www.afip.gob.ar/OEA/.
-OMA – SAFE framework framework:https://www.wcoomd.org/-/media/wco/public/es/pdf/topics/facilitation/instruments-and-tools/tools/safe-package/safe-framework.pdf?la=fr
– CIRA Publications
-Official Bulletin – Argentine Standards
– Colonel Guillermo Felipe – Customs Law and the Internet, 2014 (page 39/40).
Graduate in Foreign Trade (Universidad de la Marina Mercante), customs broker and customs transport agent. She works as a professor at the University of Belgrano and CAECE.
