Customs evolves because international trade itself does so. The need to streamline and increase the traffic of goods between nations forces the customs service to migrate towards Smart controls and facilitators, mutating into a modern customs office and adopting the character of another link in the chain of traceability of imports and exports. Without this meaning moving away from its fundamental essence, the proper exercise of control.
The SAFE Framework, which the World Customs Organization (WCO) itself drafted in an attempt to generate the conditions to optimize and ensure the facilitation of international trade, protecting its proper functioning against illicit actions, has served as a stimulus for foreign trade actors.
One the tools that the prominent SAFE Framework advocates, which different Customs authorities around the world have been implementing, is the Authorized Economic Operator (AEO). This new subject is positioned with greater strength when it comes to carrying out all actions aimed at importing or exporting. Obtaining benefits in the fluidity of operating procedures, through reduction of controls, generates reduction of time, costs and greater legal securityThis translates into better competitive positioning in relation to buyers and sellers of goods and services.
Currently, nations are generating agreements, not only bilateral, but regional to Promote OAS programs for multilateral use, based on mutual recognition.
In this sense, the objectives of this program, which creates a new player in international trade, have a favorable impact on both customs and each of the parties involved in the international supply chain.
Although membership is voluntary today, the facilitation and security that comes with being an Authorized Economic Operator, Not only in front of the Argentine customs service, but also in front of the rest of the customs, they warn of an increase in Interest and need to be an OAS.
Some considerations on the OAS in Argentina
Is it valid in Argentina?
Yes, Argentina has adopted this program and there are subjects who have acquired such character.
Who is the competent authority?
It is the General Directorate of Customs, through AFIP resolution 4451/2019, regulations that establish the guidelines of this program.
Who can be an OAS?
Importers, exporters, customs brokers, customs transport agents, carriers, permit holders of fiscal warehouses, cargo terminals, postal service providers (PSP/Couriers) and all subjects related to foreign trade and members of the international supply chain can access it.
Are there categories?
Yes. Each category must meet the following requirements: 1. OAS-COMPLIANCE: tax compliance and business records system. 2. OAS-SIMPLIFICATION: tax compliance, business records system, financial solvency. 3.OAS-SECURITY: tax compliance, commercial records system, financial solvency, technological and risk matrix requirements.
What benefits does it have?
Depending on your category, you will have some or all of the following benefits:
1.Safety training. 2. OAS dialogue space. 3. Advertising of the OAS categorization. 4. Exclusive service channel. 5. Priority in the event of contingencies. 6. Operational simplification. 7. Priority at borders.8. Benefits derived from mutual recognition agreements. 9. Guarantees: OEA programme operators can count on a global guarantee that covers their performance. 10. Selectivity: Operations will be carried out through the green channel, without prejudice to the possibility of applying intelligent selective control - red or orange channel. 11. Systematic process of presentation, computer registration and customs documentation –self-management- for the program operations. 12. Physical-systemic, remote and selective process of consolidation and deconsolidation -self-management-, selectively monitored by the Single Customs Monitoring Center.
Operators who achieve the AEO-compliance category will have the benefits indicated in points 1 to 4, and those in the AEO-simplification category, those indicated in points 1 to 6 and those in the AEO-security category, all of the benefits.
What is the procedure and the cost?
The application for admission as an AEO is free and voluntary. All foreign trade operators or members of the international supply chain are admitted. At the date of formalization, they must have been registered in the single taxpayer registry (PUC) for 3 years or more.
What requirements are nedeed to fulfill?
Customs, taxes and social security resources:
Failure to register failure to submit sworn declarations or failure to pay any required fees corresponding to tax, customs or social security obligations due during the 12 months prior to submitting the application.
Not having a prosecution opinion for tax, social security or customs offences. This includes managing partners or directors of legal entities.
Not having a prosecution order for common crimes that are related to non-compliance with tax, social security or customs obligations. This also includes officials or former officials and managing partners or directors who have a prosecution order for the exercise of their functions.
Commercial:
Maintain up-to-date, accurate, complete and verifiable records of import/export operations. To do this, you must have a computerized stock management system that allows control of the merchandise in each of the facilities and be equipped with a security system that prevents data loss and has audit trail control.
Solvency:
Prove that the entity has the necessary assets and resources to meet the financial obligations and commitments acquired to carry out commercial activity, that the financial situation is stable and can meet the investment required to implement and maintain the conditions for membership as an AEO.
Safety:
Comply with the security requirements that correspond to the position and activity within the import and export logistics chain: 1.Security of business partners. 2.Container and other cargo unit security. 3. Physical security of the facilities. 4. Staff security. 5. Security of people accessing the facilities. 6. Security of the merchandise. 7. Staff training in security and internal and external threats to the company. 8. Planning of the logistics chain. 9. Security and safeguarding of information. 10. Technological security. 11. Security of the supply chain, through a matrix that allows threats to be identified, analyzed and assessed, developing a plan and measures to mitigate them.
What are the obligations?
1.Maintain compliance with all the requirements that were demanded for its categorization. 2.Maintain the support guarantee required by the categorization achieved. 3.Maintain tax compliance records. If any of them are modified, the operator must notify the General Directorate of Customs within 72 hours of the change.4.Provide all the material and human resources required to facilitate the operation. 5.Communicate 3 days in advance any significant change that affects customs operations so that the General Directorate of Customs can take the appropriate measures. 6.Keep your accounting records up to date. 7.Adopt the guidelines set by the customs service regarding security. 8.Establish an open and permanent exchange of data with the customs service, especially those related to the security of the logistics chain and trade facilitation measures. Communications made in this regard will be confidential. 9.Not to cease operating as an AEO for a period of 8 months. 10.Do not export or import goods without the corresponding authorizations from other organizations. 11.Comply with safety standards in your logistics chain. 12.Inform the customs service of any irregularity or inconsistency noted that suggests the existence of conduct in violation of the Customs Code, in a reliable and immediate manner. 13.Not having been convicted by a final judgment for violations that accumulate in their CIF and FOB values an amount greater than 4% of the total traded in the last 12 months.
Can they be sanctioned?
Yes. The following sanctions may be applied for non-compliance:
1. Modify the category rating to the next lower one or to the one estimated by the customs service. 2.Suspend the authorization to act as OAS. 3.Revoke the authorization to act as OAS. 4.Preventive suspension or revocation of the AEO when it fails to comply with the terms and conditions that supported its adherence to the program.
Warning
Tax debts or non-compliance by the operator and its directors. Delays in reporting changes in the corporate structure or business relationships. Any breach of obligations. Non-compliance with notices or requirements relating to the program.
Suspension
Being sanctioned with 3 warnings within 12 months. Failure to report to the customs service any failures in technological/security systems or delays in their correction. Detection of non-compliance (preventive suspensions).
Revocation
An operator who has been sanctioned with 2 suspensions applied within a period of 12 months may have its authorization to act as an AEO revoked.
If a revocation is made, the operator will not be able to use the program again until 12 months have elapsed since it is confirmed that the causes that gave rise to the revocation have been corrected.
Source: AFIP
Guillermo Felipe Coronel is a lawyer specializing in Customs Law
The author is a lawyer and member of the Institute of Customs Law and International Trade of the Argentine Association of Constitutional Justice.
