Authorized Economic Operator (AEO) Programme IMPACT REACH Trade Facilitation and Special Projects Unit “Enhancing economic growth and development through trade facilitation”
AEO Impact Study Rationale The AEO Programme was introduced to Jamaica in 2009 and has undergone some changes; the major change took place in 2013 when the programme was revamped and officially launched in July 2014. Since the implementation of the Programme no assessment has been undertaken to determine whether or not the AEO programme had impacted trade facilitation. It was on this premise that the Trade Facilitation and Special Projects Unit of the Agency decided to embark on a study to determine the level of benefits if any the AEO members have been enjoying.
Objective of the Study: Assess the impact of the AEO certification on Trade facilitation in Jamaica with specific focus on: The benefits received by importers; AEO impact on Trade; and Analyzing the findings as a measure of Trade Facilitation.
Method of Data Collection In order to gather the information to complete this study, a survey questionnaire was sent to AEO participants soliciting feedback about their experiences on the Programme. Data was also gathered from ASYCUDA and Tableau; as well as, the Site Inspection Unit to ascertain the volume of AEO shipments, level of inspections and results from inspections conducted.
Presentation of Data The standard average release time across the Agency from which AEO participants have benefitted. Declarations with “green lane” designations are afforded immediate release. (This means there is no customs intervention required). Declarations with “yellow lane” designations are released within three (3) hours. Declarations with “red lane” designations are released within 24 hours.
Presentation of Data Chart Title 45000 AEO Declaration Jan 1 - Dec 31, 2019 1.84% 40000 2% 35000 42108 30000 98.16% 25000 773 98% 20000 Declations Selected for Random Inspection 15000 Data showed that for the 10000 period January 1 to December 31, 2019 there 5000 were 42,108 declarations 0 lodged by AEOs and of this total only 773 were selected for random inspection. 41,335 green lane assignment Total AEOs Declarations
Presentation of Data: Responses were collected from 21% of participants on RESPONSES FROM SURVEY the AEO Programme. 21% 79%
Presentation of Data: Have you benefited from the AEO Programme ? 0% 100% Yes 100% No 0% All Responses to this question were in the affirmative.
Presentation of Data: Benefits of the AEO Programme 83% 90% 83% 86% 90% 100 10% 17% 14% 10% 80 Expedited Assignment of Coordinated Improved Clearance at AEO Account Expedited Security as a 60 the Ports Manager Process by JCA resulted of 17% & BRAs Inplemented 40 policies & Procedures 20 0 Improved Security & Communication between Supply Chain Partners Yes NO
Presentation of Data: Other benefits received: Staff has become more security conscious and risk aware; Company better able to schedule work (predictability when container will be received); Improved company reputation/goodwill as a result of AEO certification; and Faster resolution to queries due to single point of contact (POC).
Presentation of Data: If you could change one thing about the AEO Programme, what would it be? Validity of Reapplication/ More training for JCA policy on how certification from recertification is companies and shortages are treated 3 to 5 years too lengthy their point of (lack of reciprocal (need to be contact (POC) relationship) inequity simplified)
Recommendations: The JCA should collaborate with all BRAs to see how best they can ensure that all AEOs benefit from the Collaborative border approach. The Government of Jamaica through the JCA and MICAF should seek to promote the AEO programme encouraging the International trade community in Jamaica to pursue AEO certification. The Agency should revisit the policy/regulation regarding shortages specifically for AEOs to ensure there is equity and reciprocal benefits.
Conclusion Jamaica’s AEO programme since it’s implementation has contributed significantly to Trade Facilitation. This is evident as the data shows the following: Time taken to clear declaration (41,335 immediate release); Utilization of scarce resources (Staff); Better working partner relationship with the trade; Less intervention through the assignment of AEO Account Managers; and Lower risk through the implementation of the AEO security requirements.
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