Customs simplifications and authorised economic operator status

On 7 November 2019, Ukraine launched the AEO programme to fulfil its obligations under the EU-Ukraine Association Agreement.

Introduced by the World Customs Organisation, AEO-status is an internationally recognised programme that has been adopted in more than 80 countries. It provides a voluntary standard framework that confirms the reliability of a company involved in international supply chains. Today, about 75% of customs clearances in the EU involve companies with AEO status. 

For this reason, the Ukrainian government strongly encourages local companies obtain this status and thus benefit from simplified custom procedures.

Furthermore, effective 7 November 2023 all exports and imports of goods to and from Ukraine must be presented to the relevant Ukrainian customs authorities, meaning that it is highly likely customs procedures will become more complicated and costly. However, there is an sole exception for companies with AEO-C status and/or authorisation to apply "release-at-location". These companies can request that customs control be diverted to an alternative location which might offer a shorter delay and/or lower costs.

Obtaining AEO-C status or other authorisation for customs simplifications require considerable effort on the part of a company: you’ll need to review and describe existing processes and procedures in detail, involving all departments (e.g. finance, IT, HR, etc.) in a comprehensive interaction to ensure that all the required processes and internal controls are in place and properly organised.

At the same time, AEO-C status or other authorisation enables companies to take advantage of simplified customs procedures; speeding up customs clearance processes and reducing risk.

1. Faster movement of goods across the customs border.
2. Faster customs clearance due to, for example, first-pass customs formalities.
3. No need to visit the customs terminal and a reduced cost for services.
4. Reduced logistics costs.
5. Lower risk and reduced number of customs inspections of goods, fewer requests for documents, i.e. to confirm customs value.
6. Unlocks financial resources through guarantees instead of preliminarily depositing funds to cover customs fees.

We offer full support to companies in the process of obtaining AEO status and/or custom simplification authorisation and can provide you with point-by-point advice on issues that may arise in this process.

As part of these diagnostics, KPMG will: 

• Analyse your company's compliance with AEO criteria, examine documents regulating your company's procedures, interview company employees, and assess the relevant customs, tax, and legal risks.
• Provide recommendations on selecting the appropriate authorisation as outlined in the relevant Ukrainian legislation and help determine the best option for your company to get customs simplification authorisation, keeping in mind the specifics of your company's operations and cross-border activities.
• Provide recommendations to bring your company's status in line with AEO-status criteria or customs simplification authorisation.

• Improving documents that regulate your company’s procedures and processes.
• Developing and implementing new procedures, drafting regulations (policies) necessary to obtain the relevant authorisations.
• Conducting trainings and preparing employees who may be interviewed in the process of assessing your company's compliance with authorisation criteria.

KPMG is an experienced and reliable advisor to large companies all over the world. Our in-depth knowledge and practical experience in obtaining AEO status, as well as our comprehensive understanding of how to organise your company’s procedures and processes, customs legislation, accounting, and the specifics interacting with government agencies, all ensures that our clients successfully pass all stages when seeking AEO status and/or customs simplification authorisation.

Our joint project engage a highly-qualified company to enhance our offer with:

• In-depth technical and practical knowledge of customs legislation
• Knowledge and understanding of the Ukrainian customs authorities' approach to organising international supply chain processes
• Vast experience in assisting companies with optimising and establishing foreign trade processes
• Successful experience in preparing for customs simplification authorisation applications

We have a team of professionals specialising in legal, tax, and customs matters. When working with a client, we assess the situation in a holistic manner; considering all relevant aspects to offer comprehensive solutions and ensure the best possible outcome for our client.

We are always ready to meet new challenges, successfully developing innovative strategies based on our extensive experience and proactive approach in supporting diverse projects. Our flexible approach is customised to meet unique company needs, and we make every effort to understand our clients and their business to offer the most efficient and effective individualised solution.