Autumn 2007

Could companies trading on international markets find their opportunities constrained by new requirements imposed in the drive to combat terrorism? That's the warning from RedPrairie, the supply-chain software specialist.

Not surprisingly, RedPrairie has software solutions to help operators deal with increasingly strict requirements, but its comments are salutary nonetheless.

The company expresses particular concern that UK businesses are failing to appreciate the significance of gaining 'Authorised Economic Operator' status. It points out that although this is only a voluntary scheme, accreditation could soon become effectively a commercial necessity for importers, warehouse operators, freight forwarders, agents, carriers and manufacturers

The reason, says the company, is that it will demonstrate that the holder has implemented secure and safe practice in shipping in and out of the EU, and also that it is compliant with US's Customs Trade Partnership Against Terrorism (C-TPAT). Yet it says only half of affected UK companies have appropriate systems in place.

 

To secure accreditation, companies need to apply to their national customs authority. This process has begun throughout the EU; UK Customs authorities will begin to process AEO applications from 1 January 2008. Companies are assessed on factors such as financial solvency, compliance record and safety and security standards.

RedPrairie's solution, by the way, is its AEO-compliant Customs and Duty Management product, which provides a full audit trail of customs activities and allows authorities access to records. It clearly distinguishes between European Community and non-Community goods, handles relevant licences and authorisations and provides archiving facilities to protect against loss of information.