Icelandic businesses that play a role in the international supply chain and meet specified compliance and security standards may apply to the Iceland Revenue and Customs for Authorised Economic Operator (AEO) certification.

The program is designed to strengthen the security of international supply chains while facilitating legitimate trade and the movement of goods across borders.

What Does It Mean to Be an Authorised Economic Operator?

The AEO programme is a certification scheme based on the World Customs Organization’s SAFE Framework of Standards.

AEO certification demonstrates that a business has earned the trust of customs authorities both in Iceland and internationally. The risk assessment carried out as part of the certification process helps customs authorities and business partners recognise the company as a reliable participant in the supply chain.

Certification confirms that the business complies with applicable laws and regulations and maintains high standards in its customs-related operations.

Applying for AEO certification with the Iceland Revenue and Customs Authority is voluntary.

AEO certification is available to:

• Importers and exporters

• Carriers and transport operators

• Customs brokers

• Warehouse operators and custodians of goods

• Manufacturers

Requirements for AEO Certification

The requirements that businesses must meet to obtain AEO certification can be grouped into five main categories:

• General requirements

• Financial solvency

• Compliance with customs and tax legislation

• Appropriate accounting and logistics systems

• Adequate security standards and operational procedures

Benefits of AEO Certification

Businesses that obtain AEO certification benefit from international recognition. An AEO-certified business is regarded as a reliable and trustworthy trading partner both domestically and internationally.

The main benefits of AEO certification stem from the increased level of trust placed in the company by customs authorities and from the positive reputation associated with certification. In practice, this means that certified operators are less likely to be selected for routine customs controls.

In addition, mutual recognition agreements with Iceland’s key trading partners may result in reduced information requirements for exports and facilitate the movement of goods across borders.

Direct Benefits

• Reduced information requirements

• Advance notification of cargo inspections

• Fewer customs and physical inspections

• Priority treatment when inspections are required

• The possibility of choosing the inspection location

Indirect Benefits

• A recognised mark of quality and reliability

• Implementation of best practices in supply chain security

• Increased awareness of security procedures and controls

• Improved oversight of business operations

• Enhanced cooperation with the Iceland Revenue and Customs Authority and recognition by customs authorities in other countries