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Published on November 3, 2007

Suchart Chantaranakaracha was a key speaker at a seminar entitled "Doing Business with the EU", talking about how Thai companies can benefit from the Union's supply-chain security measures. The seminar was held in Bangkok by the Delegation of the European Commission to Thailand.

Suchart told more than 400 stakeholders that the EU's supply-chain security requirements should facilitate exporters - especially small and medium-sized enterprises - in applying for Authorised Economic Operator (AEO) status.

Last December, the European Commission - the executive branch of the EU - adopted a regulation aimed at increasing security for shipments entering or leaving the Union.

From January 1, 2008, traders respecting certain criteria will be able to apply for AEO status. This will allow them to benefit from trade facilitation measures when importing goods into the EU or exporting goods from it.

In addition, from July 1, 2009, an electronic exchange will be introduced of advance information between traders and customers and government authorities on all goods entering or leaving the EU.

Suchart said Thai exporters should benefit from AEO certification. They will be given a better score in risk-analysis systems, get priority treatment for controls, submit less data for pre-arrival or pre-departure declarations, and work under fewer controls.

Meanwhile, consumers will benefit from safer and better-quality products and services, although higher logistics costs derived from AEO certification will lead to higher prices.

With the increase in US and international trade-security measures, Suchart said Thai exporters had been adjusting themselves to the new situation since 2002. The measures include the Container Security Initiative (CSI), the Customs-Trade Partnership against Terrorism (C-TPAT), and a 100-per-cent scanning and tracking system.

Pierre Faucherand, minister-counsellor (customs) of the Delegation of the European Commission to Thailand, said at the seminar that the fight against terrorism and the protection of citizens were challenges for all countries. The priority is to secure the international supply chain to prevent possible terrorist activities or the illicit trafficking that often provides funding for such activities.

"Balanced measures must be put in place for better monitoring of international trade flows, while at the same time ensuring that trade is not hampered," he said.

Faucherand said the EU was willing to develop customs cooperation with its partners in order to ultimately ensure mutual recognition of AEOs and controls whenever possible.

"This would be to our mutual benefit, as it would allow matching security objectives and trade facilitation measures," he added.

The EU regulation is consistent with commitments taken in June 2005 within the World Customs Organisation in the context of the WCO-SAFE framework, which 150 countries including Thailand have committed to implement.

Obtaining AEO status will not be mandatory for traders, but it will be taken into account by the risk-analysis process used by customs to evaluate shipments.

Criteria for obtaining AEO status include an appropriate record of compliance with customs requirements, a satisfactory system for managing transport records, proven financial solvency, and appropriate security and safety standards.

Sasithorn Ongdee

The Nation