CBP Outlines EU Mutual Recognition Benefits, Says Brokers Won't Directly Benefit
CBP posted a list of frequently asked questions (FAQs) that outline the procedures and benefits of the mutual recognition program between the U.S. and the European Union. The program was recently implemented and is said to allow for better risk analysis through acceptance of the respective trusted trader programs -- Customs-Trade Partnership Against Terrorism (C-TPAT) in the U.S. and Authorised Economic Operator (AEO) in the E.U. The FAQs say neither C-TPAT nor AEO customs brokers will directly benefit.
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AEO certified manufacturers and exporters will directly benefit from reduced risk scores due to the agreement, as will C-TPAT importers that also export, the document said. AEO certified freight forwarders and AEO/C-TPAT certified sea or air carriers may benefit indirectly from the mutual recognition, it said. C-TPAT manufacturers can also benefit if it acts as the exporter in a transaction, said the FAQs. Neither C-TPAT nor AEO customs brokers will directly benefit from the mutual recognition "for the time being," it said.
The U.S. and E.U. are able to exchange seven pieces of data as a result of the mutual recognition, the FAQs said. They include:
- name of operator;
- address;
- status of membership;
- validation or authorization date;
- suspensions and revocations;
- the unique identification number (EORI number or C-TPAT Account number); and
- details that may be mutually determined between the customs authorities, subject, where applicable, to any necessary safeguards.
(See ITT's Online Archives 12050726 for summary of the agreement between CBP and the EU. See 13021113 for summary of the implementation of mutual recognition.)