Summary Report – Authorized Economic Operator (AEO) Workshops - Lima

The initiative aims to strengthen supply chain security and facilitate trade through customs-to-customs and customs-to-business partnerships. International agreements and guidance, such as the Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) of the World Customs Organization (WCO), provide a framework for AEO programs. These standards facilitate trade and secure supply chains through customs-to-customs and customs-to-business partnerships. AEO programs recognize businesses that comply with WCO or equivalent supply chain security standards, thereby strengthening those partnerships. USAID | Facilitando Comercio promotes the implementation of an AEO program suitable for Peru. The initiative supports Peruvian Customs and other government agencies in promoting the implementation of an AEO program. The program presented the Spanish version of the AEO handbook, produced by USAID's TexBoost project, to the attendees of three workshops. This handbook offers guidance, examples of best practices, and tools for counterparts in partner countries and technical assistance providers. The workshops were conducted in partnership with an international customs expert and targeted three groups: the Customs Authority, public agencies involved in foreign trade-related procedures, and the private sector, including local chambers of commerce, trade unions, trade unions, and broker organizations. Representatives from the Customs Authority attended all three workshops. The workshops provided an opportunity to launch the handbook and distribute the public officials and private sector representatives. The workshops also presented an opportunity to explain the implementation process and implementation process of an AEO program. The workshops were conducted in partnership with an international customs expert and targeted three groups: the Customs Authority, public agencies involved in foreign trade-related procedures, and the private sector, including local chambers of commerce, trade unions, trade unions, and broker organizations. Peruvian Customs has taken preliminary steps towards implementing an AEO program. However, the implementation team does not have a clear idea of how to proceed, and the concept of developing the program in partnership with the private sector has not been considered. An effective Customs AEO program implementation team should have representatives from risk analysis, human resource management, policy and development, post-clearance audit controls, information technology, legal and policy advice, and public information. The team can have both full-time, part-time, and ad-hoc members. During the workshops, the USAID AEO Program implementation handbook was discussed, and Customs indicated that they plan to use the 12 steps explained in the handbook as their guide. The technical advisor explained that it is best to start small, addressing one aspect of the supply chain that has the greatest impact on Peru's economy, for example, exports. Pilot the requirements and process for exports, make adjustments as necessary, and when ready, expand to other links of the supply chain. Customs expressed their concern over how to secure the transportation link for transportation. The technical advisor offered two suggestions: first, for Customs to develop a solution to this potential problem with the exporters participating as an AEO to utilize transporters who agree to also meet security and safety standards, and second, to utilize high-security containers. Customs must work with the private sector to develop a common understanding of the conditions and requirements of AEO status. As a first step, there must be a clear understanding of the tangible benefits to be realized by participation in the SAFE framework and the AEO program. Clear and tangible benefits will provide an incentive for private sector participation. To assist Customs in developing an AEO program, an implementation plan is included as part of this report. It is critical that Customs NOT skip steps three and four of the USAID Handbook. The time and effort expended in defining the project and developing an implementation plan will deliver benefits in the long term. Continued technical assistance should be provided to Customs as they develop the requirements, benefits, and process for their AEO program. Approximately 50 representatives from both the private and public sectors attended the workshop. In addition to the presentation on the USAID AEO Handbook and an introduction to AEO by the technical advisor, presentations were made by the IDB and Colombia DIAN. Attendees expressed their interest in participating in an AEO program, however, with reservations due to a past history of mistrust between Customs and the trade. In response, Customs stated that the next step they intended to take was to invite the private sector to assist in developing an AEO program following the steps outlined in the USAID handbook. General introduction and explanation of AEO were provided to approximately 50 representatives from the public sector. In addition to the presentation on the USAID AEO Handbook, presentations were made by the IDB and Colombia DIAN. An open discussion followed, and consensus was reached on using the USAID handbook, starting small, and considering perishable exports for the pilot, and the importance of a public-private sector alliance. Developing an AEO program is specific to the needs and requirements of a country. What is applicable to Peru may or may not be