The recent adoption of amendments and additions to the Customs Code of Turkmenistan by the Parliament of Turkmenistan is a significant step towards improving the efficiency of the country’s customs and foreign trade system.
One of the most important amendments is the introduction of the Authorized Economic Operator (AEO).
Goods belonging to legal entities included by the State Customs Service of Turkmenistan in the list of Authorized Economic Operators are processed quickly and in a simplified manner when crossing the customs border. In addition, appropriate measures are being taken to ensure that these persons can take advantage of such benefits in respect of goods that they export to foreign countries.
The concept of “Authorized economic operator” in the Turkmen legislation
Article 255 (1) provides the following definition:
An Authorized Economic Operator (AEO) is a legal entity established in accordance with the legislation of Turkmenistan that has been included in the register of AEOs and issued a Certificate of inclusion in the register of AEOs in order to simplify and accelerate customs clearance, increase the level of compliance with customs legislation by participants in foreign economic activity. A person who, for at least two years, is the owner of a temporary storage warehouse and (or) a customs warehouse, as well as (or) carrying out activities in the field of customs affairs as a customs broker (representative) is eligible to be a AEO.
What simplifications does AEO have the right to:
- making customs operations related to the import of goods into the customs territory of Turkmenistan, the export of goods from this territory, customs declaration and release of goods on a priority basis;
- conducting customs control in a priority order;
- priority participation in test projects and experiments conducted by customs authorities aimed at reducing the time and improving the procedure for customs operations;
- separate passages for vehicles of authorized economic operators at the checkpoints across the State Border of Turkmenistan;
- consulting on a priority basis on customs and other issues
- free choice of the customs authority for customs clearance of exported goods.
(The full list of simplifications is in Article 255 (5) of the Customs Code of Turkmenistan.)
An Authorized Economic Operator (AEO) is defined by the WCO SAFE Framework of Standards as a party involved in the international movement of goods, in whatever function, that has been approved by, or on behalf of, a national Customs administration as complying with WCO or equivalent supply chain security standards. AEOs include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors.
The WTO defines an Authorized Economic Operator as a subject of international trade that carries out its activities in accordance with WTO standards or the principles of ensuring the security of the supply chain of goods.
As it is obvious from the definitions, the introduction of the Authorized Economic Operator (AEO) institute in Turkmenistan will facilitate aligning the country’s customs and foreign trade procedures with international best practices. The AEO is expected to optimize foreign economic operations and boost Turkmenistan’s foreign trade relations. ///nCa, 6 October 2023
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