4 years of the AEO programme in Ukraine: despite the war, business continues to demonstrate European pace of engagement

Despite the full-scale war, Ukrainian business continues to demonstrate high dynamics in obtaining the status of Authorised Economic Operators (AEO): over 4 years of the programme, 48 Ukrainian companies have received 50 AEO authorisations (as of 01.08.2024). This status gives businesses the highest level of trust and a number of simplifications in customs procedures.

This dynamics of Ukrainian companies coincides with the dynamics of most EU countries in the first 4 years of the implementation of the programme, and in some cases exceeds it.

For comparison, the dynamics of AEO in the first 4 years of the programme in the EU (2008-2011):

• most countries (17 Member States) had a similar (Denmark, Ireland, Slovenia, Czech Republic) or lower (Finland, Romania, Slovakia, Bulgaria, Greece, etc.) rate of increase in AEO authorisations;
• 8 countries had a higher rate of increase in AEO authorisations, including the UK*, Austria, Belgium, and Sweden;
• out of the 28 EU countries, only 3 countries (France, Germany, the Netherlands) increased their AEOs at a much higher rate than Ukraine. It is important to note, however, that these countries generally have much stricter requirements for companies to store and restore documents and other business processes, the reliability of which is a condition for obtaining this status. Therefore, the authorisation of companies in these countries did not require a large number of additional requirements.

There is every reason to expect a positive trend in the number of AEO authorisations obtained by Ukrainian businesses: the State Customs Service is currently considering 31 more applications. This demonstrates the interest of domestic businesses in obtaining AEO status.

As a reminder, AEO is a special status that demonstrates a high level of trust in a business entity. This status provides customs simplifications and benefits in international trade, which can also compensate for a number of difficulties at the border caused by external circumstances. Despite all the challenges faced by Ukrainian businesses under martial law, the AEO status opens up opportunities for companies to develop and compete in foreign and domestic markets.

In Ukraine, the AEO programme was launched in August 2020 after the adoption of the necessary legislative changes and bylaws in the process of approximation to European customs law and standards of foreign economic activity.