F
Brazilian AEO Program
International Trade Security and Compliance
Normative Instruction
RFB no 1598/2015
Implementation Stages
Brazilian AEO Program
AEO Security(AEO-S)
Certification based on SECURITY requirements
Dec/2014
AEO Compliance(AEO-C)
Certification based on compliancewith TAX and CUSTOMS legislation
Dec/2015
AEO IntegratedCOOPERATION between Customsand other government agencies
Nov/2018
Brazilian AEO Program
AEO SECURITY – AEO-S
Certification based on SECURITY requirements:
Importers/Exporters Freight Forwarders Carriers Port Operators Airport Operators Customs Warehouses REDEX (special enclosure for export
customs clearance)
AEO COMPLIANCE – AEO-C
Certification based on compliance with TAX and CUSTOMS legislation:
Importers/Exporters, tiers 1 and 2
SELF-EVALUATION
Brazilian AEO Program
AEO INTEGRATED
Complementary module that includes other governmental control agencies into the AEO Program:
Each control agency is responsible for: Definition of requirements, trying not to create
repeated demands Definition of benefits and methods of
implementation Analysis, validation, monitoring and review Issuance of specific normative acts
MainModule
ComplementaryModule
Other ControlAgencies
TEN STEPS TO AEO INTEGRATED
AEO-AGRO
Ministry of Agriculture
RFB and SDA Joint Initial Ordinancesigned on 12/13/2016
AEO-AGRO – NEXT STEPS:
Certification of operators participating in the AEO-AGRO pilot:
Exporter: • BRF, unit of Capinzal/SC
Importers: • Adama• Basf• Bayer• Dupont• Iharabrás• Syngenta
Integration of the AEO-AGRO certification process into the AEO System in the Single Portal Siscomex in March, 2019.
Current Situation: STEP 10
Normative Instruction SDA no 45 of 10/30/2018 that regulates the AEO-Agro
Joint Ordinance RFB / SDA no 1849 of 11/28/2018 that allows operations
Brazilian Army Civil Aviation
Current Situation: STEP 3
Definition of the work process to be intregrated an the benefits to be granted
Current Situation: STEP 3
Definition of the work process to be intregrated an the benefits to be granted
AEO-Integrated
Current Situation: STEP 1
Technical knowledge and strategicdecision
Signature of the initial JointOrdinance
Health Surveillance
RFB and Army Joint Initial Ordinance signed on 03/14/2018
RFB and ANAC Joint Initial Ordinance signed on 06/13/2018
AEO Certification Process
AdmissibilityRequirements
EligibilityCriteria
SpecificCriteria
Eligible to take part
Reliability of Operators
Security Criteria and/orCompliance Criteria
1 2 3 4
Brazilian AEO certification process consists of the evaluation of the management process to minimize the risks existing in foreign trade operations
Seven Regional AEO
Certification Centers
AEO Exclusive
Servers
AEO Monitoring
Post-Certification
Temporary Exclusion
Art. 21. The verification of non-compliance with the conditions for permanence in the AEO Program may result in the exclusion of the certified operator as AEO.
Grading of benefits
Art. 8 § 1 The benefits may be of a general nature or granted in accordance with the certification modality, the role of the operator in the logistics chain or the degree of compliance.
Participation of AEO
in Brazilian foreign trade
5 21 85164
219
500
5% 6%12% 14%
19%
50%
0
100
200
300
400
500
600
2014 2015 2016 2017 2018 Meta 2019
0%
10%
20%
30%
40%
50%
60%
AEO Certified Quantity (ID+ED)/total
Source: DW Customs RFB - Until December / 2018
AEO Statistics
Source: CRM RFB - Until December / 2018
https://receita.economia.gov.br/orientacao/aduaneira/importacao-e-exportacao/oea/estatisticas-do-programa-oea
UNDER ANALYSIS = 247 CERTIFIED FUNCTIONS= 219
The main difficulties of the
AEO Program
Annual savings resulting from the increase in customs efficiency
Source: GDyn Model. Elaboration Lucas Pedreira do Couto FerrazGETÚLIO VARGAS FOUNDATION - EESP - SCHOOL OF ECONOMY OF SÃO PAULO
Impact of the AEO Program in 2030:
Annual Savings Resulting from the AEO Program (US$ million)
Learn more: https://receita.economia.gov.br/orientacao/aduaneira/importacao-e-exportacao/oea/noticias/2018/seminario-internacional-oea-nas-americas/impacto_do_programa_oea_web.pdf
AEO Benefits S C1 C2
List on RFB WebsiteUse of the AEO Program Logo Specially appointed AEO Customs Support OfficerPriority when applying for a different AEO Type or TierMutual Recognition Agreement Benefits (MRA)RFB and AEO certified members joint workshops and trainingsActive participation in updating AEO-related laws and Customsprocedures (Consultive Group)Requirement waiver when applying for special Customs regimes
XXXXXXX
X
XXXXXXX
X
XXXXXXX
X
Real time channel definitionLower rate of document and physical controls in EXPORT operationsPriority on document and physical controlsGuarantee waiver for transitPriority access to the AEO carrier (Customs Warehouses)
XXXXX
Priority on AEO Classification of Goods Decision (maximum 40 days)Guarantee waiver for temporary admission24h free storage in a special area for air cargo coming directly from abroadReal time channel definitionLower rate of document and physical controls in IMPORT operationsPriority on document and physical controlsPermission to submit the import declaration prior to the goods arrival
XXX
XXX
XXXX
Lower rate of document and physical
controls in import and export operations
Average reduction: 64%Average reduction: 67%
Source: DW Customs RFB - Until December / 2018
4,23% 4,10% 4,02%
7,54%7,13%
8,30%
1,83%
3,00%
2,10%2,47% 2,48%
1,44%0,00%
1,00%
2,00%
3,00%
4,00%
5,00%
6,00%
7,00%
8,00%
9,00%
jul/18 aug/18 sep/18 oct/18 nov/18 dec/18
Export (AEO-S)
Non-AEO AEO
5,67% 5,77%5,35% 5,50% 5,53% 5,58%
1,54% 1,58% 1,63% 1,88% 1,64% 1,79%
0,00%
1,00%
2,00%
3,00%
4,00%
5,00%
6,00%
7,00%
jul/18 aug/18 sep/18 oct/18 nov/18 dec/18
Import (AEO-C2)
Non-AEO AEO
AEO Water Cargo Clearance
Permission to submit the import declaration prior to the goods arrival in a Brazilian Port
Ordinance Coana no 85/2017
GREEN CHANNEL ~ 98%
(Automatic Release)
CHANNELS ~ 2%
• YELLOW (Document Inspection)
• RED (Document and Physical Inspection)
Port of Origin Brazilian Port
Since 23/07/18, the benefit is available in all Brazilian Ports
Only for
AEO-C2
ID Submission
Average Gross Time - Import Customs Clearance
Time in hours - AEO vs. Non-AEO
5,24 6,01
10,25
4,59 4,86 5,60
10,45
5,19 5,00 4,22 4,06
7,48
26,89 28,63
27,15 28,90
27,26
33,50 36,48
29,05 27,51
26,26 25,28 24,52
-
5,00
10,00
15,00
20,00
25,00
30,00
35,00
40,00
jan/18 feb/18 mar/18 apr/18 may/18 jun/18 jul/18 aug/18 sep/18 oct/18 nov/18 dec/18
AEO Non-AEO
Source: DW Customs RFB - Until December / 2018
First Brazilian MRA:
Uruguay - 12/13/2016
Mutual recognition of EXPORTERS and CARRIERS
Express Border Units:• Chuí (BR) - Chuy (UY)• Jaguarão (BR) to Rio Branco (UY)• Santana do Livramento (BR) - Rivera (UY)
Benefits:• Simultaneous initiation of export formalities• Joint physical inspections in Integrated Control Areas• Priority on document and physical controls• Priority access to the AEO carrier (Customs
Warehouses)
Joint Work Plans:
05/29/2015 - Signing with the United States
11/18/2015 - Signing with Argentina
11/19/2017 - Signing with Bolivia
04/17/2018 - Signing with Mexico
11/27/2018 - Signing with Peru
MRA: Next Steps
AEO Regional MRA
11/27/2018 - Signing of the Declaration of São Paulo –aiming at the AEO Regional Agreement of Mutual Recognition, within the Americas, including Mercosur member countries and the Pacific Alliance.
MRA: Next Steps
Plan de Trabajo Conjunto
22/02/2019 – Previsión de la firma con China
Learn more:
receita.economia.gov.br