12 October 2016
Muscat - The Directorate General of Customs, Royal Oman Police, will begin designating suitably certified Omani firms as ‘Authorised Economic Operators’ (AEOs) — a label that will entitle such businesses to simplified customs procedures. The measure, formulated as part of far-reaching efforts by the government to drive the development of a logistics sector in the Sultanate, will be introduced effective from early 2017, according to an official of Oman Global Logistics Group (OGL), the state-owned holding company mandated to deliver on the nation’s ambitious logistics strategy.

The Authorised Economic Operator (AEO) programme, which will be implemented by the Directorate  General of Customs, aims to certify companies demonstrating ‘a strong track record of customs compliance, processes and systems that ensure adequate customs controls, financial solvency, and physical and security standards’, said Al Khattab al Maani, Programme Manager of Trade Facilitation at Oman Global Logistics Group. Details about the programme were presented at a recent orientation session hosted by the Directorate General of Customs outlining facilities provided to local businesses in support of trade facilitation.

Present at the event were officials representing ports and free zones, Oman Airports Management Company, shipping companies and agencies, customs clearance firms, courier companies, and government stakeholder bodies. Presenting a paper on the AEO programme, Al Maani said businesses designated Authorised Economic Operators will be treated as ‘lower risk’ by Customs, and will thus be subject to reduced compliance inspections and simplified import and export documentation requirements.

Through this programme, Oman Global Logistics Group will be able to establish strategic partnerships with businesses to ensure security of the international supply chain and facilitate global trade, said OGL in a newsletter underscoring the significance of the initiative.

The programme, coupled with the Single Electronic Window for customs that was rolled out by the Royal Oman Police last year, promises to dramatically ease customs procedures governing the clearance of goods at the Sultanate’s land, sea and air borders.

Also known as the Bayan System, the Single Window integrates all of the regulatory agencies and government stakeholders into a one-stop platform designed to provide seamless and effective customs clearance services to Oman’s business community. Significantly, the Authorised Economic Operator programme is one of several initiatives planned by Oman Global Logistics in support of trade facilitation — one of four pillars that underpins the Sultanate’s National Logistics Strategy 2040. The other three pillars are: Markets, Human Capital, and Technology.

Trade facilitation is the main enabler that will build standardisation and harmonisation across all departments and organisation in the clearance, approvals and handling of cargo in the Sultanate, according to OGL.

“The Trade Facilitation Pillar will facilitate the implementation of key instruments such as the Authorised Economic Operator (AEO), Logistics Community System, TIR Convention, Bonded Warehouses, and others.

Moreover, there will be a huge focus on government process re-engineering to achieve the international practices of trade facilitation.

The Trade Facilitation Team will be working closely with the private sector to build partnerships and help to resolve all the issues and overcome any challenges they are facing,” the holding company has stressed.

© Oman Daily Observer 2016