DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, has obtained an Authorized Economic Operator (AEO) certification by Indonesia’s customs authority, The Directorate General of Customs and Excise. The AEO certification will allow DHL Global Forwarding Indonesia to provide secure and quality logistics services while offering cost savings that can help customers become more globally competitive.
The AEO accreditation is a cornerstone of the World Customs Organization’s (WCO) SAFE Framework of Standards to Secure and Facilitate Global Trade, and to date, fewer than 70 companies in Indonesia have been recognized with the certification. The country’s adoption of the AEO program as part of its ongoing Customs and Excise Reform will give trusted companies like DHL Global Forwarding a number of added benefits, including fewer physical consignment checks and preferential treatment in terms of customs regulations. Under the AEO principle of Mutual Recognition, DHL Global Forwarding will now also benefit from being part of a global supply chain that connects AEO-certified organizations, further decreasing shipment time.
Thomas Tieber, CEO for ASEAN and South Asia, DHL Global Forwarding, said: “Global trade continues to grow positively, and this raises important security concerns for customs authorities around the world. However, stricter security and safety measures alone risk increasing the complexity of cross-border movement of goods and adding transaction costs to the overall supply chain process, potentially impacting the ability of all participants to remain globally competitive.”
With the AEO, the Indonesian Directorate General of Customs and Excise has helped to ease processing at ports, reduce logistics cost and promote greater ease of business in Indonesia. The Indonesian Directorate General of Customs and Excise also plan to increase the number of AEO-certified companies in Indonesia so as to amplify end-to-end trade synergies and provide a safe and secure trading environment in the country.
The program shares the same methodology as ISO in terms of implementation, execution, risk assessment and management engagement. To obtain AEO certification in Indonesia, DHL Global Forwarding set up a dedicated AEO team to ensure the business met or exceeded rigorous logistics and customs-related criteria, and high accounting and security standards, as well as proved financial solvency, among other requirements.
Vincent Yong, Managing Director, DHL Global Forwarding Indonesia, said, “Achieving AEO status in Indonesia not only confirms our commitment to high safety and supply chain security standards in global trade, but also serves as a strong argument for our customers when choosing a logistics partner. The certification will enable us to offer an even more efficient service and deliver better value for our customers.”
World Customs Organization (WCO) launched the SAFE program globally post 9-11 incident in New York to encourage customs authorities and certified businesses such as logistics providers, exporters and shippers, to be jointly responsible for safe and secure cross-border transactions and keep world trade flowing swiftly. WCO is an independent intergovernmental body whose mission is to enhance the effectiveness and efficiency of customs administrations. There are 182 WCO members, which together process about 98 per cent of world trade.