Key things about OEA Certification in Mexico
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In these times of globalisation, as trade between all corners of the world continues to expand, security and efficiency of supply chains have become a priority for both governments and businesses alike. Authorised Economic Operator(AEO) certification is one of the notable programs put in place to promote this. This certification is known in Mexico as OEA(Operador Económico Autorizado) certification. It has an important role in promoting safe, secure, and efficient trade while at the same time increasing trust and improving the relationship between customs authorities and the private sector.
Advantages of Obtaining OEA Certification
Obtaining OEA Mexico certification holds many benefits for any business that is or wants to be involved with importing and exporting any type of goods across international borders, which is why most businesses do their best to obtain it, although it’s completely voluntary.
Having this certification ensures the Customs authorities that the holder is a safe and reliable business, which in turn results in streamlined cross-country shipping process, with less controls, as it is deemed that there’s a low risk of a threat crossing the border with the certified company’s shipment.
Obtaining OAE certification is just the first step, as the certification will be audited annually to ensure that the business is still compliant prior to renewing the certification, so continuous work must be put in to maintain the prescribed standards.
Global Initiative
World Customs Organization(WCO), under the SAFE Framework of Standards, put in a global initiative designed specifically to improve the security and facilitation of global trade.
The idea is to boost trust and foster collaboration between customs administrations and companies operating in the international supply chain.
Any business that is interested in international trade can obtain it on a voluntary basis as long as they fulfill security, compliance, and operational standards, thus reducing the risks associated with smuggling, fraud, or any other illegal activities, and improving the efficiency of customs processes. This includes importers, exporters, customs brokers, transportation companies, and logistics providers.
With the rise in importance of these certifications in the context of global trade partnerships, many countries have started implementing mutual recognition agreements(MRAs) which allow companies certified in one country to receive similar, if not identical, benefits when trading with other countries that have AOE put in place.
For Mexican companies, this is mostly utilized when trading with key partners like the United States, Canada, and the European Union, where all sides benefit from reduced delays, lower costs, and an overall increase in trust
Obtaining an OAE Certification
The process of obtaining OAE certification is a rigorous one, with strict criteria on security, compliance regulations, and risk management. Businesses are to undergo a very detailed evaluation by SAT(Servicio de Administración Tributaria), Mexico’s tax and customs authority. If all standards are met, the business will be certified for a year, after which the certification can be renewed pending a detailed audit.
Here is a brief look at the key steps involved in the OEA certification process in Mexico:
Initial Assessment and Preparation
Before applying for the certification, businesses should perform an assessment and an extensive internal audit to ensure compliance with the strict rules. Many businesses choose to hire consultants and shelter service providers to guide them through this part.
Submitting the Application
Once the company has completed its internal checks and is sure everything is ready, it can submit its application to SAT. This consists of a written letter of request that includes the company’s complete name and customs broker license number, and other details like the main activity of the company, transportation companies with which the company will work, and sometimes also their PROSEC and IMMEX registration numbers.
Audit and Verification
Upon receiving and reviewing the application, SAT will perform a rigorous audit of the company’s facilities and operations, This can include inspections of warehouses, production facilities, transportation routes, and a detailed check of all documentation and operating procedures.
Certification Approval
If the company has passed the audit, SAT will grant OAE certification for a specific period, after which another audit will be held in order to successfully re-certify the business. Additionally, “surprise” audits and reviews may be done at any point during the period the business is certified for, so maintaining compliance is the key.
Conclusion
Authorised Economic Operator(AEO), known in Mexico as Operador Económico Autorizado(OEA), is a certification that demonstrates to Customs authorities and other businesses that the company is a safe and reliable trade partner.
Any and all businesses that are involved in international trade can apply for this certification on a voluntary basis after which a detailed audit of the company’s facilities, records, and operations will be held. Provided that the strict criteria are fulfilled, the business will become OEA Mexico certified which will streamline their international trade, with fewer and expedited customs checks, and an overall increased trust between all participants.
