The World Customs Organization (WCO) is taking concrete steps to enhance trade facilitation in Togo, helping businesses experience tangible benefits from improved customs efficiency. This initiative represents a significant opportunity for Togo to gain competitive advantages in international trade.
In alignment with the Trade and Logistics Services Competitiveness Project (PACSLC), the World Trade Organization's (WTO) Trade Facilitation Agreement (Article 7.7), and the WCO's SAFE Framework of Standards, the WCO has provided technical support to Togo's Revenue Authority (TRA) to establish an Authorized Economic Operator (AEO) program. The initiative was launched through a World Bank-funded workshop held in Lomé from March 28 to April 1, 2022, conducted by WCO experts.
The AEO Program: A Strategic Move for Togo's Trade Competitiveness
The Authorized Economic Operator (AEO) system forms a core component of the WCO's SAFE Framework, establishing partnerships between customs authorities and businesses that meet international security standards. Certified companies receive trade facilitation benefits, creating a balance between supply chain security and commercial efficiency. For Togo, implementing an AEO program represents both compliance with international commitments and a strategic move to enhance its trade competitiveness.
Workshop Highlights: Building Comprehensive AEO Expertise
The five-day workshop equipped TRA officials with comprehensive knowledge about AEO implementation through several key components:
- Understanding the SAFE Framework: Participants gained in-depth knowledge of the SAFE Framework's core principles and objectives, establishing the theoretical foundation for AEO implementation.
- Clarifying AEO Concepts: The training precisely defined the AEO concept within the SAFE Framework, distinguishing it from similar programs like the Revised Kyoto Convention's authorized persons or the TFA's authorized operators.
- Implementation Processes: Officials learned detailed procedures for AEO application, review, certification, and ongoing monitoring, including verification methodologies.
- Audit Skills Development: The program focused on enhancing AEO audit capabilities, covering application processes, self-assessment questionnaires, on-site inspections, and follow-up verification procedures.
Togo's Existing Compliance Program: The Privileged Partnership Framework
Since 2016, Togo's Revenue Authority has operated the Privileged Partnership Framework (PPF), a customs compliance initiative currently involving six authorized companies. This program has provided valuable experience in public-private partnerships for customs compliance, serving as a foundation for the new AEO program.
Bridging the Gap: From Analysis to Action
The workshop conducted a comparative analysis between the PPF and AEO programs, identifying gaps that need addressing for successful AEO implementation. This analysis informed the development of a concrete action plan with defined stages, objectives, and timelines to ensure program success.
To reinforce practical skills, participants conducted a field visit to a PPF-authorized company, observing real-world audit techniques, particularly those related to international supply chain security.
The Economic Impact: Quantifying Potential Benefits
Analysts project several significant economic benefits from Togo's AEO implementation:
- Customs Efficiency: Estimated 20% reduction in clearance times could accelerate business operations and improve cash flow.
- Cost Reduction: Projected 10% decrease in trade-related expenses, including customs fees, storage, and transportation costs.
- Foreign Investment: Potential 5% increase in foreign direct investment through enhanced supply chain security.
- Trade Growth: Estimated 8% expansion in trade volume, boosting export revenues and global competitiveness.
Implementation Recommendations
To maximize the AEO program's potential, experts recommend:
- Launching awareness campaigns to increase business participation
- Streamlining application procedures to lower participation barriers
- Enhancing customs officials' audit capabilities through continued training
- Pursuing mutual recognition agreements with other jurisdictions
With proper implementation, Togo's AEO program could significantly advance trade facilitation, stimulate economic growth, and strengthen the country's position in global trade networks.