For businesses seeking to streamline international trade operations, reduce customs clearance times, and cut operational costs, becoming an Authorized Economic Operator (AEO) could be the golden key. But how can companies successfully obtain this certification and maximize its benefits? Bolivia’s customs authority is actively exploring this path, drawing valuable lessons from the experiences of Colombia, Mexico, and Uruguay.
AEO: The Global Trade "Passport"
The AEO program, championed by the World Customs Organization (WCO), is a critical initiative designed to foster secure, reliable, and efficient international trade supply chains through collaboration between customs authorities and businesses. Companies with AEO certification typically enjoy faster clearance times, reduced inspection rates, and priority processing—advantages that significantly lower trade costs and enhance competitiveness. For customs agencies, the AEO system allows for more focused risk management, improving overall regulatory efficiency.
Regional Insights: Lessons From Colombia, Mexico, and Uruguay
On November 19, 2021, under the framework of the Swiss State Secretariat for Economic Affairs (SECO)-WCO Global Trade Facilitation Programme (GTFP) and supported by the WCO Mercator Programme, Bolivia’s National Customs hosted a virtual dialogue on AEO implementation. The event aimed to provide Bolivian officials with direct insights from AEO experts in Colombia, Mexico, and Uruguay, helping to advance Bolivia’s own AEO initiatives.
- Colombia: A Methodical Approach – Colombian customs prioritized building a robust risk assessment system early in their AEO program’s development. They tailored certification standards to different industries and business sizes while emphasizing stakeholder engagement through training and technical support. Colombia also actively pursued AEO mutual recognition agreements with other nations to boost the global competitiveness of its certified businesses.
- Mexico: Technology-Driven Efficiency – Mexico leveraged digital tools to create a comprehensive AEO management system, enabling online applications, evaluations, and monitoring. Data analytics further enhanced risk detection, allowing for proactive measures.
- Uruguay: Pragmatic and Results-Oriented – With a smaller-scale program, Uruguay focused on simplicity and tangible outcomes. Clear certification standards and streamlined processes were paired with close collaboration between customs and businesses to ensure real-world benefits.
Bolivia’s Path Forward: Opportunities and Challenges
The dialogue highlighted actionable strategies for Bolivia, such as adopting Colombia’s risk assessment models, Mexico’s digital solutions, and Uruguay’s practical certification frameworks. However, challenges remain, including low business awareness of AEO benefits, internal coordination gaps within customs, and a shortage of specialized personnel.
As part of the GTFP, the WCO will continue providing technical assistance to strengthen Bolivia’s AEO program, established in 2014, and expand its network of trusted traders. This includes expert guidance, training, and best-practice sharing.
Moving forward, Bolivia must prioritize:
- Public awareness campaigns to increase business participation
- Simplified certification processes to reduce barriers
- Technical support for applicants
- Enhanced risk management systems
- International mutual recognition agreements
- Customs workforce training
The AEO system represents a growing trend in global trade facilitation. For Bolivia, advancing its program promises not only improved trade efficiency but also stronger economic competitiveness. While progress may require sustained effort, Bolivia’s commitment to learning from regional peers positions it well for long-term success.