Imagine if import-export businesses could obtain a "certificate of trust" from customs authorities, significantly improving clearance efficiency while enhancing supply chain security. What kind of economic vitality could this bring? The Togolese Revenue Authority (TRA) is moving toward this goal. With support from the World Customs Organization (WCO), TRA is actively developing its Authorized Economic Operator (AEO) program to enhance trade facilitation and align with international standards.
Background: The Importance of Trade Facilitation and AEO Programs
In today's increasingly globalized trade environment, trade facilitation has become crucial for national competitiveness. Both the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA) and the WCO's SAFE Framework of Standards emphasize the central role of AEO programs in promoting trade security and efficiency. These programs certify businesses that meet specific criteria (such as compliance, financial stability, and security measures), granting them customs clearance advantages that reduce trade costs and improve efficiency.
WCO Technical Support: Advancing Togo's AEO Program
Under the World Bank-funded Trade and Logistics Services Competitiveness Project (PACSLC), the WCO has provided critical technical assistance to help TRA establish an AEO program compliant with both the SAFE Framework and Article 7.7 of the WTO TFA. From March 28 to April 1, 2022, WCO experts conducted a comprehensive training workshop in Lomé for Togolese customs officials.
The Commissioner of Customs and Indirect Taxes expressed gratitude for WCO's support during the workshop's opening ceremony, emphasizing the importance of AEO audit training. Key workshop topics included:
- SAFE Framework awareness: Deepening understanding of the SAFE Framework and its software package to establish the AEO program's foundation.
- AEO concept clarification: Learning the SAFE Framework-aligned AEO concept and clarifying the program's core principles and objectives.
- Compliance program differentiation: Distinguishing WCO's AEO concept from other compliance programs to prevent conceptual confusion.
- AEO implementation and validation: Mastering AEO program implementation processes and validation procedures to ensure effectiveness.
- AEO audit skills development: Enhancing technical proficiency in AEO audits, including application review, self-assessment questionnaires, and post-validation evaluation.
Togo's Existing Compliance Program: Privileged Partnership Framework (PPF)
TRA currently operates a compliance initiative called the Privileged Partnership Framework (PPF), implemented since 2016 with six certified companies. To better align PPF with international AEO standards, the workshop included comparative analysis to identify gaps and guide future AEO implementation.
Field Visit: Practical AEO Audit Training
Participants conducted a field visit to a PPF-certified company to practice international supply chain security audit techniques, bridging theoretical knowledge with practical application.
Action Plan: Building an Internationally Compliant AEO Program
The workshop produced an action plan guiding TRA's next steps:
- Establishing AEO certification standards
- Developing transparent certification processes
- Enhancing customs officials' audit training
- Strengthening international cooperation for mutual recognition
- Encouraging broader business participation
AEO Benefits: Multidimensional Positive Impacts
Successful AEO implementation promises significant benefits:
- Enhanced trade facilitation through faster clearance
- Improved supply chain security
- Increased international competitiveness
- Economic growth stimulation
Challenges and Outlook
Implementation challenges include:
- Compliance costs for small businesses
- Customs capacity building requirements
- International mutual recognition needs
Looking ahead, TRA must address these challenges to fully realize AEO's potential in transforming Togo into a regional trade hub.
Global AEO Trends
Worldwide AEO developments show:
- Expanding program coverage beyond traditional traders
- Increasingly stringent certification standards
- Growing mutual recognition agreements
- Emerging technology applications (blockchain, AI)
Conclusion
TRA's WCO-supported AEO initiative represents a significant step toward trade modernization. Through sustained government-business-customs collaboration and international support, Togo's AEO program can become a catalyst for regional economic transformation.