What is an ​AE O in Malaysia?

An economic operator is a person who, in the course of their business, is involved in activities covered by customs legislation. An authorised economic operator (AEO) is defined as an economic operator who is reliable/compliant in the context of their customs related operations, and therefore, is entitled to enjoy benefits provided in the AEO Programme.

What are the benefits?

2.1         The Authorized Economic Trader :

  • is required to submit electronically minimum data in the form of Permission Request Slip (PRS) for customs clearance;
  • is not subject to physical inspection (except on specific reason) on his cargo i.e customs release via green lane, for import, export and bond-to-bond movement;
  • is required to submit electronically a periodic self-assessment declaration on import/export/movement  known as the Consolidated Statement (CS), based on specified schedules.
  • is allowed deferred duty payments via electronic Fund Transfer (EFT) done periodically with the CS;
  • is allowed to use the Consolidated Statement (CS) to apply for the Certificate of Origin (Form D) from the Ministry of International Trade and Industries;
  • is entitled to the benefits offered by international customs administrations under Mutual Recognition Arrangements (MRA) with RMCD.

2.2         Licensed Manufacturer Warehouses certified as AEOs are not required to submit the Monthly Statement on Movement of Raw Materials (M1) and Statement of Finished Product (M2);

Why apply for AEO?

It is a commercial decision that you need to make once you have assessed the benefits for your company against the requirement of maintaining the AEO standards

Who can apply?

Eligible Companies are:

4.1         Companies  involved in importation, exportation and movement of goods;

4.2         Companies which have been in operation in Malaysia for at least three years;

4.3         Companies which have fullfilled the security requirements based on WCO SAFE Framework of Standards;

4.4         Companies which have put in place security that addresses the following areas:

4.4.1       Security of supplies;

4.4.2       Security of business;

4.4.3       Security of premise and physical accessibilty;

4.4.4       Security of personnel;

4.4.5       Security of customs agents acting for the company;

4.4.6       Security of business partner;

4.4.7       Security of cargo;

4.4.8       Security of transport and conveyance;

4.4.9       Security of information and ICT;

4.4.10    Security of warehouse/storage;

4.4.11    Management of accidents, disasters and investigations;

4.4.12    Management of crisis and recovery.

Non-eligible companies are:

4.5         Companies handle goods in the following categories are not eligible under AEO Programme:

4.5.1     Critical goods such as motor vehicles, alcoholic beverages, cigarettes, petroleum/petroleum products and mobile phones;

4.5.2     Goods which are under total prohibition or precursor chemicals which can be used in the manufacture of drugs or materials for weapons of mass destructions (WMD);

4.5.3     Any other category of goods as determined by the AEO Panel, at any given time and situation.

How to apply?

5.1         Company is required to submit the following documents:-

i.       Official letter of application,

ii.      AEO Application Form (as in Attachment 1)

iii.     Company’s Profile,

iv.     Copy of Company Registration Certificate,

v.      Copy of Form 24 and Form 49,

vi.     Completed Self-Assessment Compliance Checklist (as in  Attachment 2),

vii.    List of personnel who will deal with Customs and list of forwarding agents given the authority to represent the company,

viii.   Copy of certificates and recognitions received, such as ISO certificate, C-TPAT (if any),

ix.     Copy of licenses and facilities received (if any),

x.      Copy of the latest Financial Statements, audited by a certified auditor,

xi.     List of raw materials and finished products and their HS Codes,

xii.    A letter stating agreement to comply with the conditions under AEO Scheme.

5.2         Only one copy of the application with the documents mentioned in 5.1 is to be sent to the AEO Secretariat at the following address:

AEO Se​cretariat
Trade Facilitation and Industries Sub-Division
Customs D​ivision, Level 4 North
Finance Ministry Complex
No. 3, Pesiaran Perdanarecinct 2
Federal Government Administrative Centre