INFLUENCE OF AUTHORIZED ECONOMIC OPERATORS ON SUPPLY CHAIN SECURITY

Supply chain security and logistics management in private and public sectors is dependent on accurate,comprehensive data from trusted, compliant companies. Among all involved in supply chain and logistics Customs plays an important role in the fight against cross-border crime and terrorism. Customs expertise in controlling goods, backed up by the use of modern IT systems with e-Customs tools, and an efficient risk assessment and border control management, is vital to detect illegal goods such as drugs, explosive materials,nuclear and chemical weapons.One of the most important components of European Union’s Community Customs Code is status of Authorized Economic Operator (AEO). Its aim is to grant economic operators the status of a low-risk, more trusted actor under certain circumstances when it comes to actions with customs authorities within the EU. At the moment there are three types of AEO status that companies can be certified for.Since Croatia joined EU in 2013, Customs has started to apply concept of Authorized Economic Operator system. This process and status is relatively new and there are not many companies that have started process of receiving status of AEO that will give those companies benefits in customs procedures in EU and whole world. Therefore this paper will give more information about AEO status and what Croatian companies need for getting this status and how it can benefit supply chain security.