TNT, Europe’s largest express service company, has applied for Authorised Economic Operator (AEO) status for all its customs-related express services operations in the 27 European Union countries, the company said in a media statement.
TNT’s main office is in Amsterdam, the Netherlands. The firm is the first of the four largest express integrators to apply for the AEO standard.
As of January 30, TNT also started electronic invoicing.
AEO is a new rate of the European Commission (EC). It will increase the quality of customer service in several ways: TNT will receive priority treatment at European customs when agents inspect shipments; faster goods movement through third country borders where AEO status is recognised; and reduced data sets for entry and exit summary declarations. The company said that TNT and its clients would benefit from fewer delayed shipments, reduced theft or vandalism, and improved communication between supply chain partners.
The EU AEO programme came into effect on January 1 2008. It is set to improve border control with the aim of securing the international supply chain and modernise customs procedures within the EU. AEO status will recognise safe, secure and customs compliant business partners in international trade. National customs authorities will process applications and carry out the physical evaluation.
“The AEO standard is to express carriers what the green ‘Nothing to declare’ line is to individual passengers: a fast-moving and formality-light solution,” said Martin Palmer, director global customs of TNT Express division. “Officials may inspect your luggage, but normally they won’t. AEO stands for safety and trustworthiness,” he said.
The company said that TNT’s flagship air hub in Liege was in the process of submitting an application in a pilot with the Belgian customs authorities. TNT will soon apply for the AEO status with the Netherlands, Germany, Ireland and the Czech Republic. Other EU member countries will follow by the middle of 2008.
TNT hopes to receive the AEO standard as according to the company, its application satisfies the main criteria: a compliance record with customs requirements; a satisfactory system of managing commercial and transport records allowing customs controls; proven financial solvency; high security and safety standards. The firm said that, “though not mandatory”, it would provide customs authorities with a comprehensive self-assessment on top of the required form, enabling them to process the application within 90 days from date of receipt, instead of 300. TNT expects a full accreditation by the middle of 2009.
All TNT’s express operations are already certified to five standards: investors in people, ISO 9001 (for operational excellence), ISO 14001 (for environmental management), OHSAS 18001 (for work place safety) and SA 8000 (for social responsibility).
The EU introduced the AEO programme in 2005 with the Security Amendment of the Customs Code (Regulation No 648/2005). AEO status is applicable to all EU-established economic operators, directly involved in importing/exporting, meaning among others, manufacturers, exporters, importers, warehouse keepers, clearance agents and carriers.
On January 30 TNT said that it had become the first transport company in Bulgaria to provide electronic invoicing. According to TNT, the new system saves time and money.
Digital invoices are sent to an e-mail address indicated by the client, within several hours after being issued. The aim is the new system gradually to replace the paper original. This would not only save time and money, but also would help saving forests, decreasing the carbon dioxide emissions into the air and improving environmental protection, the company said.
An electronic invoice costs only 0.30 leva, which is more than 10 times less than the price of a paper invoice, which reaches 3.50 leva together with the costs on blank, printing, envelope, sorting, addressing and delivery, TNT said.
According to the company, another significance of an electronic invoice is the exceptionally short term for issuing and sending it to the client. The clients receive paper invoices in one to four working days. This time would be reduced to a few hours and the service will be executed throughout the country.
“The total investments in the project are more than 100 000 leva. This would completely be returned after four months, according to our calculation,” TNT Bulgaria manager Ivan Vassilev said. “We expect not only an economical effect from electronic invoicing. Through this project, we also achieve a cultural revolution in TNT, as well as in the companies, using our services,” he said.
