International trust and corporate services provider Equiom has been approved as an Authorised Economic Operator (AEO) for customs simplification.

Recognised globally as a quality mark demonstrating the efficiency and compliance of a company’s role in customs, AEO status is granted to eligible businesses established in the EU which are actively involved in customs operations. Eligibility is dependent on demonstrating excellent tax and customs compliance history, good commercial record-keeping standards, financial solvency, professional qualifications, practical experience and competence.

Equiom VAT Director Steve Cain commented: ‘We are proud to be leading the way as the first corporate services provider in the Isle of Man to gain AEO status from HMRC. This recognition reinforces our high levels of competence and exemplary compliance standards and will be of huge benefit to our yachting and aviation clients.

‘From 1 May 2016 guarantees could be upwards of 18% of an asset’s value, potentially running into millions of dollars. AEOs do not have to provide bank guarantees or security against any VAT potentially due on importing goods. Fast-tracking of the importation paperwork and procedures is enabled and it also means Equiom has a lower risk score, resulting in fewer customs checks. The benefits can also apply to non-EU owners or owning entities wishing to import their goods - such as yachts or aircraft into Europe.’

Governed by European Community Law, AEO status was created under the Union Customs Code, introduced on 1 May 2016. As a result, a company must now meet specific criteria with regard to their customs’ operations relating to goods imported into or exported out of the EU. The EU AEO database allows anyone to check who holds an AEO status, what type it is, and the date and country of issue.

Photo - Steve Cain, VAT Director, Equiom