1.An economic operator who is established in the customs territory of the Union and who meets the criteria set out in Article 39 may apply for the status of authorised economic operator.
The customs authorities shall, following consultation with other competent authorities if necessary, grant that status, which shall be subject to monitoring.
2.The status of authorised economic operator shall consist in the following F1... [F2authorisation]:
F3(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)that of an authorised economic operator for security and safety that shall entitle the holder to facilitations relating to security and safety.
F43.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F44.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F45.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.The authorised economic operator referred to in paragraph 2 shall enjoy more favourable treatment than other economic operators in respect of customs controls F5..., including fewer physical and document-based controls.
7.The customs authorities shall grant benefits resulting from the status of authorised economic operator to persons established in countries or territories outside the customs territory of the Union, who fulfil conditions and comply with obligations defined by the relevant legislation of those countries or territories, insofar as those conditions and obligations are recognised by the [F6United Kingdom] as equivalent to those imposed to authorised economic operators established in the customs territory of the Union. Such a granting of benefits shall be based on the principle of reciprocity unless otherwise decided by the [F6United Kingdom], and shall be supported by an international agreement F7....
Textual Amendments
F1Words in Art. 38(2) omitted (31.12.2020) by virtue of The Customs Safety and Security Procedures (EU Exit) Regulations 2019 (S.I. 2019/715), regs. 1(2), 2(3)(c)(i) (as amended by S.I. 2020/1624, regs. 1(2), 9); 2020 c. 1, Sch. 5 para. 1(1)
F2Word in Art. 38(2) substituted (31.12.2020) by The Customs Safety and Security Procedures (EU Exit) Regulations 2019 (S.I. 2019/715), regs. 1(2), 2(3)(c)(ii) (as amended by S.I. 2020/1624, regs. 1(2), 9); 2020 c. 1, Sch. 5 para. 1(1)
F3Art. 38(2)(a) revoked (31.12.2020) by The Customs Safety and Security Procedures (EU Exit) Regulations 2019 (S.I. 2019/715), regs. 1(2), 2(2) (as amended by S.I. 2020/1624, regs. 1(2), 9); 2020 c. 1, Sch. 5 para. 1(1)
F4Art. 38(3)-(5) revoked (31.12.2020) by The Customs Safety and Security Procedures (EU Exit) Regulations 2019 (S.I. 2019/715), regs. 1(2), 2(2) (as amended by S.I. 2020/1624, regs. 1(2), 9); 2020 c. 1, Sch. 5 para. 1(1)
F5Words in Art. 38(6) omitted (31.12.2020) by virtue of The Customs Safety and Security Procedures (EU Exit) Regulations 2019 (S.I. 2019/715), regs. 1(2), 2(3)(c)(iii) (as amended by S.I. 2020/1624, regs. 1(2), 9); 2020 c. 1, Sch. 5 para. 1(1)
F6Words in Art. 38(7) substituted (31.12.2020) by The Customs Safety and Security Procedures (EU Exit) Regulations 2019 (S.I. 2019/715), regs. 1(2), 2(3)(c)(iv) (as amended by S.I. 2020/1624, regs. 1(2), 9); 2020 c. 1, Sch. 5 para. 1(1)
F7Words in Art. 38(7) omitted (31.12.2020) by virtue of The Customs Safety and Security Procedures (EU Exit) Regulations 2019 (S.I. 2019/715), regs. 1(2), 2(3)(c)(v) (as amended by S.I. 2020/1624, regs. 1(2), 9); 2020 c. 1, Sch. 5 para. 1(1)
The criteria for the granting of the status of authorised economic operator shall be the following:
the absence of any serious infringement or repeated infringements of customs legislation and taxation rules, including no record of serious criminal offences relating to the economic activity of the applicant;
the demonstration by the applicant of a high level of control of his or her operations and of the flow of goods, by means of a system of managing commercial and, where appropriate, transport records, which allows appropriate customs controls;
financial solvency, which shall be deemed to be proven where the applicant has good financial standing, which enables him or her to fulfil his or her commitments, with due regard to the characteristics of the type of business activity concerned;
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and
with regard to the authorisation referred to in point (b) of Article 38(2), appropriate security and safety standards, which shall be considered as fulfilled where the applicant demonstrates that he or she maintains appropriate measures to ensure the security and safety of the international supply chain including in the areas of physical integrity and access controls, logistical processes and handling of specific types of goods, personnel and identification of his or her business partners.
Textual Amendments
F8Art. 39(d) revoked (31.12.2020) by The Customs Safety and Security Procedures (EU Exit) Regulations 2019 (S.I. 2019/715), regs. 1(2), 2(2) (as amended by S.I. 2020/1624, regs. 1(2), 9); 2020 c. 1, Sch. 5 para. 1(1)
The Commission shall be empowered to adopt delegated acts, in accordance with Article 284, in order to determine the following:
the simplifications referred to in point (a) of Article 38(2);
the facilitations referred to in point (b) of Article 38(2);
the more favourable treatment referred to in Article 38(6).
The Commission shall adopt, by means of implementing acts, the modalities for the application of the criteria referred to in Article 39.
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 285(4).