Skip to main content
2016 OAS Guidelines

2.III.1. General provisions

As indicated in Article 39(c) of the UCC, the AEO must demonstrate its financial solvency, which will be considered proven when the applicant has a good financial level that allows it to meet its commitments, taking due account of the characteristics of the type of activity in question. Article 26 of the CAU, which more precisely describes the expectations of the AAE in relation to the criterion set out in Article 39(c) of the CAU, must be understood in this sense.
To verify whether the applicant meets the criteria set out in Article 26 of the CAU, the customs authorities will take into account the following:

  1. the applicant is not involved in bankruptcy proceedings;
  2. During the last three years prior to the submission of the application, the applicant has fulfilled its financial obligations in relation to the payment of customs duties and all other duties, taxes or charges levied on or in connection with the import or export of goods;
  3. The applicant demonstrates on the basis of records and information available for the three years preceding the submission of the application that it has sufficient financial capacity to meet its obligations and honour its commitments relating to the nature and volume of its business activities, in particular that it does not have negative net assets, unless they can be covered.

If the applicant has been established for less than three years, their financial solvency will be assessed based on available records and information.

It should be noted that the term "insolvency" within the meaning of this section of the Guidelines should not be considered synonymous with "bankruptcy", which means the inability or impairment of the capacity of a company, legally declared, usually by a court, to pay its creditors. With regard to this criterion, greater emphasis is placed on the technical meaning of insolvency and the potential risk that, due to its economic and financial situation, an economic operator may be unable to meet its debts. In this context, any indication of the economic operator's inability or potential future inability to meet its financial obligations must be carefully considered and assessed.