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2016 OAS Guidelines

Section IV: Suspension

Suspension of an AEO status means the loss of validity of an authorization granted for a specified period.

In accordance with Article 23(4)(b) of the UCC, in conjunction with Article 16 of the AD UCC, the customs authority competent to take the decision shall suspend the decision instead of annulling, revoking or modifying it when:

  • "the customs authority considers that there are sufficient grounds for the annulment, revocation or modification of the decision, but does not yet have all the necessary elements to decide on the annulment, revocation or modification;
  • The customs authority considers that the conditions for the decision are not met or that the holder of the decision does not comply with the obligations imposed by that decision, and it is appropriate to give the holder of the decision time to take measures to ensure compliance with the conditions or obligations;
  • The holder of the decision requests suspension because he or she is temporarily unable to comply with the conditions established for the decision or to fulfill the obligations imposed by it.

In the cases referred to in letters b) and c), the holder of the decision shall notify the customs authority competent to take the decision of the measures he will take to ensure compliance with the conditions and obligations, as well as the time required to take them.

During the suspension period, the AEO must not have access to any benefits provided by the statute that could have serious repercussions for him.

Article 30(1) of the AD CAU provides that "where an AEO authorisation is suspended due to non-compliance with any of the criteria set out in Article 39 of the Code, any decision taken in respect of that AEO which is based on the AEO authorisation in general or on any of the specific criteria which led to the suspension of the AEO authorisation shall be suspended by the customs authority which took it".

Article 30(2) of the AD CAU provides that "the suspension of a decision concerning the application of customs legislation adopted with respect to an AEO shall not entail the automatic suspension of the AEO authorisation."

Article 30(3) AD CAU provides that ‘where a decision relating to a person who is both an AEOS and an authorised economic operator for customs simplifications (AEOC) is suspended due to non-compliance with the conditions set out in Article 39(d) of the Code [appropriate level of competence or professional qualifications directly related to the activity carried out], his AEOC authorisation shall be suspended but his AEOS authorisation shall remain valid’.

Where a decision relating to a person who is both an AEOS and an AEOC is suspended due to non-compliance with the conditions set out in Article 39(e) of the Code (adequate levels of safety and security), their AEOS authorisation shall also be suspended; However, your AEOC authorization will remain valid.

Suspension may result from an examination carried out during a monitoring or reassessment process in which serious deficiencies were identified, meaning that the permit holder, from a risk perspective, cannot benefit from the status under the circumstances existing at that time. Non-compliance may also be established as a result of information received from other Member States or other authorities of the Administration, for example, the competent civil aviation authorities.

Before issuing a suspension decision, the competent customs authority must notify the AEO of the findings, the assessments carried out, and the possibility that, based on the assessment, they may lead to suspension of the authorization if the situation is not corrected. The AEO is granted the right to be heard and possibly to remedy the situation. The deadlines for comments and corrections are thirty calendar days from the date of communication (Article 8, paragraph 1, of the AD CAU).

Responses must be carefully evaluated from a risk perspective, and unless the situation can be considered corrected, the status will be suspended for 30 calendar days, with the possibility of an additional 30 days. This decision must be notified to the AEO in writing.

Pursuant to Article 22(6)(c) of the UCC, if the nature or extent of the threat to the safety and security of the population, public health or the environment so requires, the status may be suspended with immediate effect. This option should be used restrictively.

If the request for suspension of the status comes from the authorization holder who is temporarily unable to meet any of the AEO criteria, the holder must notify the reason for the request and, if appropriate, propose an action plan outlining the measures to be taken and the anticipated timeframe. For example, an operator has undertaken optimization or modification of its computer-integrated manufacturing and, for a time, is unable to track goods in the international supply chain. He will request a suspension and propose a timeline for its implementation.

The status may be suspended if the plan of action and the reason for the requested service can be considered reasonable. Otherwise, revocation of the authorization at the request of the holder must be considered as a possibility.

In any case, it should be noted that the distinction between suspension at the initiative of the customs authority and at the initiative of the AEO is very important and is clearly referred to in the legislation (Article 16, paragraph 1 of the AD CAU). Therefore, the AEO cannot deliberately use it solely to postpone the revocation or avoid the three-year period from the date of revocation, which allows for the submission of a new application.

The competent customs authority must assess the effect of the suspension very carefully. The suspension will not affect customs procedures that began before the start date and have not yet been completed.

When the reason for the suspension is fully corrected, the authorization will be restored. If not corrected, the competent customs authority must consider the possibility of revocation.