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AEO Participation Could Help Reduce Non-Tariff Friction for Irish Companies After Brexit, KPMG Says

Participation within the European Union's Authorized Economic Operator program could be one way to reduce barriers for trade between Ireland and the United Kingdom following Brexit, KPMG said on its website. "As the Brexit process continues, Irish businesses need to prepare for the changes in trading into and out of the UK once the UK finally leaves the EU," said Glenn Reynolds, a partner with KPMG in Ireland. "If the UK leaves the EU Single Market and Customs Union with no other arrangements in place, all trade between Ireland and the UK will require full customs clearance and tariffs would be imposed on Irish exports to the UK and imports from the UK into Ireland."

Many of the benefits would still apply if a trade deal is struck with the UK, he said. "Even with a free trade agreement customs clearance requirements will be a feature of the new trading arrangement with the UK and tariffs may still apply to certain classes of good, Reynolds" said. "This could quickly become costly not only in terms of tariffs (i.e. duty) but also in terms of non-tariff costs (e.g. administration and logistics and delays in clearing goods at customs frontiers)."

Membership as an AEO trusted trader is meant to allow for fast customs processing for participants that "demonstrate consistent quality, compliance and trustworthiness in their supply chain to Customs authorities," Reynolds said. While AEO members don't see reductions in customs duties, the program "can significantly help mitigate non-tariff costs associated with international trade in particular simplifying the importation and exportation process and bringing faster and more efficient clearance of goods at Customs frontiers."