Dash Global freight achieved AEO Level 2 status in 2024 undertaking the SARS audit to provide our partners and clients with a competitive edge in these challenging times.

What is the AEO programme?
The AEO programme is a flagship Customs-Private Business partnership. It aims to increase voluntary compliance with global trade standards through the provision of incentives. In a nutshell, South African customs share some of its security and compliance duties with the trusted business partner in the private sector; this partner is then rewarded with various benefits that are aimed at facilitating trade.
Please note that an importer that does not meet the above requirements may require special permission through ITAC permits for the importation of their personal or household effects. Customs inspects all items described as personal effects or Household effects which can cause clearance delays.

Who can become an AEO?
Any company that engages in cross-border trade can apply for AEO status. This would include the following entities: manufacturers, exporters, importers, brokers, intermediaries, carriers, consolidators, airports, ports, terminal operators, integrated operators, warehouses, distributors, and freight forwarders. The entity must, however, also be approved by the South African Revenue Service (SARS) as complying with international best practice trade and supply chain security standards.

What criteria must be met by a potential AEO?
SARS introduced 2 levels of accreditation: Level 1 Compliance, and Level 2 Safety and Security. Specific criteria to be fulfilled by the applicant, as well as the specific benefits received, are assigned to each level. Companies must satisfy the detailed criteria in the following domains to qualify for AEO status.
Level 1 Compliance:

• Compliance with Customs and Excise Act 1964 (e.g. 3 years record of compliance with the Act)
• Computer, accounting, and logistical systems (e.g. full audit trail; internal controls for detecting irregularities; verifiable backup procedures)
• Adequate knowledge of customs and excise laws and procedures (i.e. will need to have an Accreditation Competency Assessment Certificate issued)
• Evidence of sufficient financial resources (e.g. 3 years of audited records)
• Tax compliance (e.g. no outstanding tax returns, penalties, or interest payable to SARS)

Level 2 Safety and Security:
In addition to the above, Level 2 applicants are further required to satisfy criteria under the following Safety and Security domains:

• Building premises security (e.g. security sensitive areas are protected from unauthorised entry)
• Personnel security (e.g. personnel identification measures; security screening of prospective employees)
• Business partner security (e.g. clearly identified business partners)
• Cargo and conveyance security (e.g. ensure goods are untouched and kept intact)
• Crisis management and incident recovery (e.g. contingencies in place particularly to deal with loss of company records or other relevant information)
• Consultation, co-operation, and communication (e.g. liaison officer on company staff)
• Security education, training, and threat awareness (e.g. regularly reviewed procedures for managing global supply chain risks)
• IT security (e.g. systems to prevent hacking)
• Corporate governance – corporate governance affairs based on principles contained in the latest King report (currently King IV – https://www.iodsa.co.za/page/king-iv )

The relevant legislation pertaining to the AEO programme can be found below

• Customs and Excise Act, 1964; Amendment of Rules, 2021
• Customs and Excise Act, 1964; Amendment of Rules, 2022