Robert Troy (Longford-Westmeath, Fianna Fail)
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114. To ask the Minister for Finance the number of registered hauliers that meet criteria as AEOs; and the measures and supports that have been put in place to increase the number in preparation for Brexit. [17509/18]

Lisa Chambers (Mayo, Fianna Fail)
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115. To ask the Minister for Finance the preparations that have been made in the event that there is no agreement reached on Brexit and the authorised economic operator, AEO, and other authorisations for customs simplifications issued by the customs authorities of the United Kingdom are no longer valid in the customs territory of the European Union; and if he will make a statement on the matter. [17393/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 114 and 115 together.

The concept of EU Authorised Economic Operator (AEO) has existed since 2008, and the legal basis for same is now reflected in the Union Customs Code (UCC) with its implementing and delegated Acts.

The AEO programme, which aims to enhance international supply chain security and to facilitate legitimate trade, is open to all supply chain actors. An AEO is an economic operator who is deemed reliable in the context of his or her customs related operations. There is no legal obligation for economic operators to become an AEO, it is a matter of choice for each operator based on their specific situation.

Under the UCC the status of AEO consists of different types of authorisations: AEO for Customs Simplifications (AEOC) and AEO for Security and Safety (AEOS). An economic operator can apply for both. The criteria for approval as an AEO are as follows:

- Record of compliance with customs legislation and taxation rules, including no record of serious criminal offences relating to the economic activity of the applicant;

- Demonstration of a high level of control of its operations by the applicant and of the flow of the goods, by means of a system of managing commercial and, where appropriate, transport records, which allows appropriate customs controls;

- Proven financial solvency.

And depending on the type of AEO:

- Practical standards of competence or professional qualifications directly related to the activity carried out (AEOC);

- Appropriate security and safety standards (AEOS).

Applications are assessed on a case by case basis. There is no fee for application, nor is there any required size or scale of business.

I am advised by Revenue that Authorised Economic Operator (AEO) status, and customs authorisations for simplifications, are normally granted by the customs authority of the Member State in which the trader is established and are automatically recognised in all Member States. While AEO status allows a holder to apply for simplifications in another Member State, the status is of most benefit in connection with the customs procedures of the country of residence of the AEO, significantly simplifying the process of import and export. Thus some 89% of third country imports to Ireland are carried out by the 146 AEOs resident in Ireland and authorised by Revenue. Many of these AEOs are customs agents or carriers who take responsibility for import formalities on behalf of traders located in Ireland or abroad.

It is not possible to say in absence of an application how many registered hauliers would meet the criteria for authorisation as AEO. Of the 146 economic operators currently holding AEO status in Ireland, some 65 are in the business of freight forwarding, transport and related businesses. Revenue is aware, however, that the majority of hauliers have insignificant levels of business with countries outside the EU at the moment, and so they would derive little benefit from AEO status at present.

As part of the Government wide response to Brexit, Revenue is meeting with representatives groups, including hauliers, and attending industry seminars to discuss the potential issues resulting from Brexit. Revenue has advised businesses to examine the possible impacts of Brexit on their supply chains and to consider applying for one or more of the authorisations or simplifications available that best suit their business model.

Advice and assistance on customs authorisations and simplifications is available on the Revenue website and Revenue will continue to engage with representative groups, taking account of developments in the ongoing EU-UK negotiations.