It is a generally accepted part of modern business that supply chains need to be secure and trusted. Manufacturers can incur huge losses if raw materials are delayed or delivery times are missed.
The US Department of Homeland Security explains how, “Securing the global supply chain, while ensuring its smooth functioning, is essential to our national security and economic prosperity. This vital system provides the goods that feed our domestic critical infrastructures and support our way of life.”
Meanwhile, a major part of global international relations revolves around the World Customs Organisation, which was established in 1952 to help “enhance the effectiveness and efficiency of Customs administrations” in an effort to defend the security of the global supply chain through honest and open transactions. Given the importance of the chemical industry to the world economy and the prosperity and happiness of Earth’s residents, then the WCO is a key player in the safety and security of the chemical supply chain.
The smooth running of international trade cannot be underestimated. In fact, business consultants the world over have established an entire industry focused on improving supply chain management. Firms such as BSI Group, which explains how, “Your supply chain needs to be secure, resilient and well managed. No matter how extensive or complex it may be.”
But while larger firms may be able to pay for expensive consultants to help prevent production delays through supply chain failures, what can smaller and medium size enterprises do?
Well, they can gain a lot by working with business partners who have Authorised Economic Operator certification. As the European Commission reports, “The AEO concept is based on the Customs-to-Business partnership introduced by the World Customs Organisation (WCO). Traders who voluntarily meet a wide range of criteria work in close cooperation with customs authorities to assure the common objective of supply chain security and are entitled to enjoy benefits throughout the EU.
The EU established its AEO concept based on the internationally recognised standards, creating a legal basis for it in 2008 through the 'security amendments' to the ‘Community Customs Code‘ (CCC) (Regulation (EC) 648/2005) and its implementing provisions.”
While much of this may sound like more paperwork for trading, it is actually a key part of the world economy, estbalished to allow for international transactions to be conducted in a clear and effective manner. The overall goal of which is to improve international trade, and by doing so improve the quality of life for the global population.
The EU Commission further outlines how, “The programme, which aims to enhance international supply chain security and to facilitate legitimate trade, is open to all supply chain actors. It covers economic operators authorised for customs simplification (AEOC), security and safety (AEOS) or a combination of the two (AEOF).
On the basis of Article 39 of the Union Customs Code (UCC), the AEO status can be granted to any economic operator meeting the following common criteria.”
With such an effective tool of good business governance available to companies both large and small, it would be a confident trader who would do business with a firm that wasn’t AEO certified.
Would you sign a contract to buy a chemical product without knowing the price? Would you buy a chemical product without knowing the quality? Would you buy a chemical product from a chemical manufacturer or chemical supplier who wasn’t AEO certified?
AG CHEMI GROUP has been granted AEOF status by the Czech Government, according to (Article 38 (4) UCC), it has AEO status recognised by all EU member states.
Companies can therefore purchase industrial chemical supplies and raw materials from AG CHEMI GROUP in the knowledge that all transactions will be carried out in an open and honest forum. Supplies across international borders will be made in an efficient and seemless manner.
Learn more about AG CHEMI GROUP’s range of industrial chemical products.
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