What Is an Authorized Economic Operator?

I sometimes get calls from exporters who have been asked by their international customers for their AEO number for import customs clearance.

The calls are all very similar:

What is an AEO code, and how do I find out what ours is?

My short answer:

AEO stands for Authorized Economic Operator, a customs-business partnership program based on international standards developed by the World Customs Organization (WCO). Different countries have their own versions of AEO programs. In the United States, the comparable program is the Customs Trade Partnership Against Terrorism (CTPAT).

There is no universal AEO number assigned to every U.S. exporter. Unless your company participates in CTPAT or has been approved under another country's AEO program, you generally won't have an AEO identifier. If you are a CTPAT member and a foreign customer asks for your "AEO number," ask what identifier their customs authority requires, since the information used for mutual recognition varies by country and program.

Here's my more detailed answer:

The Origin of CTPAT

In response to the 2001 terrorist attacks on the World Trade Center towers and the Pentagon, the United States took steps to secure its global supply chain to ensure that the millions of shipping containers and other cargo that enter the U.S. each year don't include weapons of mass destruction. One of these steps was the Customs Trade Partnership Against Terrorism.

CTPAT is a voluntary program in which participating businesses in the international supply chain cooperate with U.S. Customs and Border Protection (CBP) to identify security gaps and implement appropriate security measures. After reviewing existing security procedures and implementing enhanced security arrangements, CBP certifies companies as CTPAT members.

CTPAT has more than 11,000 members across a variety of industry sectors. Participants include U.S. importers and exporters, highway carriers, rail and sea carriers, licensed U.S. Customs brokers, marine port authorities and terminal operators, freight consolidators, ocean transportation intermediaries, non-vessel-operating common carriers, certain foreign manufacturers and other eligible supply-chain participants.

For companies, the advantages of participating in CTPAT or one of the other AEO programs include:

• Being considered low risk by customs authorities, which should result in fewer border delays due to examinations.
• Faster access to the border and business resumption benefits in the event of border disruptions. This results in time savings, less risk of spoiled perishable goods, and a more predictable border experience overall.
• Reduced risk of potential tampering with their shipments. This builds confidence with customs and border authorities and enhances a company’s reputation and marketability.

The Expansion of AEO

In 2005, the World Customs Organization (WCO) adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade. The WCO introduced its Authorized Economic Operator (AEO) program in 2007 as the framework's flagship customs-business partnership program.

As defined by the WCO, “the Authorized Economic Operator (AEO) is a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national customs administration as complying with WCO or equivalent supply chain security standards.” Those standards relate to the following areas:

• Demonstrated compliance with customs requirements
• Satisfactory system for management of commercial records
• Financial viability
• Consultation, cooperation and communication
• Education, training and awareness
• Information exchange, access and confidentiality
• Cargo security
• Conveyance security
• Premises security
• Personnel security
• Trading partner security
• Crisis management and incident recovery
• Measurement, analysis and improvement

The WCO continues to update the SAFE Framework as supply-chain risks evolve. The 2025 edition maintained the framework's core elements while adding new emphasis on making AEO programs accessible to micro, small and medium-sized enterprises (MSMEs), adopting codes of conduct focused on ethics, addressing insider threats and improving cooperation between customs and environmental authorities.

AEO programs allow customs administrations to identify companies that have demonstrated that they meet specified security and compliance standards. Customs authorities can then take that trusted-trader status into account when assessing risk and may provide benefits such as fewer examinations, priority treatment or faster clearance.

The exact benefits vary by country, program and type of participant. Mutual recognition between customs administrations can extend some of those benefits across borders when the two countries recognize each other's trusted-trader programs.

Mutual Recognition of AEOs

For AEO programs to deliver benefits across borders, customs administrations may agree to recognize compatible trusted-trader programs in other countries. These are known as Mutual Recognition Arrangements (MRAs). Under an MRA, the participating customs administrations recognize that their respective programs have compatible security standards and verification procedures and can take a company's trusted-trader status into account when assessing risk.

CBP currently has 19 Mutual Recognition Arrangements with foreign customs administrations:

• Brazil
• Canada
• Colombia
• Dominican Republic
• European Union
• Guatemala
• India
• Israel
• Japan
• Jordan
• Korea
• Mexico
• New Zealand
• Peru
• Singapore
• South Africa
• Taiwan
• United Kingdom
• Uruguay

Participating In an AEO Program

Participation in CTPAT is voluntary and there are no costs associated with joining the program. A company can apply here.

According to the CBP website, the application process is easy:

• The first step is for the company to review the CTPAT Minimum Security Criteria for their business entity to determine eligibility for the program.
• The second step is for the company to submit a basic application via the CTPAT Portal system and to agree to voluntarily participate.
• The third step is for the company to complete a supply chain security profile. The security profile explains how the company is meeting CTPAT’s minimum security criteria. In order to do this, the company should have already conducted a risk assessment.

Upon satisfactory completion of the application and supply chain security profile, the applicant company is assigned a CTPAT Supply Chain Security Specialist to review the submitted materials and to provide program guidance on an ongoing basis.

The CTPAT program will then have up to 90 days to certify the company into the program or to reject the application. If certified, the company will be validated within a year of certification. After the initial validation, CTPAT generally operates on a four-year revalidation cycle. Partners can review their scheduled validation year through the CTPAT Portal.

Do U.S. Exporters Have an AEO Number?

If an international customer asks for your AEO number, don't assume there is a standard number every U.S. exporter should have. If your company does not participate in CTPAT or another country's AEO program, you generally will not have an AEO identifier. If you are a CTPAT member, ask the customer which identifier their customs authority needs for import clearance or mutual-recognition purposes.

There are advantages to participating in such a program whether you are an exporter, importer or both. Depending on the destination country and applicable mutual-recognition arrangement, participation may help your foreign customers receive customs facilitation benefits when importing your goods. But I've also heard from U.S. companies who have questioned the benefits of participating in CTPAT versus the time and expense of getting approved by and complying with the program. If your company hasn't yet looked at participating in the CTPAT program, it may be worth a review. 

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This article was first published in October 2018 and has been updated to include current information about CTPAT, AEO programs, Mutual Recognition Arrangements and the WCO SAFE Framework.