Integration of MSMEs into Authorised Economic Operator (AEO) Programmes

Accounting for around 90% of businesses worldwide and over half of total employment, MSMEs play a vital role in international trade. Yet these companies often struggle to integrate into global value chains due to disproportionate challenges in meeting complex Customs requirements and navigating border procedures – barriers that larger companies are generally better equipped to manage.

This makes it difficult for smaller companies to export or import goods efficiently, causing delays, higher administrative costs and missed opportunities to access new markets and grow their businesses.

To reward compliance and build mutual trust between Customs and business, Authorised Economic Operator, or AEO, programmes provide trusted traders with tangible benefits such as simplified procedures, fewer inspections, reduced documentation and data requirements and faster clearance times. For smaller firms, these programmes can make trading across borders easier, but participation remains low.

An AEO is a business certified by Customs as meeting defined standards of security, compliance and reliability across its supply chain. The concept was developed under the World Customs Organization (WCO), SAFE Framework of Standards, which promotes partnership between Customs and the private sector to improve supply chain security and facilitate legitimate trade.

This report, prepared by the International Chamber of Commerce, the World Customs Organization and the World Trade Organization, explores the integration of MSMEs into Authorised Economic Operator programmes. Drawing on extensive consultations and surveys, it includes an analysis of current programme participation and case studies from China, Dominican Republic, the European Union, Hong Kong, India, Indonesia, Japan, Morocco, New Zealand and South Africa.

Key challenges :

• Lack of information and awareness: Many MSMEs are unfamiliar with AEO opportunities or find available guidance too complex.
• Difficulties in navigating procedures: MSMEs are deterred by the complexity of the application process and the ongoing compliance requirements.
• Resource and capacity constraints: Smaller firms often lack the financial and human resources to meet certification and compliance requirements.
• Perceived cost-benefit imbalance: Some MSMEs doubt that the tangible benefits of AEO status outweigh the cost of certification.
• Lack of capacity within Customs: Inadequate understanding, client management and tailored support hinder access.

Making AEO programmes more inclusive for MSMEs

The report sets out a series of recommendations to help Customs authorities make AEO programmes more accessible and effective for smaller firms. Below are some of the key areas for action. The full set of recommendations can be found in the report.

1. Raise awareness: Many MSMEs remain unaware of AEO programmes or how to join them. Targeted outreach, clear online guidance and real business stories can help close this gap.

2. Simplify and digitalise: Complex, paper-heavy procedures deter participation. Digital application systems and simplified requirements can make certification faster and easier.

3. Strengthen MSME support: Tailored training, dedicated helpdesks and financial or technical assistance can help smaller firms meet AEO standards.

4. Improve coordination: Recognising AEO certification across different government agencies would make participation more valuable and reduce duplication.

5. Reinforce credibility and benefits: AEO programmes must deliver clear, tangible advantages, such as priority clearance or fewer inspections, to keep firms engaged and demonstrate their value.

Examples of good practice

The report also showcases successful initiatives to enhance MSME inclusion in AEO programmes, including:

• Simplified accreditation in the Dominican Republic
• Tiered approaches in Hong Kong
• Targeted awareness campaigns in India
• Flexible eligibility criteria in the European Union.

By adopting these measures, Customs administrations can make AEO programmes more inclusive while preserving the integrity and security of border operations and helping more MSMEs to participate fully in global trade.