TERMS AND CONDITIONS FOR FULFILLING THE CONDITIONS AND REQUIREMENTS OF A CERTIFIED ECONOMIC OPERATOR (AUTHORIZED ECONOMIC OPERATOR)

1. Compliance with the Provisions of Customs Regulations and Related Legislation

a. Has a good compliance record with customs and/or excise regulations for the last 2 (two) years, including never misusing facilities in the customs and/or excise field;

b. Does not have overdue customs and/or excise obligations;

c. Designs and implements standard operating procedures, as well as monitoring and evaluation processes to support compliance with customs regulations, excise, and/or other relevant regulations from Ministries/Institutions, including permits for import-export activities.

2. Trade Data Management System

a. Has and maintains an accurate, complete, and verifiable recording system, enabling the Directorate General of Customs and Excise to conduct inspections and track the movement of import and export cargo (traceable);

b. Implements information and technology systems that can prevent and detect unauthorized access/interventions (secure);

c. Designs a recording system that provides full access to the Directorate General of Customs and Excise for obtaining the necessary bookkeeping and cargo movement data in the import and export activities, in accordance with applicable regulations (accessible);

d. Has a good internal control system.

3. Financial Capability

a. Has sufficient financial standing to meet all commitments and financial obligations in accordance with the nature of the business;

b. Obtains:

1) An unqualified opinion (unqualified opinion); or

2) At least a qualified opinion (qualified opinion) for small and medium industries/businesses,

based on financial statements audited by a public accountant for the last 2 (two) years.

4. Consultation, Cooperation, and Communication System

a. Appoints a manager handling Authorized Economic Operator (AEO) with exclusive authority over certain information access for the Economic Operator;

b. Has a mechanism for informing the Directorate General of Customs and Excise specifically about:

1) Unusual or suspicious transactions in the import or export documentation, or related to abnormal requests from certain parties for transport; and/or

2) The discovery of inconsistencies in cargo (including illegal, suspicious, or undelivered cargo), and that cargo must be secured properly;

c. Conducts consultations and cooperates with the Directorate General of Customs and Excise in internal discussions about customs or security regulations and with its supplier network.

5. Education, Training, and Awareness System

a. Has a mechanism for training employees related to the security of the supply chain of goods movement, the mechanism for identifying potential internal threats to the supply chain security, the mechanism for identifying deviations from certain policies, and the actions to be taken in response to such incidents. This includes preparing training materials, providing expert speakers, and documenting the training methods and events; and/or

b. Organizes education and training to foster employee awareness of cargo security, maintaining cargo integrity, recognizing internal potential threats to security, protecting access control, and the ability to identify irregularities or emerging threats and analyzing the appropriate actions for the Economic Operator.

6. Safety and Security Management System

a. Information Exchange, Access, and Confidentiality:

1) Has and develops the use of information technology systems as a mechanism for data and information exchange, so that confidential information is protected from misuse and unauthorized use;

2) Has procedures to ensure the accuracy, protection, and validation of all data and information regarding the release or receipt of goods, and sufficient backup systems to protect and prevent the loss of information related to the goods movement supply chain;

3) Has policies to document all security-related information and procedures and/or controls related to security, such as firewalls, passwords, etc., to protect the Economic Operator's electronic systems from unauthorized access; and/or

4) Has procedures to ensure that all information used in the cargo clearance process is legible and understandable, complete and accurate, and protected from deletion or incorrect input;

b. Cargo Security:

1) Has, develops, and maintains security policies or other relevant guidelines in line with security guidelines issued by the World Customs Organization (WCO) to safeguard cargo integrity while under supervision;

2) Ensures cargo integrity as the primary priority that must be maintained and controlled, and establishes routine procedures aimed at safeguarding cargo, whether in storage areas, during transport, loading, or unloading, so as to prevent unauthorized persons from accessing, manipulating, or handling cargo improperly;

3) Has and develops mechanisms and systems for sealing, including written procedures that specify how seals should be controlled and applied to cargo vehicles and/or transportation, in accordance with prescribed criteria, and authorizes certain personnel to handle matters related to sealing;

4) Has procedures to inspect the structure of the transport vehicle. If applicable, a seven/eight-point inspection process is recommended:

a) Front wall;

b) Left side;

c) Right side;

d) Floor;

e) Ceiling/roof;

f) Inner/outer door;

g) Exterior/bottom; and

h) Fan housing on refrigerated containers;

5) Security and monitoring procedures to ensure that unauthorized persons cannot access cargo or authorized persons cannot manipulate, move, or handle cargo improperly;

6) Verifies the identity of carriers entering/leaving the premises and takes action if the carrier's identity cannot be verified; and/or

7) If possible, compares cargo with the description in the documentation or electronic information submitted to the Directorate General of Customs and Excise;

c. Goods Movement Security:

1) Has procedures to ensure that all vehicles used for cargo transport within the supply chain meet security standards;

2) Has procedures to ensure that carriers used for cargo transportation are trained to maintain the security and integrity of the vehicle and cargo at all times, in accordance with the authority and responsibilities given to the Economic Operator;

3) Carriers designated by the Economic Operator must have and develop a reporting and recording system for any suspicious incidents to be communicated to security officers; and/or

4) Has procedures to check vehicles/locations that may potentially conceal goods and records such activities;

d. Location Security:

1) In line with the business process and risk analysis, applies security measures and procedures to secure the building, including monitoring and controlling the outer and inner perimeter, and restricting unauthorized access to facilities, vehicles, loading docks, and cargo areas, which may affect the security of its supply chain responsibilities. If access control is not possible, other preventive security measures may be required. Based on a risk analysis, location security should include:

a) Buildings should be constructed from materials resistant to unlawful entry;

b) The structural integrity of buildings should be maintained through periodic inspections and repairs;

c) All windows, gates, and external and internal fences should be secured with locks or alternative monitoring/access control measures;

d) Management or security officers should control all keys;

e) Adequate lighting should be provided inside and outside the building, including areas such as entrances, cargo handling/storage areas, fences, and parking lots;

f) Vehicle and/or pedestrian gates for entry or exit should be guarded, monitored, or supervised by other mechanisms. Economic Operators should ensure that vehicles requiring access to restricted areas are parked in designated areas and monitored, with vehicle plate numbers recorded;

g) Only identified and authorized persons (including guests and vendors) and identified vehicles and goods are allowed to enter the premises. Operator must have procedures to identify, record, and manage unauthorized or unidentified persons;

h) Have a proper perimeter and clearly marked location boundaries;

i) Have mechanisms to limit access to document or cargo storage areas and procedures for handling unauthorized or unidentified persons;

j) Have appropriate security systems such as theft alarms, CCTV, and/or access control systems; and/or

k) Restricted areas must be clearly identified; and/or

2) If necessary, the Economic Operator provides access to the security monitoring systems used for location security to the Directorate General of Customs and Excise;

e. Employee Security:

1) Takes preventive actions when recruiting new employees to verify they have not been previously convicted for security reasons or criminal acts;

2) Has procedures for conducting regular background checks on employees, especially those placed in critical positions such as document processing, receipt, handling, and storage of goods;

3) Has procedures for removing all data and information and canceling access authorizations for employees who leave the company; and/or

4) Has procedures for identifying employees on company premises, such as requiring them to carry official company-issued identification;

f. Business Partner Security:

1) When negotiating contracts with business partners, encourages them to assess and improve their supply chain security and business model, and incorporates this statement into the contract. Additionally, the Economic Operator must retain documentation supporting this effort to ensure that its business partners meet the requirements and submit this information to the Directorate General of Customs and Excise if requested;

2) Reviews relevant trade information related to business partners before the Economic Operator begins cooperation with the partner; and

3) Assesses the conditions and AEO-related requirements relevant to their business partners to encourage improved compliance and security in the supply chain;

g. Crisis Management and Incident Recovery:

Has procedures for crisis management and incident recovery, including initial planning and the establishment of processes for handling extraordinary events. This criterion includes developing and documenting contingency plans for security emergencies and disasters, as well as collaborating with the relevant authorities when needed, including regular employee training and testing the contingency plans.

7. Measurement, Analysis, and Improvement System

a. Periodically conducts a security risk assessment of its operational activities and takes appropriate actions to mitigate those risks;

b. Establishes procedures and conducts regular internal audits; and

c. Internal audits and responsible parties are fully documented, including a review of assessment results, feedback from management, and planned recommendations for improvements to ensure continued compliance with AEO conditions and requirements.