Plurilateral Approach To Mutual Recognition -Myassignmenthelp.Com

Question: Discuss About The Plurilateral Approach To Mutual Recognition? Answer: Introduction The decision of the exit of UK from the European Union has been termed the Brexit or British exit. This decision was taken by UK in the year 2016 with the help of the referendum that was issued on June 23, 2016. The vote that had taken place for the decision of UK to leave the European Union had defied the expectations of the global markets and the value of British pound had fallen to the lowest level. The Prime Minister of UK, David Cameroon resigned from the post in the following month as he was against the decision that was taken by the votes. Cameroon was then succeeded by Theresa May as Prime Minister of UK and the leader of the Conservative party (Baatz2015). The process of Brexit can be divided into two parts which are hard Brexit and soft Brexit. Hard Brexit can be defined as the withdrawal of UK from the European Union where Britain will not participate in the single market of EU and the legal rules related to that market as well. The full control of the immigration system of UK will be in the hands of British government. The rules related to immigration will also become much strict than before. The hard Brexit option would be related to the compliance of UK with the rules of the World Trade Organization or WTO to carry out the trade with Europe. Soft Brexit can be interpreted as the arrangements that can be made when UK will leave the European Union that are related to trade between the countries (Bergin et al. 2017). The softer solution is related to the strategic partnership agreement with the other countries in the European Union. The analysis that will be performed in the report will be based on the AEO scheme related to the Brexit effect in UK. The AEO scheme or Authorised Economic Operator is related to the trade related schemes of the countries that are part of European Union (Busch and Matthes2016). Definition of AEO scheme Authorised Economic Operator or AEO can be defined as the parties who are involved in the movement of international goods which are approved by the national administration while they comply with the WCO or World Customs Organization about the rules related to the security of the supply chain of the organization. Authorised Economic Operators include, importers, manufacturers, brokers, exporters, intermediaries, consolidators, airports, integrated operators, terminal operators, distributors and warehouses (Chang and Wu 2015). The threats related to the security of goods have increased with the increase in global trade and international movement related to the goods. This issue has shifted the focus of the administrators of the customs departments towards providing the security related to the flow of international trade from the major focus of collecting duties. AEO is considered to be one of the major parts related of the SAFE Framework that was introduced by WCO. The core elements of the SAFE Framework are, Harmonization of advance information related to the electronic cargo. The countries which join the SAFE Framework are committed towards the employment of risk management programs that are consistent in nature and are able to address the different threats related to security (Chang-Bong et al. 2016). The customs administration of the sending nation also needs to perform high security checks of risky cargo and containers on the request of the receiving nation. The benefits that will be provided to the businesses by the Customs who comply to the minimal security requirements related to supply chain and follow the best practices as well (Dhingra et al. 2016). The concept related to AEO is found in the Customs-to-business partnerships where the operators of the business are accredited as AEOs by the Customs if they are able to prove the high quality of the internal processes. The businesses cab prove the quality of the internal processes related to supply chain in the following ways, Ensuring the integrity of information related to the things that are present in the containers. Ensuring integrity of the employees, so that they do not put any wrong items in the containers. Securing the access to the premises of the business so that they can prevent unauthorised access (Geerlings, Kuipers and Zuidwijk2017). The European Union had established the AEO concept which was based on standard that are recognised internationally and they also created a legal base for this concept in the year 2008 with the help of security amendments to Community Customs Code or CCC and the provisions related to its implementation. The programme mainly aims towards enhancing the international security of supply chain and thereby to facilitate trade that is legitimate and is also open to the supply chain actors. The AEO status is given by the European Union to those organizations which are established in customs territory related to the Union and is part of the international supply chain (Grainger 2016). The benefits of the AEO Status The benefits that are offered by the AEO are the major part of EU legislation that govern the status of AEO. The different benefits provided by AEO are, The major benefit that is enjoyed by the organizations with AEO certification is the high level of facilitation. The delivery of the containers related to import or export are made directly to the ports. The authorized personnel are provided ID cards so that they can get problem free entry to the various customs houses and departments (Hughes 2017). The organizations receive separate space that are available in the premises of the custodian. The companies with AEO certification receive reduction in the bank guarantee. The investigations related to any type of trade that is done the companies are completed within six or nine months. The organizations also receive notifications through emails related to the arrival as well as departure of vessel that are carrying their consignments. Clearances are received all through the day and night if requested by the organizations at all the ports related to sea and airports (Kasperbauer2017). The scrutiny conducted by the officers related to Custom and the verification of the seal are also waived for the organizations with AEO certification. The duty payments that are to be made by the organizations are also deferred. The various documents of the organizations that are related to import or export are processed on a priority basis. The completion of Special Valuation branch is done quite fast for the accredited organizations as compared to the normal ones. The release time of the cargo of the certified organization is less as compared to the others. The facility is provided to the organizations so that they can paste the MRP stickers (Kee and Nicita2017). The access related to the consolidated data of export and import is given to the accredited organizations. The discussions that are made with the organizations are paperless in nature without any supporting documents. The fees related to overtime of the merchant is also waivered for the accredited organizations. These major benefits are provided to the organizations which have a AEO status. The European Union has also established the AEO status which are related to the countries and the business organizations of those countries which are part of EU (Lu and Koufteros2014). Case study examples related to the benefits of AEO status The first case study is titled as The perceived impacts of AEO security certifications on supply chain efficiency a survey study using structural equation modelling. The impact of AEO status of the organizations on the supply chain activities is the main topic of discussion in the case study. The criminal activities related to the supply chain which include counterfeiting of the cargo, theft related to the cargo are the major vulnerabilities of supply chain. The parliament of Europe has also reported theft related to cargo and lorries in Europe which amounted to a value of 8.2 billion Euros (Urciuoli and Ekwall2015). The Federal Bureau of Investigation of USA has also reported theft of cargo within the range of 10 billion dollars and 30 billion dollars. Other reports related to this issue have shown that the pirated and counterfeited items in Europe have amounted to 176 billion dollars in the year 2007. According to researches that were done in the year 2006 have shown that more tha n 3 million of the total pharmaceutical products were counterfeited (MacDonald 2016). As discussed by, Urciuoli and Ekwall (2015), the supply chain operators of Europe who are interested in mitigating and preventing the consequences that can occur due to the breach in security have the choice of joining voluntary programs of certifications, certification of the businesses and the certifications of the authority that are issued by the governments. The supply chain managers have to face new challenges that are related decisions that are made related to the choice of certifications and also to evaluate the impact that the certifications can have on the supply chain of the organizations. The research related to the organizations have many diverse opinions related to this issue. The researchers sometimes claim that the costs related to certification are sometimes an extra burden for the organizations. The loss of efficiency is related to the loss of competitive advantage that the organization holds in the market (Masouros and Papadopoulos 2016). The main purpose of the case study is to boost the understanding related to the impacts that AEO certification has on the efficiency of the supply chain of an organization. This research is mainly conducted to analyse whether the AEO certification is able to provide companies which comply with rules of the certification with benefits that are beyond the improvement of security (McGrattan and Waddle 2017). The AEO programme is comprised of a wide range of programmes related to trans-border security which are available to the managers so that they can secure the supply chain. The AEO certification is not mandatory for the organizations. however, they voluntarily apply for this. The AEO concept is a major part of the SAFE Framework which is related to the standards that are designed by World Customs Organization (WCO) which help in the dissemination the requirements of security. The legal requirements of the AEO programme are explained in the European Council Regulation. The AEO certifications are evaluated with the help of the Customs authority. The certificates of AEO are provided based on criterion that can benefit the organizations. The certifications related to AEO are available in many different forms including, AEO-C, AEO-S, AEO-F (Mendez-Parra, teVelde and Winters 2016). The real impact of the AEO certifications on the efficiency and security of the organizations are questioned by many researchers. The implementation of the AEO guidelines are not performed in an efficient manner as it is the complete responsibility of the organizations without any detailing done by the AEO certification body. The security of the organizations can be hampered in the process and the company can incur monetary or non-monetary loss. The impact of AEO certifications can also be analysed from the efficiency point of view. The major importance lies in the mutual recognition and this requires data sharing from government-to-business viewpoint. Mutual recognition is important for the organizations, which operate on an international basis. The certification of AEO gives the international organizations a quality mark that is recognized internationally and they do not need to follow multiple certifications (Thompson 2016). Complying with the requirements of the AEO certification intensifies the way by which communication and data sharing is performed between the international companies. This could further result into an extra burden for the administration of the organization. The improvement of security related to the organization can further increase the efficiency of the organizational processes. The relation between the efficiency and security has been discussed in the case study that is taken into consideration. The analysis in the case study has revealed that the AEO certification is used by the organizations to facilitate the trade related operations rather than enhancing the security of the operations. The European organizations have therefore been affected by the rules and regulations that are set for the countri es that are members of EU. Brexit will further impact the laws of AEO related to the United Kingdom (Urciuoli and Ekwall2015). The second study has been titled as The adoption of Authorised Economic Operator standards in the UK. United Kingdom is considered to be one of the largest traders in terms of goods in Europe. The International trade with the member countries of the European Union and the non-member countries have been an important part of the European economy. This has contributed hugely in the competitiveness of the country, levels of the employment and the living standards of the citizens of the country (Gond 2016). The EU AEO Programme had been launched in the year 2008, which encompassed the import as well as the export related activities in the supply chain of the organizations. The members of the European Union are legally bound to implement the AEO certification in the organizations and volunteer the other organizations as well. The customs of the Member states of European Union needs to build public and private partnerships and promoting the certification provided by AEO to organizations, which can fulfil the requirements in the supply chain. The offer that is given by this certification is favourable for both the parties, as on one side the operators of the companies can enjoy simplified and faster procedures related to the customs, on the other hand, the customs officers also need to do few checks (Wadsworth et al. 2016). The required resources can be allocated to the areas, which are high-risk zones. The numbers of organizations, which are certified organization under the AEO, are growi ng from the year 2008 to 2010. The case study mainly discusses the role that is played by the government of UK in increasing the number of AEO certifications. The dynamics related to the standardisation of the organization are related to three major perspectives, which are, standardisation by organisation, standardisation of organisation and standardisation as organisation. The AEO Programme related to European Union comprises of multi-level thematic standards. The principles and values that are related to the AEO are formulated from WCO on an international basis to the European Union. The various aspects of the AEO certification intertwine many different domains like, competition, economy and compatibility with legal texts, data protection of WTO (Ziv et al. 2018). According to, Gond (2016), the two major aspects of the case study related to AEO are major AEO drivers of the business organizations in the private sector and thereby exploring the relation between the benefits of AEO and the business performance of the companies certified by AEO. The other aspect of the case study is the standardisation and the governments that are under AEO context which focus on the government-to-business relationships, mutual recognition and the IT related solutions that act as the enablers so that the performance of the customs administration can be improved. The competitiveness is the major advantage that is desired from the European Union single market. The single market for trade can be achieved only with the collaboration of the individual governments of the states and the EU standardisation as well (Gond 2016). The AEO certification has been of major help for trade related to the different countries who are the members of the European Union. Implications of Hard Brexit The major implications of Hard Brexit: will be faced by the United Kingdom in the year 2019 without the Free Trade Agreement. The scenario that has been developed between European Union and the UK will relate to the mutual membership in the WTO. United Kigdom is quite less dependent on the intra-regional trade as compared to the other members of the European Union. This less dependency is related to the central position of the country in Europe and the high involvement of UK in the business related to the rest of the world. The exposure of United Kingdom to the trade that occurs within EU is quite significant. In the year 2015, 46% of the total British exports go to the EU and around 55% of the imports from United Kingdom come from the EU. Therefore, Hard Brexit can have huge impact on the trade between the organizations of the Member states of EU. Conclusion The report can be concluded by stating that the Brexit situation has a huge impact on the trade between the member countries of the European Union. The AEO certification helps in the increase of the security and efficiency of the supply chain of the organizations to a certain extent. The withdrawal of the United Kingdom from EU can further affect the AEO rules and regulations that are set by the body. The foreign trade is affected by the vulnerability in the situation that is created due to the Brexit effect. The amount of AEO certified organization varies largely between the member states itself. This number is the lowest in case of the United Kingdom. The transition from zero fees to the WTO-bound fees can have huge impact on the foreign trade of UK.The two case studies have shown different implications of Brexit on the UK and the supply chain of the organizations as well. The over strict nature of the security management programs can cause a loss in the flexibility and reliability of the transport chains. This further affects the capability of the organization to react instantly to the volatility in the market. References Baatz, B., 2015. Everyone Benefits: Practices and Recommendations for Utility System Benefits of Energy Efficiency. 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