Abstract:
Trade facilitation is a mechanism through which measures are taken to make trade easier, quicker and cheaper. This can achieved by simplifying custom procedures relating to the clearance of goods with reducing bureaucracy in import, export trade process and harmonizing national laws and rules with international standardized trade regimes. Minimizing the number of laws, guidelines and regulations regarding international trade is also the other mechanism through which trade facilitation can be achieved. Authorized Economic Operator is a program developed after 9/11 New York attack by a group of terrorist. The program has been initiated to secure the security of supply while facilitating trade. Member countries to the WCO have adopted AEO program to facilitate cross border trade and to secure the national security and supply chain in their own respective jurisdictions. Ethiopia Revenue and Custom Authority has launched Authorized Economic Operators program as a trade facilitation scheme in 2008 as per article 14(2) and 112 (2) of the Custom proclamation number 622/2008 and Authorized Economic Operators directive No.65/2011. This study was conducted to examine the problems in regulation of Authorized Economic Operator program implementation in Ethiopia custom. In Ethiopia companies joining the AEO program have been increasing from time to time, even if there are legal gaps and a little understanding on the overall nature and benefits of the program around operators, regulator and with other regulatory bodies. The study has combined both doctrinal and non doctrinal legal research methodologies. The writer has extensively reviewed literatures and has also conducted focused group discussion (FGD) with selected stakeholder and distributed questionnaire to selected targets. The researcher has scientifically selected samples among the available total population. The finding of the study indicated that the existing custom legal regimes are inefficient to regulate the AEO program and institutional structures relate to AEO was weak to organize and to take legal and administrative measure to correct problems affecting the regulation of the AEO program.