The Authorized Economic Operator is another concept developed as a result of the efforts of the Customs Administration to deal with the increasing flow of goods between countries. Since physical inspection of all goods moving across borders hinders international trade, Customs departments select shipments based on their risk management. The idea is to trust reliable companies and focus on commodities that are considered riskier.

The World Customs Organization (WCO SAFE) Standards Framework defines an authorized economic operator as “a party involved in the international movement of goods in any function that has been approved by or on behalf of the national customs administration as complying with WCO or similar supply chain security standards.”