What are the benefits of the Trust and Check Traders Scheme?

With the upcoming EU customs reform promising a more streamlined and efficient approach to trade compliance, the introduction of the Trust and Check Traders scheme stands out. This new initiative offers significant advantages for traders who are willing to commit to higher levels of transparency and collaboration with customs authorities. In this blog, we will delve into the details and benefits of the Trust and Check Traders scheme and what it means for businesses in the EU.

What is the Trust and Check Traders Scheme?

Starting in 2032, traders will be able to apply for the Trust and Check Traders scheme. This partnership between businesses and customs authorities provides authorized traders with 'green lanes' for their goods. In exchange for a high degree of transparency regarding their supply chain, Trust and Check Traders receive benefits such as the release of goods without active customs intervention, provided the information is available in advance and the goods have not been selected for controls.

Stringent requirements

To qualify for the Trust and Check Traders status, traders must meet stringent criteria, including:

1. No serious or repeated infringements of customs legislation and taxation rules.
2. Demonstration of a high level of control over their operations and goods flows.
3. Financial solvency.
4. Practical standards of competence or professional qualifications directly related to the activities carried out.
5. Appropriate safety, security, and compliance standards, tailored to the nature and scope of the activities.
6. An electronic system that provides customs authorities with real-time access to all data on the movement of goods and compliance with applicable requirements.

Benefits of the Trust and Check Traders status

Reduced administrative burden: One of the main advantages of the Trust and Check Traders scheme is the significant reduction in administrative burdens for traders. Authorized Trust and Check Traders can release their goods without active customs intervention, provided the necessary information is available in advance. This accelerates the throughput of goods and reduces the complexity of customs procedures.

Periodic payment of customs duties: Instead of paying customs duties per consignment, Trust and Check Traders can pay these duties periodically. This simplifies financial administration and provides businesses with greater flexibility in cash flow management.

Enhanced customs facilitation: Trust and Check Traders enjoy greater facilitation concerning customs controls, including fewer physical and document-based controls. This results in faster and smoother operations, contributing to a more efficient trading environment.

Advanced risk management: By giving customs authorities real-time access to their electronic systems, Trust and Check Traders help improve risk management and fraud prevention. This transparency strengthens the trust between traders and customs authorities and contributes to a safer trading environment.

Guarantees and waivers: Trust and Check Traders may qualify for a comprehensive guarantee for potential customs debts and other charges with a reduced amount or a guarantee waiver. This provides financial security and reduces the administrative burden associated with managing guarantees.

The future of trade compliance

The Trust and Check Traders scheme is a significant step towards a more harmonized and digital customs union in the EU. It replaces the current Authorized Economic Operator for customs simplifications (AEO-C) status and offers more advanced benefits and facilities. Traders who meet the stringent admission criteria can achieve substantial operational and financial benefits, enabling them to operate more efficiently and competitively in the global market.

The introduction of the Trust and Check Traders scheme within the EU customs reform marks a crucial shift towards a more streamlined and efficient approach to trade compliance. By fostering a partnership between traders and customs authorities, the Trust and Check Traders scheme offers significant benefits that can contribute to a safer, more transparent, and efficient trading system in the EU.

💡 Do you want to read more about the other provisions of the EU customs reform? Then read our article: EU customs reform: a centralised future for trade compliance 

Gateway Software Services continues to closely monitor these developments, ensuring that our customs software solutions comply with the latest regulations and guidelines. Stay informed about the latest updates on the Trust and Check Traders scheme and other important changes in the EU customs reform through our blog.