National Assembly passes bill to tighten AEO recertification rules

The National Assembly on Thursday passed a bill preventing companies that lose their Authorized Economic Operator (AEO) status through fraud or legal violations from reapplying for certification for two years.

The legislation, which cleared the plenary session in its original form on the 23rd, addresses a gap in current regulations regarding entities attempting to regain privileged status after decertification. Current law allows customs authorities to grant benefits like reduced inspection rates to firms meeting strict financial and safety standards, but the amendment imposes a mandatory waiting period on any firm whose certification was cancelled due to false applications or breaches of export-related laws.

Representative Park Min-kyu and 11 co-sponsors originally proposed the measure on Jan. 8 as Bill No. 2215907. The bill was referred to the Committee on Strategy and Finance before reaching the floor.

Under the new Article 255-5, the two-year ban applies specifically to cases where certification was revoked for fraudulent acquisition or violations of export-import statutes. The AEO program, administered by the Korea Customs Service, certifies exporters based on compliance with laws, internal control systems, financial soundness, and security management criteria.