Volvo certified as Authorized Economic Operator by Argentine Customs

In a significant move for the commercial landscape in Argentina, Volvo Trucks & Buses Argentina has recently achieved a prestigious designation by being officially recognized as an Authorized Economic Operator (AEO) by the General Directorate of Customs – ARCA. This accreditation places the company among a select group of businesses in the automotive and heavy transport sectors that have attained this international standard.

Such recognition not only enhances Volvo's reputation but also signifies a commitment to maintaining high standards of compliance and operational excellence in the global supply chain. The AEO program, aligned with the SAFE Framework of the World Customs Organization (WCO), aims to bolster the security of global logistics while ensuring the smooth flow of legitimate trade.

Understanding the Concept of an Authorized Economic Operator (AEO)

The AEO designation is part of a worldwide initiative to promote customs security and efficiency. By implementing best practices, the program encourages businesses to enhance their logistics processes, thus benefiting both the public and private sectors. The key objectives of the AEO framework include:

• Facilitation of international trade
• Improvement of supply chain security
• Strengthening cooperation between customs authorities and businesses
• Encouraging the use of risk management strategies

This framework has been adopted by more than 180 customs administrations that manage approximately 98% of global trade. The benefits of being recognized as an AEO can significantly impact a company's operational capabilities.

The Process of Achieving AEO Status

Obtaining AEO certification is a rigorous process that requires a comprehensive evaluation of a company's compliance with customs regulations and internal controls. According to Diego D'Ardis, Head of Logistics and Imports at Volvo Trucks & Buses Argentina, achieving this status involved passing a thorough audit that validates compliance in various areas, including:

• Fiscal responsibilities
• Document management
• Operational procedures in foreign trade

The certification process for Volvo took between six months and a year, necessitating coordinated efforts across multiple departments such as Finance, Treasury, Legal, Logistics, and Tax. Natalia Pandolfelli, the company's Head of Foreign Trade, noted that they submitted a sworn declaration supported by significant documentation, including certified financial statements and explanatory notes.

Immediate Benefits of AEO Certification for Volvo

One of the most immediate advantages of being recognized as an AEO is the expedited processing of customs procedures. This includes:

• Priority access at border crossings
• Preferential customs scheduling
• Access to specific programs initiated by customs authorities

These benefits not only streamline operations but also foster better relationships with clients and suppliers, enhancing overall supply chain dynamics. D'Ardis emphasized that this recognition positively impacts every segment of the business, from importing parts to after-sales service.

The Growing Importance of AEO in Latin America

In recent years, the AEO status has gained prominence in Latin America and the Caribbean as a strategic tool to increase regional competitiveness and build trust between the public and private sectors. Countries like Brazil, Mexico, Colombia, Peru, Uruguay, and Chile have implemented national programs with hundreds of certified companies, following the lead of international blocs such as the European Union and countries like the United States, Japan, and China.

The adoption of AEO programs in these regions has proven beneficial in enhancing trade efficiency and security, thus making businesses more competitive on a global scale.

Future Steps for Volvo in the AEO Program

Aligned with the global strategy of the Volvo Group, the Argentine subsidiary is already working towards the next phases of the AEO program, which will include categories such as AEO Simplification and AEO Security. The objectives of these categories are as follows:

• AEO Simplification: Aimed at enhancing operational efficiency and automating processes.
• AEO Security: Involves implementing stricter physical and documentation controls in customs management.

D'Ardis mentioned that the company aims to achieve complete traceability while continuously optimizing every link in the logistics chain. This ambitious plan is expected to take between one to two years for each phase.

The Local Impact and Industry Leadership of Volvo

Pandolfelli highlighted that achieving AEO certification is not only significant on a local scale but also positions Volvo as a pioneer in the heavy vehicle segment. Since the reactivation of the AEO program by the AFIP in 2018 (now under ARCA), only a limited number of companies—primarily in the pharmaceutical, food, and technology sectors—have obtained this certification.

“In the heavy vehicles segment, we are among the first to achieve this milestone,” she emphasized, showcasing the company's commitment to excellence and leadership.

Conclusion

Volvo Trucks & Buses Argentina's recognition as an AEO is a landmark achievement that not only underscores the company's dedication to compliance and operational efficiency but also enhances its competitive edge in the international market. By adhering to the AEO framework, Volvo is poised to not only streamline its processes but also set a standard for excellence in the automotive sector in Argentina and beyond.

Mercedes-Benz Trucks and Buses: Supporting Agriculture's Growth

Tata Motors acquires Iveco Group's truck and bus division

Scania opens registration for seventh edition of Conductoras program

First MAN TGX 18.560 Individual PowerLion in Galicia

If you want to know other articles similar to Volvo certified as Authorized Economic Operator by Argentine Customs you can visit the category VOLVO.