The Authorized Economic Operator program (known in Mexico as OEA) is a voluntary program created to strengthen and secure the international trade supply chain between Customs and the private sector. With OEA certification, manufacturers can streamline their cross-country shipping, as Authorized Economic Operators have met specific requirements that allow them to be examined at the border significantly less often than standard cross-border traders.
In this article, we’ll explain what OEA certification is, who can apply, and how to get certified.
The OEA certification is a way for companies to demonstrate to Customs authorities that they are safe and reliable. This begins with an application process that demonstrates that the company meets the 11 requirements (noted below) outlined by the Authorized Economic Operator program. These requirements are focused on establishing safety and security across all aspects of operations, demonstrating to other countries that there is a low risk of a threat crossing the border with the certified company’s shipments.
The OEA certification must be renewed each year, and audits performed to continue operations and demonstrate that compliance with OEA's security standards is maintained.
For companies that have secured certification to the United States Customs-Trade Partnership Against Terrorism (CTPAT) or Canada’s Partners in Protection (PIP) program, Mexico’s OEA certification process is roughly equivalent. However, there are some small differences in the documentation required to apply, so securing certification may be done more rapidly with the assistance of a company experienced in navigating regulatory processes in Mexico.
Any organization that performs cross-border trade can apply for OEA certification. Authorized Economic Operators can be manufacturers, logistics companies operating warehouses, brokers, and distributors. Shipping agents can also hold status as Authorized Economic Operators. Program applicants should have at least three years of financial activities from their business, although in some circumstances, new businesses can secure OEA certification as well.
To apply for OEA Certification, companies must submit a written letter of request that includes the company's complete name and customs broker license number, transportation companies with which the company will work, and the main activity of the company. In some cases, companies are required to indicate their PROSEC and IMMEX registration numbers.
There are 11 minimum standards each company must meet in order to qualify for OEA certification. Those minimum standards include:
While OEA is a strictly voluntary program, there are many benefits manufacturers in Mexico should consider. A few of them include:
OEA-certified companies are considered safe and reliable by the authorities and other companies, which is why obtaining an OEA certification is so important. Annual audits are performed to renew the certification, continue operations, and maintain compliance with OEA's security standards.
Essentially, OEA certification provides manufacturers in Mexico flexibility and eases penalties for customs violations and other incidents. Beyond these tangible benefits, companies that participate in Mexico will be perceived as better business partners and more invested in supply chain security.
A practical approach for foreign manufacturers to navigate the complexities of Mexico's import and export environment is by partnering with a shelter service provider. These providers, like Tetakawi, offer a wide range of services designed to help foreign companies operate in Mexico, including assistance with regulatory compliance, human resources, import & export, and much more. A key aspect of these services is their ability to facilitate immediate access to the Authorized Economic Operator (OEA) certification.
Tetakawi, for instance, already holds OEA certifications across all of its legal entities in Mexico and can extend its benefits to companies under its shelter program. This means that companies can immediately enjoy the advantages of OEA certification, such as expedited cross-border trade operations, without going through the lengthy application process themselves.
However, it's worth noting that not every shelter service provider can offer this benefit. The ability to extend OEA certification is unique to certain providers who have themselves met the stringent requirements of the OEA program. That is why it is very important that companies accurately compare the shelter companies they are considering.
This strategic partnership offers an efficient way to secure supply chains and optimize trade operations, helping businesses to thrive in the dynamic environment of international trade.
OEA certification aims to strengthen the supply chain security of foreign trade in Mexico and with its North American trading partners by establishing and enforcing internationally recognized safety standards. For any company exploring the idea of manufacturing in Mexico, the Authorized Economic Operator program is yet one more incentive Mexico offers to help companies streamline their import and export processes.
To streamline the process of securing OEA certification, companies may find it helpful to work with a consultant experienced in this process. Tetakawi has more than three decades of insight into helping companies navigate the regulatory hurdles necessary to bring their manufacturing operations online.
To learn about other ways we can help you streamline your operations, contact Tetakawi today.