AEO (Authorized Economic Operator) system is the core institution of the “Framework of Standards to Secure and Facilitate Global Trade”. How is China Customs constructing the AEO system? What about the future of global AEO development?

Recently, China Customs representatives attended the 3rd Global AEO Conference organized by the WCO (World Customs Organization) in Cancun, Mexico. On the Conference, the Chinese representatives delivered their own ideas about AEO.

The AEO system of China Customs is based on the “Interim Measures of the General Administration of Customs of the People's Republic of China for Enterprise Credit Management” and the “Criteria of Certified Enterprises of Customs Administration”. China Customs makes full use of AEO standards of the WCO, combining them with Chinese requirements for national credit construction. Through credit management over enterprises, certification for AEO applicants and guidance for enterprises to improve their internal control, financial security and trade security, China Customs is always fostering law-abiding, creditworthy business operation.

China Customs has made the following efforts in AEO system: the first is the “Customs-Enterprise Coordinator” institution to develop much closer partnership with enterprises; the second is training for enterprise certification executors to ensure certification quality; the third is international AEO recognition, upgrading mutual recognition arrangements (MRA); the fourth is increasing facilitation measures for enterprises and researching relevant benefits; the fifth is formulating incentives and disciplines with other government agencies; the sixth is advocating regional AEO cooperation as for the “Belt and Road” Initiative, China-Japan-South Korea Free Trade Area, Greater Tumen Initiative (among China, South Korea, Mongolia and Russia), and China-ASEAN Free Trade Area.

Regarding the future of global AEO cooperation, China Customs concluded the following trends: first, AEO cooperation will play more important role in implementing the WTO’s Trade Facilitation Agreement; second, the mutual recognition will get larger in scale and influence; third, AEOs will grow higher in security, law-abiding and creditability as industrial models; fourth, AEOs will be able to access more and more customs conveniences and benefits; fifth, bilateral AEO recognition will develop to regional multi-lateral recognition; sixth, commercial circles will get a stronger say for their propositions and interests; seventh, the cooperation will be more and more intelligent on information technology.

To further facilitate international AEO cooperation, China Customs proposed at the Conference to improve existing global AEO criteria; enhance mutual promotion between WCO and WTO; use “4E Approach” to promote international AEO recognition, i.e. “Enlarging MRA numbers, Extending MRA benefits, Enhancing MRA effectiveness, and Expanding MRA influence” to upgrade the recognition; strengthen regional cooperation and cooperation with other government agencies; enhance IT system construction and AEO certification training.

The Conference made a summary for AEO status quo. Till now, the AEO program has been established in 69 countries and regions, with 34 MRAs signed.

Regional AEO integration and multilateral recognition has become the new trend. For example, relevant MRAs have recently been concluded in East African Customs Union, “Pacific Alliance” (among Peru, Costa Rica, Chile and Columbia) and in the USA-Canada-Mexico cooperation program.

During the Conference, China Customs representatives made extensive exchanges with the representatives from other countries/regions, especially those having or negotiating or wishing for mutual recognition with China, and achieved positive effects. 

After the Conference, the WCO wrote to thank Chinese representatives for their excellent speeches and contribution to international AEO recognition, hoping for future support and collaboration from China Customs.

The 3rd Global AEO Conference held in Cancun,Mexico

  Kunio Mikuriya, Secretary General of World Customs Organization，hosted the group discussion.

A Chinese representative was in the “AEO Future” group discussion.

 A Chinese representative spoke on the subject “Cooperation between Customs and Enterprises”.