By Rui Hu, EDITOR
China and Belarus entered into an official Arrangement of the General Administration of Customs of the People’s Republic of China and the State Customs Committee of the Republic of Belarus， on the Mutual Recognition of the Enterprise Credit Management System of the People’s Republic of China and the Authorized Economic Operator (AEO) System of the Republic of Belarus. The arrangement will take effect on July 24, 2019. That means exporters from both countries benefit from much easier customs clearance. Currently, 53 enterprises in Chongqing, including Quanta Chongqing Manufacturing City, have been granted AEO status.
Link: List of countries implementing mutual recognition of AEO with China customs
Link: China’s AEO Joint Incentive Programme
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Remarkable facilitation of customs clearance for both countries
AEO refers to Authorized Economic Operators. The AEO system, based on international rules, aims at facilitating customs clearance for enterprises through authentication by customs with a high level of credit status, law compliance, and safety management.
Under the agreement, companies that obtain the AEO status in the two countries will enjoy simplified customs procedures, allowing an effective reduction of trade costs in ports, insurance, logistics, etc. and accordingly an improvement of their international competitiveness.
According to the agreement, the customs of both countries will recognize the Authorized Economic Operators accredited by the customs services of the other country and provide products imported and exported from the other country with convenience in respect of customs clearance.
Specifically, the convenience includes reduced and prioritized examination, timely communication by designated boarding officers, prioritized and faster clearance, including prioritized clearance after recovery of a suspended transaction.
Link: How to obtain an AEO status?
More countries are expected to sign AEO agreement with China by the end of 2020
Currently, China customs have achieved mutual recognition of AEO with 14 economies and 41 countries and regions, including 28 EU members, Singapore, South Korea, Switzerland, New Zealand, Israel, Australia, Japan, Mongolia, Uruguay, and UAE.
According to China customs, the Arrangement also offers excellent convenience to trade along the Belt and Road.
According to an insider of the General Administration of Customs, to promote stable growth of foreign trade and optimize the business climate, China customs plans to sign by the end of 2020 AEO agreements with all countries along the Belt and Road that have AEO systems and the willingness to cooperate.
Source: CQCB
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