An AEO MRA is entered into by and between China Customs and Philippine Customs
On January 4, 2023, the General Administration of Customs of the People’s Republic of China (GACC), represented by director-general Yu Jianhua, and the Bureau of Customs of the Philippines, represented by the commissioner Yogi Filemon Ruiz, concluded an “Authorized Economic Operator (AEO)” Mutual Recognition Arrangement (MRA), hereinafter referred to as Sino-Philippines AEO MRA, at the witness of President Xi Jinping and the Philippine President Ferdinand Romualdez Marcos, with which China Customs becomes the first AEO MRA partner of the Philippines Customs.
As an act to further implement the spirits of the Party’s 20th National Congress and the Central Economic Working Conference, GACC has insisted on high-level and high-quality opening and spared no effort to promote the AEO mutual recognition cooperation with focus on “Belt & Road” co-building countries (regions), so that AEO cooperation will be a well-knitted tie and an effective means for Chinese enterprises to “walk onto the stage” of the international market. The conclusion of “Sino-Philippines AEO MRA” At the beginning of 2023 symbolizes the first success of AEO mutual recognition cooperation and further enlarges our “circle of friends” in AEO mutual recognition. A large number of enterprises engaged in foreign trade would be inspired with enthusiasm and over 1,600 AEO enterprises involved in import and export businesses with the Philippines would benefit a lot.
The Philippines is a “Belt & Road” co-building country, a member country of Regional Comprehensive Economic Partnership (RCEP) and an important trade partner of China in Association of Southeast Asian Nations (ASEAN). In recent years, as a result of intensive efforts in economic and trade cooperation with the Philippines, China has become its largest trade partner for 6 years consecutively. Upon the conclusion of Sino-Philippines AEO MRA, 4 facilitating conditions are issued for exported cargos from AEO companies of the two countries, including low cargo inspection rate, priority in inspection, designated customs contact and priority in customs clearance once international trade is recovered after the interruption, which are expected to significantly shorten the customs clearance time and the costs of port, insurance and logistics consequently.
AEO or Authorized Economic Operator in full name is a trade facilitation program currently in 97 countries (regions). By AEO mutual recognition cooperation with trade partners, China Customers provides active supports to AEO companies from China so that they could enjoy priorities in mutual recognition countries (regions) and lower trade costs. So far, China has concluded AEO MAR with 23 economic entities consisting of 49 countries (regions), including Singapore, EU and South Africa, and tops the world in terms of the number of agreements signed and the number of mutual recognition countries (regions). In the future, China Customs will continue expanding the AEO mutual recognition scope with “Belt & Road” co-building countries (regions) as the core to improve the facilitation level of foreign trade and make contributions to build a power of trade.
What is AEO?
In the full name of Authorized Economic Operator, AEO is a system set up in response to the proposal of WCO to certify companies with good credit standing and high extent and level of legal compliance by customs in order to grant them with concessions.
Source: General Administration of Customs of the People’s Republic of China
Post time: Jan-18-2023