Somethings you don’t know about AEO
What is AEO?
"AEO" is the abbreviation of "Authorized Economic Operator", which means "authorized operator". The AEO is an important system in the World Customs Organization (WCO) "Framework of Standards on Global Trade Security and Facilitation", which aims to improve the security and convenience of international trade supply chains. AEO's certification standards mainly include four aspects: Internal control, Financial status, Compliance with Laws and Regulations, and Trade security.
Enterprises that have passed the AEO certification will be considered by the customs as honest, law-abiding, and safe enterprises, so they will be given the greatest degree of convenience for customs clearance. In June 2005, the Chinese customs office signed the "Standard Framework" letter of intent, and since April 2008, the AEO system has been implemented.
Which countries does China customs have for mutual recognition of AEO?
As of the end of August 2021, China Customs has signed AEO mutual recognition arrangements (agreements) with 46 countries or regions in 20 economies including Singapore, South Korea, and the European Union, ranking first in the world in the number of countries or regions with mutual recognition. Among them, 19 countries along with the "Belt and Road", 5 RCEP (Regional Comprehensive Economic Partnership) member countries, and 13 Central and Eastern European countries.
The import and export volume of Chinese AEO enterprises (advanced certified enterprises) to countries or regions with mutual recognition of AEO accounts for about 60% of their total import and export volume.
Benefits of Customs AEO Advanced Certification
Advanced AEO certified enterprises can enjoy the convenience of customs clearance provided by the customs of countries or regions with mutual recognition of AEO, including special channels, reduced inspections, priority processing, simplified procedures, etc. The enterprise obtains the customs AEO advanced certification, which is equivalent to obtaining the "international passport" for product export and will enjoy many convenient measures in the customs clearance of China and related countries with mutual recognition.
Taking China and the EU as an example, since the implementation of China-EU AEO Mutual Recognition on November 1, 2015, the goods exported to the EU by China's advanced certified AEO enterprises can enjoy the convenience of customs clearance in the 28 EU member states. The average customs clearance inspection rate has decreased by about 70%, and the customs clearance speed has improved above 50%.
So immediately ask your supplier if they have passed the AEO certification, there may be unexpected surprises!