There are more and more enterprises seeing the importance of AEO accreditation, hence, I’d like to introduce some basic knowledge of AEO herein.
What is the arising background of AEO accreditation?
In order to protect global supply chain from the terrorist threat, Customs Administrations of the world needed to secure the movement of global trade in a way that does not impede but, on the contrary, facilitates the movement of that trade. Therefore, the World Customs Organization (WCO) adopted SAFE Framework in 2005 where standards to secure and facilitate the ever-growing flow of goods in international commerce are set forth. There are two pillars in SAFE Framework, which are Customs-to-Customs network arrangements and Customs-to-Business partnerships. The latter is actually the partnership between Customs and Authorized Economic Operator (AEO).
So what is the reason for Customs to cooperate with Authorized Economic Operator?
The global trading system is vulnerable to terrorist that would severely damage global economy; however, it is an unacceptable and an unnecessary burden to inspect every shipment. In fact, doing so would bring global trade to a halt. So if enterprise itself can assess the threat to its supply chain and address the security issues, Customs can ensure the security of the global trade. Such programmes push assessments on the trade security back into the supply chain. In this way, both trade security and trade facilitation are guaranteed.
Can AEO accredited enterprises really benefit from the AEO accreditation?
The answer is YES. One of the four core elements of SAFE Framework is that the Framework will ensure that AEOs see a benefit to their investment in good security systems and practices, including reduced risk-targeting assessments and inspections, simplified examination of documentation, priority in processing import and export clearance formalities. In addition, Senior AEO enterprise of China can also enjoy the preferential treatment such as designated Customs coordinator, exemption from account set-up and deposit for processing trade, respectively low inspection rate and Customs clearance priority in the trade resumption from the trade disruptions in AEO mutual recognized countries, which will greatly save the time and the cost. Moreover, SAFE Framework clearly stipulates that Customs administration should not burden enterprises with different set of requirements for AEO accreditation.