China on Thursday signed Authorized Economic Operator (AEO) mutual recognition agreements with Burundi and Iceland at the ongoing sixth World Customs Organization (WCO) Global AEO Conference in Shenzhen City, south China's Guangdong Province, maintaining its global leadership in the number of agreements as it looks to facilitate smoother customs clearances. So far, the country has signed AEO mutual recognition agreements with 28 economies, including Singapore and the European Union, covering 54 countries and regions, while there are more than 5,800 enterprises with AEO status in China.
The AEO system, initiated by the WCO, aims to facilitate customs clearance for enterprises through customs agencies' authentication of enterprises with high levels of legal compliance and safety, and a high credit status.
Enterprises with AEO status can enjoy a series of preferential management measures such as priority processing, reduced frequency of supervision, and optimized services, which effectively reduce the cost of international trade and enhance international competitiveness of enterprises.
Icelandic officials say the agreement will allow businesses easier access and enable them to tap into the vast potential of the Chinese market, while the move will also benefit small and medium-sized enterprises。
"We have many companies that we define as small and medium-sized enterprises, and for them it's very important to have a simple procedure. So, this (AEO mutual recognition agreement) will probably benefit those companies the most," said Snorri Olsen, director of internal revenue and customs of Iceland.
"Taking Shenzhen as an example, the import and export goods between the city and Iceland primarily consist of electromechanical products, along with agricultural products and other commodities. The industries related to these products will benefit the most from these trades. The import and export goods between Shenzhen and Burundi also include electromechanical products, as well as ceramic products," added Mu Xiaofei, deputy director of the enterprise management and inspection division at Shenzhen Customs.
Speaking at the opening ceremony of the WCO Global AEO Conference 2024 on Wednesday, Wang Lingjun, deputy head of the General Administration of Customs (GAC) of China, said the country will explore the establishment of a regional AEO mutual recognition cooperation mechanism to benefit countries across the wider Asia region and promote global trade interconnectivity.
"We aim to innovatively expand an international cooperation model of AEO, provide AEO capacity-building assistance to Mongolia, Turkmenistan and other countries, and achieve automatic data exchange for AEO mutual recognition with the European Union and China's Hong Kong Special Administrative Region. These efforts will help products from various countries enter the Chinese market easier and quicker," said Wang.
The three-day conference, co-hosted by the WCO, the Chinese General Administration of Customs (GAC) and the municipal government of Shenzhen, will run through Friday under the theme of "harnessing the power of AEO programmes for inclusive and sustainable global trade."
More than 1,200 delegates from customs authorities, international organizations, AEO enterprises, governments agencies, academic institutions, and industry associations from more than 100 countries and regions are attending the event.
China signs more AEO mutual recognition deals to boost customs clearance
