The mutual recognition on Authorized Economic Operator (AEO) between the customs of China and Ecuador came into effect on Tuesday, allowing enterprises with AEO status from both countries to benefit from easier customs clearance and fostering a more efficient bilateral trade environment.
The AEO system, initiated by the World Customs Organization (WCO), aims to facilitate customs clearance for enterprises by authenticating those with high levels of legal compliance and safety, and a strong credit status through customs agencies.
After the implementation of the mutual recognition, Chinese and Ecuadorian enterprises with AEO status can enjoy a series of preferential measures by both customs, including lower inspection rates for import and export goods, priority inspections, designated customs liaison officers, and priority clearance after international trade interruptions and resumptions.
Ecuador is the fifth Latin American country to implement AEO mutual recognition with China, following Chile, Brazil, Uruguay, and Costa Rica.
"China's circle of friends in AEO mutual recognition continues to expand, making it increasingly smoother for enterprises to go global and boosting their sense of accomplishment. Through targeted cultivation, we will help more enterprises obtain AEO status and enjoy the credit dividend. As of now, a total of 7,029 enterprises nationwide hold AEO status, with 901 of them conducting import and export activities with Ecuador from January to May 2025," said He Shengjing, deputy chief of the enterprise management division at Qingdao Customs.
So far, the number of economies that have signed AEO mutual recognition agreements with China has increased to 31, covering 57 countries and regions. China has implemented the mutual recognition with 50 countries and regions.
Therefore, China is ranked first globally in terms of the number of agreements signed, the number of countries and regions involved with AEO mutual recognition, as well as the number of countries and regions having implemented mutual recognition.
With AEO status, enterprises can enjoy faster customs clearance and lower trade costs, thereby enhancing their competitiveness in global trade.
On Monday, a batch of new energy forklifts worth 150,000 U.S. dollars was ready for shipment to Ecuador from a forklift manufacturer with AEO status in Taizhou, east China's Zhejiang Province.
"The AEO mutual recognition agreement signed between China and Ecuador has brought us significant benefits, including a significantly reduced inspection rate. Secondly, it has enhanced the convenience of customs clearance, leading to a substantial reduction in our costs," said Chen Yunfu, person in charge of the forklift manufacturer.
Benefiting from multiple customs preferential measures, enterprises with AEO status demonstrate strong market activity and substantial import volumes, fully unleashing their vitality.
Given that most Chinese enterprises with AEO status are leading entities in industrial and supply chains, as well as major foreign trade backbone enterprises, customs are actively expanding the AEO system to include emerging business types such as cross-border e-commerce and small to medium-sized enterprises. This expansion aims to ensure that a broader spectrum of enterprises of various sizes and types can benefit from the AEO system.
"We will expand the circle of friends in AEO mutual recognition to enable more enterprises to benefit from the mutually beneficial preferential measures provided by China's customs, thereby assisting companies in reducing import and export costs and accelerating their global expansion," said Ren Chaoyu, deputy head of the enterprise management section at Taizhou Customs.
China-Ecuador AEO mutual recognition takes effect
