China, Burundi and Iceland Sign Customs AEO Mutual Recognition Arrangements

Communication Author: EqualOcean News Editor: 周雯 May 09, 2024 05:04 PM (GMT+8)

EqualOcean has learned that on May 9, 2024, during the 6th Global AEO Conference of the World Customs Organization held in Shenzhen, the General Administration of Customs of China signed Customs AEO Mutual Recognition Arrangements ("Authorized Economic Operator" system mutual recognition arrangements) respectively with the Tax Administration of the Republic of Burundi (an African country) and the Directorate of Customs and Tax of Iceland (a European country).

Iceland flag

Following the signing of the mutual recognition arrangements, AEO enterprises of both countries can enjoy four convenience measures, including lower inspection rates for imported goods, priority inspections, designated customs liaison officer services, and priority clearance after international trade interruptions are restored. During the Global AEO Conference held in Shenzhen from May 8th to 10th, apart from the two aforementioned mutual recognition arrangements, the General Administration of Customs also signed a Memorandum of Cooperation on AEO Enterprise Data Exchange with the Macao Customs, which will enhance the timeliness and security of data exchange between mainland China and Macao AEO enterprises. As of May 9th, the conference has achieved a total of three new outcomes.

AEO (Authorized Economic Operator) refers to an enterprise that participates in international goods circulation in any way and meets the standards stipulated by the General Administration of Customs (in accordance with the Measures for the Administration of Enterprise Credit Registration and Filing by the General Administration of Customs of the People's Republic of China). The AEO system is a core system of the World Customs Organization (WCO), aiming to enhance the level of national trade security and facilitation. After signing international mutual recognition agreements, AEO enterprises of the relevant countries (regions) can enjoy facilitation measures during customs clearance, effectively reducing costs such as port, insurance, and logistics for enterprises, thus enhancing the international competitiveness of products.

The AEO Mutual Recognition Arrangement between China and Burundi is the third AEO mutual recognition arrangement signed by China Customs in the African region, following Uganda and South Africa. As a country participating in the construction of the "Belt and Road," the Republic of Burundi is an important trading partner of China in Africa. With the signing of the AEO arrangement between China and Burundi, the number of countries participating in the construction of the "Belt and Road" that have signed AEO mutual recognition arrangements with China has increased to 36.

The signing of the AEO Mutual Recognition Arrangement between China and Iceland marks a new milestone in customs cooperation between China and Iceland. As China is Iceland's largest trading partner in Asia, the signing of the China-Iceland AEO Mutual Recognition Arrangement will actively promote bilateral trade security and facilitation.

After signing mutual recognition arrangements with Burundi and Iceland at the 6th Global AEO Conference of the World Customs Organization, China has signed AEO mutual recognition agreements with 28 economies, covering 54 countries (regions), ranking first globally in terms of the number of mutual recognition agreements signed and the number of recognized countries (regions).