Authorized Economic Operator (AEO) programs create customs-business partnership directed toward the security of the supply chain and facilitation of legal, low-risk trade. Authorized business entities are checked at the border much less often than ordinary importers and exporters.
On August 26, at the request and initiative of the Shanghai Cooperation Organization’s SCODA division, Armenian-Chinese Partnership Center organized an online meeting between the China Customs and the RA SRC to start the process of mutual recognition of the Authorized Economic Operator (AEO) program.
AEO enterprises of the countries that have signed Mutual Recognition Agreements (MRAs), can enjoy the convenience of customs clearance, which may effectively reduce trade costs of port, insurance and logistics as well as enhance their international competitiveness.
When goods from AEO enterprises are exported to the countries that have achieved mutual recognition with China, inspection and customs clearance time can be reduced by 60%, and costs can be reduced by more than 50%.
Since 2008, China has been implementing the AEO program and vigorously promoting international cooperation toward mutual recognition of the program.
So far China has signed MRAs with 78 countries and 22 regions, including Russia, Kazakhstan (SCO member countries), Iran, Belarus and Mongolia (SCO observer countries).
Enterprises with AEO accreditation can directly benefit from the convenience of reducing inspection rate of local customs and customs clearance, thereby reducing trade-related costs.