Thanks to a mutual recognition agreement signed today, trusted traders in the EU and China will benefit from cost-cutting, simplified procedures and greater predictability of their activities. As part of the agreement, the EU and China are committed to recognising each other`s certified safe distributors, so that these companies can benefit from faster control and reduced administration for customs clearance. Mutual recognition of trusted traders also allows Customs to focus its resources on real-risk sectors and thus improve the security of the supply chain on both sides. The EU is the first trading partner to have concluded such an agreement with China after having already signed similar agreements with the United States (2012) and Japan (2011). Mr Algirdas Eemeta, European Commissioner for Taxation and Customs, attended the meeting of the Joint Committee for Customs Cooperation (JCCC) in Beijing for the signing of the agreement. On October 26, 2018, the General Administration of China Customs (GAC) and Japanese Customs officially signed the agreement on mutual recognition of China`s customs business credit management system and the Japanese program for authorized economic operators (hereafter referred to as the “mutual recognition agreement”). Japan thus becomes the 36th country to sign an EOA mutual recognition agreement with China. To date, China has signed mutual recognition agreements with 36 countries/regions, including Singapore, Korea, Hong Kong, the European Union, Australia, New Zealand and Japan, as mutual recognition agreements. China intends to promote mutual recognition of the AEO with its “One Belt and a Road” project and is currently negotiating agreements with Thailand, Russia, Canada, Mexico and co. China also strives to use OAS mutual recognition to promote international supply chain interconnection and trade facilitation, and continues to support the development of foreign trade enterprises. Mutual recognition of the OAS not only provides companies with the comfort of customs clearance, but also the opportunity to conduct a comprehensive review of their current import and export activities, resolve potential problems and reduce customs risks in terms of customs compliance, clearance speed and commercial security. First, an EOPA company exchanges its AEO code with its importers/exporters from countries/regions who have signed an EOA mutual recognition agreement with China; Takehome: The agreement on mutual recognition of the AEO will greatly promote trade between China and Japan. AEO companies can benefit from preferential customs clearance measures.
On October 26, 2018, China GAC and the Japanese Customs Office officially signed the mutual recognition agreement between China`s corporate reredibility management system and Japan`s authorized economic operator system.