News
Shipments exported from South Korea to China handled by South Korean Authorized Economic Operators (AEOs) have been clearing customs in China much faster—by as much as 62%—since the mutual recognition arrangement (MRA) between the two Asian economies took effect on April 1, according to the Korea Customs Service (KCS).
Mutual recognition is a concept whereby an action or decision taken or an authorization that has been properly granted by one customs administration, is recognized and accepted by another customs administration. Under the MRA regime, AEOs in one country will receive clearance benefits at the same level with AEOs in the counterpart country.
The KCS reckoned time required for having commodities from South Korea clear customs inspections in China (from when import declarations were made to when the cargo was delivered out of customs facilities) during the three months before and after the enforcement of the MRA.
The customs service discovered that the average amount of time for having shipments handled by South Korean AEOs clear inspections in China had been reduced by 62.1%—or from 10 hours and 17 minutes to three hours and 54 minutes.
When commodities were exported from China to South Korea by Chinese AEOs, meanwhile, the average amount of time had been cut down by 55.9% from five hours and 10 minutes to two hours and 16 minutes, the KCS added.
