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China’s General Administration of Customs is now active in promoting mutual recognition agreements (MRAs) on authorized economic operators (AEOs), intending to have concluded such agreements by 2020 with some 20 countries and regions to which 80% of all shipments from China are exported.
MRAs on AEOs are designed to facilitate cargo movement both domestically and internationally while enhancing security in logistics between two economies that both have AEO systems. By approving and accepting each other’s system, they both could reduce domestic customs-clearance inspections and simplify relevant formalities.
So far, China has signed MRAs with Singapore, South Korea, Hong Kong and the European Union (EU). It is estimated the rate at which shipments from Chinese enterprises with AEO systems are inspected by customs in these destinations has fallen to 50% or even lower. Customs formalities are reported to have been accelerated by 30% or even more on average.
Beijing has formulated a plan to conclude MRAs on AEOs by 2020 with approximately 20 countries and regions that import 80% or more commodities from China.
