Customs cooperation with B&R economies to be expanded

China is planning to expand mutual cooperation in Customs activities with all the economies involved in the Belt and Road Initiative by 2020, under the aegis of the Authorized Economic Operator program, an official said on Thursday.

The AEO is a system that was advocated by the World Customs Organization. It requires customs authorities to evaluate the status of corporate compliance, credit and security and facilitate clearance accordingly. Reliant on mutual recognition, the program seeks to enhance the efficacy of Customs clearance and shorten the time needed for clearance and by extension lowering the associated trade costs.

The scheme was promoted to eliminate the security threats arising from global trade. An AEO company can benefit from lower inspection rates and lower Customs clearance costs, often to the extent of 50 percent, when exporting goods to a mutually recognized destination.

“China has achieved mutual recognition with Customs officials in 35 countries and regions,” said Yu Guangzhou, the minister for the General Administration of Customs of China. “By 2020, we will try our best to implement the mutual recognition to all the economies in the Belt and Road Initiative.”

To further facilitate international trade, Yu said, Chinese Customs authorities will step up efforts this year to bolster international Customs cooperation.

Trade between China and the Belt and Road Initiative economies stood at 7.4 trillion yuan ($1.12 trillion) in 2017, up 17.8 percent year-on-year. There was a considerable increase in both exports and imports, with the former rising 12.1 percent on an annual basis to 4.3 trillion yuan and the latter by 26.8 percent to 3.1 trillion yuan.