Broader scope of AEO programme to bolster trade

SHENZHEN: China will broaden the scope of the Authorised Economic Operator (AEO) programme to encompass emerging sectors such as cross-border ecommerce and a wide array of small and medium enterprises (SMES), thus bolstering commercial exchanges both domestically and globally, says a senior Customs official.

The AEO programme is advocated by the World Customs Organisation (WCO) to strengthen international supply chain security and facilitate the movement of legitimate goods.

Under the programme, Customs authorities from various countries and regions form partnerships with industries to collaboratively cut barriers to Customs procedures and enhance international trade efficiency.

China will work with other WCO members to expand institutional openness in areas such as Customs rules, regulations, management methods and standards to assist more domestic and foreign companies in foreign trade, said Wang Lingjun, vice-minister of China’s General Administration of Customs.

Speaking at the opening ceremony of the WCO Global AEO Conference 2024 in Shenzhen, Guangdong province, on Wednesday, Wang said China will explore the establishment of a regional AEO mutual recognition cooperation mechanism to promote global trade interconnectivity.

By the end of March this year, China had signed AEO mutual recognition agreements with 26 economies, such as the European Union and South Africa, covering 52 countries and regions.

Ian Saunders, secretary-general of the Brussels-based WCO, said it is necessary to simplify the requirements for the AEO programme to make it more accessible to SMES while ensuring a comprehensive understanding of the compliance environment.

It is essential to strengthen the arrangements of mutual recognition agreements and forms of international technical cooperation to expand the advantages of the AEO programme and make it more attractive, said Saunders.