AEO Program of China Customs. By Xu Qiuyue Director General Department of Post Clearance Audit of GACC . Concept of AEO :. AEO: Authorized Economic Operator AEO Program is: --One of the two pillars of Framework of Standards to Secure and Facilitate Global trade (SAFE) ’ ,
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By Xu Qiuyue
Department of Post Clearance Audit of GACC
--One of the two pillars of Framework of Standards to Secure and Facilitate Global trade (SAFE)’,
--A partnership cooperation program between Customs and trade
--Aiming to secure and facilitate global supply train security.
A. China’s Practices on implementing AEO Program.
Provisional Measures for the Customs Verification Audit was publicized on 30th April 2008 which specifies the rules, procedures, methods, and contents of Verification Audit for AEO.
Operational criteria of Customs Verification Audit was established in December 2008 which includes 35 criteria in 4 groups.
To help customs gather internal and external information of companies and link the status of companies to the declaration system.
B. Main contents of MCME
--Scopes: consignors and consignees, customs brokers (that includes 6 types of operators: importers, exporters, manufacturers, warehouse operators, customs brokers, freight forwarders)
Class AA: the highest class, AEO of Chinese Customs
Class A: the high class, preliminary AEO
Class B: normal class
Class C: the lower class
Class D: the lowest class
--Criteria of classifying:
--Enterprises' level of compliance with laws, regulations, Customs rules and relevant anti-corruption provisions;
--Operational and managerial performance, status of safety and security;
--Records kept in the process of Customs control and Customs statistics compilation.
--Management principles :
--Facilitating compliance and safety, different management measures for different categories
--Enterprises of Class AA and Class A can enjoy facilitation benefits;
--Enterprises of Class B shall be subjected to regular measures
--and enterprises of Class C and Class D shall be subjected to strict control.
--Number of categories ( Up to June 2010 )：
Companies of Class AA are AEOs of China Customs, and should:
--comply with Customs laws and regulations;
--have a good financial status.
--have a strict internal control system;
--comply with supply train security requirements;
--be subject to Customs verification Audit.
Benefits linked to Class AA of consignees and consignors of importers and exporters:
--Assigning specific people to help companies coordinating and resolving difficult customs issues.
--Applying lower examine rate to their import and export cargoes;
And including benefits to Class A:
--Declarations at registration place, and inspections and clearance procedures at ports
--Giving priority to send people to enterprises, carrying out checks and inspections of the production or assembling and disassembling links
--Performing inspection and clearance formalities at the business site
--Giving priority to handling urgent customs clearance formalities out of working hours and during holidays
--Performing The Nominal Payment of The Bank Guarantee Deposit Account System or not operating The Bank Guarantee Deposit Account System
--Giving priority to handling processing trade formalities such as entering records modifying and reporting for verification purposes
--Giving priority to handling declaration registration formalities.
--Standards of Verification Audit, following into internal control, compliance with import and export laws and regulations, financial status and trade security, totally 35 criteria of 22 items in 4 groups.
--Methods of Verification Audit: paper checking, observing on the spot , inquiry and conversation.
--Monitoring: daily monitoring, and post audit.
--3 rounds of meeting on legislation comparison of AEO programs were held in 2008 under SSTL Pilot;
--Exchanging visits of Joint Audit were made in 2009.
--A report of evaluation and recommendations to JCCC is being drafted.
--The MRA is expected to be signed by the end of 2010.
--A Joint statement about Joint Validation Pilot was signed in 2008;
--3 rounds of Joint Validations Pilot were made during 2008-2010, 40 Chinese manufacturers were validated and 34 got passed.
--Pilot evaluation and a new Cooperation plan are being made.
C. China-Japan, Korea:
-- The first Tripartite Working Group on AEO was held in September 2009, mapping out the goal and action steps on AEO cooperation among the three parties.
D. China- Singapore:
-- AEO working group was established in 2009;
--Legislation comparison was made in January 2010.
Working plan of next step Customs
A. Improve the AEO Program of China Customs
--To revise MCME
--To Improve the Integration Management system of Enterprises Information
B. To implement AEO mutual recognition step by step