AEO: Authorized Economic Operator / Authorized Operator

1. Definition

China: A party that participates in the international circulation of goods in any way and is determined by the customs authorities to comply with law-abiding norms or supply chain security control standards. Including manufacturers, importers, exporters, customs brokers, carriers, tallies, middlemen, ports and airports, cargo terminal operators, general operators, warehousing operators and distributors.

2. International Background of AEO

A. After the "9/11 terrorist attacks"...

The role of customs has expanded from being limited to safeguarding national economic security to the field of overall national security.

Ø Economic globalization has promoted the development of information and logistics, which requires the simplification of customs procedures. Terrorist attacks can disrupt international trade. To ensure trade security, strict customs supervision is required. Trade security and trade facilitation are in conflict.

Ø International Customs actively expands the functions of customs, so that the role of customs is expanded from the protection of national economic security to the field of overall national security.

The U.S. Border Trade Protection Agency CBP (U.S. Customs) was launched in November 2001 and officially implemented the "Customs-Business Counterterrorism Partnership Program" on April 16, 2002

B. SAFE: The Framework of Standards for Security and Facilitation of Global Trade (SAFE) was adopted at the 105th/106th Annual Session of the WCO Council in June 2005

four core elements

advance electronic information

Risk Management

export inspection

business partnership

Harmonized requirements for electronic cargo information submitted in advance for import, export and trans-shipment shipments;

Members joining the Framework of Standards commit to a consistent approach to risk management against security threats;

At the request of the importing country, the customs of the exporting country should inspect the export high-risk containers and goods, and try to use non-invasive inspection equipment as much as possible.

It stipulates that member customs shall provide corresponding facilities to enterprises that meet the minimum standards of supply chain security and adopt appropriate practices.

c. AEO by country

※ - China AEO in China

- US: C-TPAT in the United States,

- EU: AEO in Europe,

    - JAPAN Japanese: AEO

    - SingaporeSingapore: STP,

    - Canada Canada: PIP

    - Sweden Sweden: Stair SEC,

    - New Zealand: SES…..

3. Background and History of AEO in China

1. Chinese Enterprise Classification and AEO History

--In 1999, the customs implemented classified management on enterprises, which were divided into four categories: A, B, C, and D.

--On April 1, 2008/Order No. 170 of the General Administration of Customs, the new classification method was promulgated, which is divided into five categories: AA, A, B, C, and D, marking the initial establishment of my country's AEO system, of which category AA is connected to international AEO.

-- On January 1, 2011, the new classification method was revised

--December 1, 2014/Order No. 225 of the General Administration of Customs, the interim measures for enterprise credit management were promulgated, and the AEO system was fully established

--On May 1, 2018/Order No. 237 of the General Administration of Customs, the revision of enterprise credit management measures was promulgated.

2. The realistic background and new environment of AEO certification in China

--International mutual recognition, helping Chinese enterprises to "connect the world with customs", high-credit enterprises implement joint incentives between international customs and enjoy preferential trade facilitation.

--In May 2016, the State Council issued the "Guiding Opinions of the State Council on Establishing and Improving the System of Joint Incentives for Trustworthy and Joint Punishment for Dishonesty to Accelerate the Construction of Social Integrity"

--As of June 2016, my country has achieved AEO mutual recognition with 31 countries (regions), and the export trade volume of mutually recognized enterprises accounts for 40% of my country's total export volume.

4. China's AEO system

1. China AEO credit rating

China AEO is divided into 2 grades (AEO general certified enterprise, AEO advanced certified enterprise)

5. China AEO Certification Standards

According to the Announcement No. 82 of 2014 of the General Administration of Customs, "Customs Certification Enterprise Standards", the certification is implemented. Among them, there are 29 indicators for general certification and 32 indicators for advanced certification.

6. China AEO certification method

1. AEO certification is official certification:

A. General certification: On-site certification is carried out by the local customs and approval by the directly-affiliated customs

B. Advanced Certification: On-site certification and approval will be arranged by the customs directly under the