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07
2016
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03
Foreign Trade Knowledge Lecture Hall: What is AEO?
Author:
Chongqing Xintu Import and Export Trade Co., Ltd., as the first batch of enterprises in Chongqing to obtain "AEO" qualification, will explain to you, Whatis "AEO"! AEO(AuthorizedEconomicOperator) Certified Operator (AuthorizedEconomicOperator): Defined in the Framework of Standards for the Security and Facilitation of Global Trade developed by the World Customs Organization (WCO) as: "Participating in the international flow of goods in any way and being recognized by customs authorities as complying with the World Customs Organization or the appropriate supply chain security."
Chongqing Xintu Import and Export Trade Co., Ltd., as the first batch of enterprises in Chongqing to obtain "AEO" qualification, will explain to you, Whatis "AEO"!
AEO(AuthorizedEconomicOperator)
Certified operator (AuthorizedEconomicOperator): defined in the Framework of Standards for the Security and Facilitation of Global Trade developed by the World Customs Organization (WCO) as: "A party that participates in the international flow of goods in any way and is determined by the customs authorities to meet the World Customs Organization or corresponding supply chain security standards, including producers, importers, exporters, customs brokers, carriers, tallymen, brokers, ports and airports, cargo terminal operators, integrated operators, warehousing operators and distributors".
Definition of AEO
The World Customs Organization (WCO) has developed a set of standards to protect and facilitate growing international commerce and international trade, which has been promoted through the Framework of Standards to Secure and Facilitate Global Trade (hereinafter referred to as the Framework) adopted by the Customs Cooperation Council at its annual meeting in 2005. Most of the members expressed their willingness to start the implementation of the "Framework" to the World Customs Organization, and the Chinese delegation also formally signed the letter of intent to implement the relevant contents of the "Framework" gradually.
The Framework includes four core elements, two pillars, 17 standards and technical provisions on the 17 standards.
The four core elements include: the requirement for advance submission of electronic information on import, export and trans-shipment goods; the use of consistent risk management tools; the inspection of high-risk containers and goods exported by the customs of the exporting country at the reasonable request of the importing country; and the requirement that customs provide appropriate facilities to the business community that meets the standard.
Based on these four elements, the Framework proposes two pillars for supply chain security, namely, cooperative arrangements between customs and customs and partnerships between customs and the business community. The first pillar, the cooperative arrangements between customs and customs, includes 11 standards, such as "Customs shall operate in accordance with the customs control procedures set out in the World Customs Organization Guide on Integrated Supply Chain Management (ISCMGuidelines)", covering various aspects of customs control such as supply chain management, inspection powers and inspection techniques, risk management and control, electronic information exchange, performance and security assessment, and staff integrity. These standards will also encourage cooperation between customs and other government departments, help the Government to implement unified border management and control, and enable the Government to expand the authority and responsibilities of customs in this area by taking the necessary measures. The second pillar is the cooperation between customs and business, including six standards. Enterprises should implement self-assessment procedures based on the safety standards set by customs, the security measures that supply chain operators should take themselves, the acquisition of authorization certification, the adoption of new technologies, cooperation and exchange with customs, and the conditions for obtaining trade facilities, etc. Of these, achieving the status of "certified operator" and being recognized by other parties in the supply chain is probably the most important for enterprises engaged in international trade, which will enable them to gain the confidence of all parties and benefit from various trade facilitation measures, such as faster customs clearance of goods due to lower inspection rates, and the establishment of a set of international standards that achieve consistency and predictability, reduce diverse and complex reporting requirements, saving time, cost, etc.
In order to implement these standards, the Framework also establishes detailed implementation rules (also known as technical provisions) for each standard. For example, the implementation rules on the second pillar standard stipulate that, with regard to partnerships, "the jointly developed customs-business partnership document shall, as far as possible, initiate written and verifiable security steps and procedures based on the business model of the certified operator (AEO) to ensure that AEO's business partners, including manufacturers, product suppliers and businessmen in general, declare their intention to comply with the provisions of the standards in the Framework of Standards for Safeguarding Global Trade Security and Facilitation"; with regard to security, "trade-sensitive data should be protected through the necessary automatic backup methods, such as personal allocation password accounts that require regular renewal of new certificates, appropriate information system security training and protection against unauthorized access or misuse of information"; With regard to authorization, "customs authorities should work with business representatives to design a confirmation system or qualification system so that enterprises can be incentivized by obtaining certified operator qualifications", "The Customs Offices shall mutually recognize the status of AEO". Most of the criteria and implementation rules of the Framework are derived from the relevant conventions already developed by the World Customs Organization and some of the more successful practices of its members.
Benefits of implementing the AEO system for enterprises
The Framework is based on four core elements, the last of which is related to business benefits, on the facilitation measures that Customs provides to businesses after the business community meets supply chain security standards and best practices (Framework, 1.3). The 3.3 of the Framework also provides specific examples for reference. Effective implementation of the Framework would ultimately balance the issues of trade security and facilitation well. Providing tangible benefits to AEO businesses is a measure of balance.
Due to the limitations of domestic law, the Customs shall clarify the benefits that can be granted within the scope of its authority. Standard 3 under Pillar 2 of the Framework states that these benefits must be practical and explicit. These preferential policies must be higher or higher than the measures provided to non-certified operators, and not less than the existing measures.
The ultimate goal of the Framework is the implementation of a set of core WCO international standards. These international standards are recognized in domestic law. But these preferential policies should be adjusted at different stages of the project. Training for members should focus on providing preferential policies, such as facilitation mechanisms for low-risk goods and improved global supply chain security.
Preferential policies should be meaningful, traceable and reportable. The preferential cases in this section should be classified and provided to members for reference. This does not require the establishment of a set of preferential policies that all customs must provide, they only provide some kind of reference, the premise must be approved by the customs.
1. Fast customs clearance, reduce transit time and storage costs
A. Reduce the data items for the release of goods;
B. Accelerate the release of goods;
C. Minimization of cargo security inspections;
D. Give priority to the use of non-invasive inspection techniques in the inspection process;
E. Appropriately reduce the costs of well-abiding AEO enterprises;
F. According to actual needs, extend the customs office hours.
2.AEO enterprises provide valuable information channels
A. with the consent of the AEO enterprise, provide its information and contact details to other certification operators;
B. List of countries that have accepted the Framework;
C. List of recognized security standards and best practices.
3. Special measures for periods of vulnerability or increased risk
A. In the special period of security level, the customs shall give priority treatment;
B. Priority clearance measures following the closure or reopening of a border or port;
C. Give priority to exporting to the victim country after the occurrence of the dangerous incident.
4. Prioritize participation in any new cargo clearance reform project
A. Adopt account-based centralized customs clearance procedures instead of ticket-by-ticket customs clearance;
B. simplify the follow-up inspection procedures;
C. Allow self-inspection or reduce customs inspection;
D. expedited procedures for post-arrival and post-clearance cargo investigations;
E. The penalty may be mitigated in the assessment of liquidated damages or administrative penalty procedures, and the deception may be carried out;
F. Increase paperless customs clearance for the import and export of goods;
G. Customs gives priority to responding to requests for rulings;
H. Allowing customs declaration in different places;
I. Allow the Customs to take remedial measures before starting the administrative penalty procedure, except for fraud;
J. If the tax is not paid within the time limit, no additional fine or penalty shall be imposed, only interest shall be charged.
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