aeo program of china customs aeo program of china customs by xu qiuyue director general department...

AEO Program of China AEO Program of China CustomsCustoms

By Xu QiuyueBy Xu QiuyueDirector General Director General

Department of Post Clearance Audit of GADepartment of Post Clearance Audit of GACC CC

Concept of AEO :Concept of AEO :

• AEO: Authorized Economic OperatorAEO: Authorized Economic Operator

• AEO Program is: AEO Program is:

--One of the two pillars of Framework of Standard--One of the two pillars of Framework of Standards to Secure and Facilitate Global trade (SAFE)’,s to Secure and Facilitate Global trade (SAFE)’,

--A partnership cooperation program between Cu--A partnership cooperation program between Customs and tradestoms and trade

--Aiming to secure and facilitate global supply trai--Aiming to secure and facilitate global supply train security.n security.

AEO Program of China CustomsAEO Program of China Customs


A. China’s Practices on A. China’s Practices on implementing AEO implementing AEO Program..

• 1.Transforming AEO concept into 1.Transforming AEO concept into an internal program: Measures on an internal program: Measures on Classified Management of Classified Management of enterprises (MCME)—AEO program enterprises (MCME)—AEO program of China Customs was entered into of China Customs was entered into forced on 1st April 2008.forced on 1st April 2008.


• 2. Establishing Verification Audit system.2. Establishing Verification Audit system. Provisional Measures for the Customs VerifProvisional Measures for the Customs Verif

ication Audit was publicized ication Audit was publicized on 30th on 30th April 2008 which specifies the rules, April 2008 which specifies the rules, procedures, methods, and contents of procedures, methods, and contents of Verification Audit for AEO.Verification Audit for AEO.

Operational criteria of Customs VerificatioOperational criteria of Customs Verification Audit was established in December 2008 n Audit was established in December 2008 which includes 35 criteria in 4 groups.which includes 35 criteria in 4 groups.


• 3. Developing a computer system named 3. Developing a computer system named Integration Management system of Integration Management system of Enterprises Information in August 2009.Enterprises Information in August 2009.

To help customs gather internal and To help customs gather internal and external information of companies and link external information of companies and link the status of companies to the declaration the status of companies to the declaration system.system.

• 4.Others measures: introducing AEO 4.Others measures: introducing AEO concept to customs and publics, training.concept to customs and publics, training.


B. Main contents of MCMEB. Main contents of MCME

• 1.Main contents of MCME1.Main contents of MCME

--Scopes: consignors and consignees, customs --Scopes: consignors and consignees, customs brokers (that includes 6 types of operators: ibrokers (that includes 6 types of operators: importers, exporters, manufacturers, warehmporters, exporters, manufacturers, warehouse operators, customs brokers, freight forouse operators, customs brokers, freight forwarders) warders)


--5 categories: --5 categories: Class AA: the highest class, AEO of ChiClass AA: the highest class, AEO of Chi

nese Customsnese Customs Class A: the high class, preliminary AEClass A: the high class, preliminary AE

O O Class B: normal class Class B: normal class Class C: the lower class Class C: the lower class Class D: the lowest classClass D: the lowest class


--Criteria of classifying: --Criteria of classifying: --Enterprises' level of compliance with laws, regulations, Cust--Enterprises' level of compliance with laws, regulations, Cust

oms rules and relevant anti-corruption provisions; oms rules and relevant anti-corruption provisions; --Operational and managerial performance, status of safety an--Operational and managerial performance, status of safety an

d security;d security;--Records kept in the process of Customs control and Customs --Records kept in the process of Customs control and Customs

statistics compilation.statistics compilation.

--Management principles :--Management principles :--Facilitating compliance and safety, different management m--Facilitating compliance and safety, different management m

easures for different categories easures for different categories --Enterprises of Class AA and Class A can enjoy facilitation be--Enterprises of Class AA and Class A can enjoy facilitation be

nefits; nefits; --Enterprises of Class B shall be subjected to regular measures --Enterprises of Class B shall be subjected to regular measures --and enterprises of Class C and Class D shall be subjected to s--and enterprises of Class C and Class D shall be subjected to s

trict control.trict control.


--Number of categories ( Up to June 20--Number of categories ( Up to June 2010 )10 )：：

--AA--AA ：： 15601560 --A--A ：： 2119821198 --B--B ：： 421094421094 --C--C ：： 865865 --D--D ：： 184184


• 2.companies of Class AA:2.companies of Class AA:

Companies of Class AA are AEOs of China CuCompanies of Class AA are AEOs of China Customs, and should:stoms, and should:

--comply with Customs laws and regulations;--comply with Customs laws and regulations; --have a good financial status.--have a good financial status. --have a strict internal control system;--have a strict internal control system; --comply with supply train security require--comply with supply train security require

ments;ments; --be subject to Customs verification Audit.--be subject to Customs verification Audit.


Benefits linked to Class AA of consignees and coBenefits linked to Class AA of consignees and consignors of importers and exporters:nsignors of importers and exporters:

--Trust release; --Trust release;

--Assigning specific people to help --Assigning specific people to help companies coordinating and resolving companies coordinating and resolving difficult customs issues. difficult customs issues.

--Applying lower examine rate to their import a--Applying lower examine rate to their import and export cargoes;nd export cargoes;


And including benefits to Class A:And including benefits to Class A:

--Declarations at registration place, and --Declarations at registration place, and inspections and clearance procedures at portsinspections and clearance procedures at ports

--Giving priority to send people to enterprises, --Giving priority to send people to enterprises, carrying out checks and inspections of the carrying out checks and inspections of the production or assembling and disassembling production or assembling and disassembling links links

--Performing inspection and clearance --Performing inspection and clearance formalities at the business site formalities at the business site

… …


--Giving priority to handling urgent customs clearance --Giving priority to handling urgent customs clearance formalities out of working hours and during holidays formalities out of working hours and during holidays

--Performing The Nominal Payment of The Bank --Performing The Nominal Payment of The Bank Guarantee Deposit Account System or not operating Guarantee Deposit Account System or not operating The Bank Guarantee Deposit Account System The Bank Guarantee Deposit Account System

--Giving priority to handling processing trade --Giving priority to handling processing trade formalities such as entering records modifying and formalities such as entering records modifying and reporting for verification purposes reporting for verification purposes

--Giving priority to handling declaration registration --Giving priority to handling declaration registration formalities.formalities.

AEO Program of China CustomsAEO Program of China Customs• 3.Verification Audit 3.Verification Audit

--Standards of Verification Audit, following into int--Standards of Verification Audit, following into internal control, compliance with import and export ernal control, compliance with import and export laws and regulations, financial status and trade slaws and regulations, financial status and trade security, totally 35 criteria of 22 items in 4 groups.ecurity, totally 35 criteria of 22 items in 4 groups.

--Methods of Verification Audit: paper checking, ob--Methods of Verification Audit: paper checking, observing on the spot , inquiry and conversation.serving on the spot , inquiry and conversation.

--Monitoring: daily monitoring, and post audit.--Monitoring: daily monitoring, and post audit.

Practices on International cooperation Practices on International cooperation of AEO by China Customsof AEO by China Customs


A. China-EU:A. China-EU:--3 rounds of meeting on legislation comparison of AEO progr--3 rounds of meeting on legislation comparison of AEO progr

ams were held in 2008 under SSTL Pilot;ams were held in 2008 under SSTL Pilot;--Exchanging visits of Joint Audit were made in 2009.--Exchanging visits of Joint Audit were made in 2009.--A report of evaluation and recommendations to JCCC is bein--A report of evaluation and recommendations to JCCC is bein

g drafted.g drafted.--The MRA is expected to be signed by the end of 2010.--The MRA is expected to be signed by the end of 2010. B. China-US: B. China-US: --A Joint statement about Joint Validation Pilot was signed in 2--A Joint statement about Joint Validation Pilot was signed in 2

008;008;--3 rounds of Joint Validations Pilot were made during 2008-20--3 rounds of Joint Validations Pilot were made during 2008-20

10, 40 Chinese manufacturers were validated and 34 got pas10, 40 Chinese manufacturers were validated and 34 got passed.sed.

--Pilot evaluation and a new Cooperation plan are being made. --Pilot evaluation and a new Cooperation plan are being made.


C. China-Japan, Korea:C. China-Japan, Korea:-- The first -- The first Tripartite Working Group on Tripartite Working Group on AEO waAEO wa

s held in September 2009, mapping out the goal as held in September 2009, mapping out the goal and action steps on AEO cooperation among the thnd action steps on AEO cooperation among the three parties.ree parties.

D. China- Singapore:D. China- Singapore:-- AEO working group was established in 2009;-- AEO working group was established in 2009;--Legislation comparison was made in January 2010.--Legislation comparison was made in January 2010.

Working plan of next stepWorking plan of next step

Working plan of next stepWorking plan of next step

A. Improve the AEO Program of China CustoA. Improve the AEO Program of China Customs ms

--To revise MCME--To revise MCME --To Improve the Integration Management --To Improve the Integration Management

system of Enterprises Information system of Enterprises Information

B. To implement AEO mutual recognition stB. To implement AEO mutual recognition step by stepep by step

Thank you!Thank you!

aeo program of china customs aeo program of china customs by xu qiuyue director general department...

Documents

customs rules

customs laws

customs brokers

aeos of china customs

concept of aeo

aeo concept

lower class class d

lower class class c