Current Situation of

Japan’s AEO Program

15th March 2018

Tomoyoshi Watanabe

Director For AEO Program

Customs and Tariff Bureau,

Ministry of Finance 1

Outline

1. Japan’s AEO Program at a glance

2. Benefits & Impact

3. MRA Current Status

4. Challenges

5. AEO in Tripartite (JP-CN-KR) Framework

6. Technical Cooperation on AEO

Outline

2

Outline

1. Japan’s AEO Program at a glance

3

Shipping CompanyForwarder

Customs Area

Warehouse

Operators

Customs

Brokers

Type of Operators in Japan’s AEO

Importers

Exporters

abroad

Shipping Company

ImporterForwarder

Exportation

Exporter

Customs Broker

Customs

Airline

Airline

Logistic

Operators

Importers

Exporters Manufacturers

Customs

Customs Area

Customs Broker

Customs

Importation

Scope of Japan’s AEO Program

4

Current Situation

Exporters 241 Exporters

Importers 94 Importers

Warehouse Operators 131 Warehouse Operators

Customs Brokers 183 Customs Brokers

Logistic Operators 7 Logistic Operators

(as of February 15, 2018)

Total: 656 AEOs 5

1 7

100

206233 239 242 238 236 237 240 240 241

45 46

55

7373 79 80 87 88 91 91 91 94

20

55

7487 97 103 113 118 125 127 131

8

21

3147

6879

95119

144183

1

3

3

57

8

8

7

7

0

100

200

300

400

500

600

700

1/4/2006 1/4/2007 1/4/2008 1/4/2009 1/4/2010 1/4/2011 1/4/2012 1/4/2013 1/4/2014 1/4/2015 1/4/2016 1/4/2017 15/2/2018

Importer

WarehouseOperator

CustomsBroker

LogisticOperator

Exporter

46 53 175 342 402 439 469 501 523 549 583 609 656

（As of 15/2/2018）

Transition in the Number of AEOs

Outline

2. Benefits & Impact

7

Premises of ExportersCustoms Area

Procedure for AEO Exporters

General Procedure

Export Permit

Export Declaration

- Export procedures are completed while keeping the cargo in their own premises

- Compliance-reflected reduced examination and inspection

Examination

Inspection

Premises of ExportersCustoms Area

Export Permit

Examination

Inspection

Export Declaration

Compliance Reflected

Benefits of Japan’s AEOs: Exporters

8

General ProcedureAfter placing goods into Customs area

Duty

Payment

Duty

Payment

Import/Duty Payment Declaration

Import DeclarationImport Permit

Import Permit

Examination

Inspection

Duty Payment Declaration

- Pre-arrival lodgment of import declaration and permission

- Compliance-reflected reduced examination and inspection

- Release of cargo before duty/tax payment declaration and duty/tax payment

Before placing goods into Customs area

Procedure for AEO Importers

Examination

Inspection

Ship’s Entry

Ship’s Entry

Compliance Reflected

Benefits of Japan’s AEOs: Importers

9

2,4

2,6

3,1

3,3

4,3

4,9

5,6

10,2

13,1

19,8

26,1

0 5 10 15 20 25 30

Declaration

(Before NACCS)1991

1992

1993

1996

1998

2001

2004

2009

2006

Time Release Study on Imported Sea Cargo-

2012

⇔ AEO Cargo(2015):0.0h (declaration-permission)

2015

Hours 10

Benefits of Japan’s AEOs: Effects of AEO Importers

Permission

Benefits of Japan’s AEOs: Effects of AEO Importers

0,3

0,3

0,4

0,4

0,4

0,6

0,7

1,8

1,6

1,6

2,3

0 0,5 1 1,5 2 2,5

DeclarationPermission

(Before NACCS)1991

1992

1993

1996

1998

2001

2004

2009

2006

Time Release Study on Imported Air Cargo-

2012

2015 ⇔ AEO Cargo(2015):0.0h (declaration-permission)

Hours 11

• Reduction of Lead time and Cost

• Improving predictability of the logistics of own cargos

• Enhancing the information sharing system

• Improving the accuracy of work

• More efficient internal control

• PR to get a contract

Etc.12

Voice of Japan’s AEOs

AEO Program leads to :

Outline

3. MRA Current Status

13

Mutual Recognition : Current Status of Japan

Date Country

May 2008 New Zealand

June 2009 USA

June 2010 Canada

June 2010 EU

May 2011 Korea

June 2011 Singapore

June 2014 Malaysia

August 2016 Hong Kong

Signed MRAs

14

Outline

4. Challenges

15

• Maintaining and improving the level of security and compliance of AEOs

• Increasing the number of AEOs including SMEs

• Increasing MRA utilization rate

16

Challenges

Outline

5. AEO in Tripartite (JP-CN-KR) Framework

17

Outline

18

AEO Cooperation under TCHM

Collaboration on AEO under TCHM (Tripartite Customs Heads Meeting) among Japan-China-Korea

• MRAs among the three Customs Administrations• Cooperation in Multilateral Fora (WCO, APEC, etc.)

AEO WG under TCHM

• Possible Future Multilateral Collaboration on MRAs

AEO “Action Plan”

Bilateral: Japan-Korea

• Work on Raising the Level of MRA Utilization

Bilateral: Japan-China

• Progress made for Japan-China AEO MRA

Outline

6. Technical Cooperation on AEO

19

20

Contribution to Global AEO Program Development &

MRA Network through TC Programs

• Sharing Japan’s experience & Advice on AEO Operation

- How to establish & develop AEO program - Approval & Monitoring process- Site visit to share operation of AEO Program- Challenge and Resolution- Improvement of AEO Program already established

Past WS : Cambodia, Malaysia, Thailand etc.Forthcoming WS : UEMOA

Thank you!

21