On the 16th of May 2014 an agreement was signed between the European Union and the Popular Republic of China having the purpose to mutually recognize the programs of Authorized Economic Operator (AEO).
As soon as this agreement is implemented and in force, it will be of top importance to strengthen the supply chain and to make the exchanges easier for the “trusted traders”.
Thanks to this free trade agreement and this mutual recognition, the parties are sending an important message against the protectionism carried out by many countries.
The purpose of AEO certifications is to create a global and “safe” supply chain through operators in which customs have confidence in order to speed the international exchanges and decrease costs. In addition, the presence of AEO operators will allow the customs to concentrate more on those sectors with high risk profile.
The existence of recognition gives the certified operator of the country of export the status of “safe” operator and this also warranties the possibility to use facilities like quicker controls and simpler procedures when the authorities of the other country clear goods.