1. China AEO Program
China Customs
August 2013

2. OUTLINE Introduction of MCME AEO Mutual Recognition1
AEO Program Implementation 2
Introduction of MCME 3
AEO Mutual Recognition 4
AEO Benefits Implementation

3. AEO Program Implementation
In June 2005, China Customs signed the Letter of Intent to implement the WCO SAFE Framework 1

4. Chinese national regulation1
AEO Program Implementation
Transfer the AEO Program into National Legislation 1
Chinese national regulation
AEO
Essential
requirement
Facilitation
measures
Verification
procedure
Security
Concept
Standard

5. AEO AEO Program Implementation 1
MCME
Measures on Classified Management of Enterprises
AEO

6. 1.1 Applicant of the AEO program
AEO Program Implementation 1
1.1 Applicant of the AEO program
Current scopes: consignees and consignors, importers and exporters, manufactures and the processing trade enterprises, bonded warehouse keepers, forwarders, brokers
Future scopes: carriers, seaport and airport operators, and the enterprises who involved in international trade supply chain

7. 1 1.2 Enterprise Classification AEO Program Implementation
Class AA: the best class, AEO of China Customs
Class A: the better class, preliminary AEO
Class B: normal class
Class C: the worse class
Class D: the worst class

8. Development of classification status
AEO Program Implementation
2008
2009
2010
2011
2012 AA
(consignees & consigners / Customs brokers)
805
(805 / 0)
1460
(1447 / 13)
1704
(1664 / 40)
2094
(2024 / 70)
2337
(2161/
176) A
15051
21876
22797
25194
28426 B
410034
432560
444171
474174
508730 C
818
1180
910
858
958 D
340
384
202
178
254

9. 1.3 Customs-Enterprise Cooperation Strengthen cooperation
AEO Program Implementation
1.3 Customs-Enterprise Cooperation
Strengthen cooperation
Exchange information regularly
Keep operational contacts

10. 2
Introduction of MCME
MCME: Measures of the General Administration of Customs of the People’s Republic of China on Classified Management of Enterprises

11. Introduction of MCME 2.1 Application criteria for Class AA Criteria 2
compliance with Customs
law and requirements
internal control procedures
accuracy of declarations
Criteria
records of trade and
transportation
financial solvency
Security
compliance with other
government agencies

12. specific customs officer2
Introduction of MCME
2.2 Facilitation measures for Class AA
Facilitation
measures B E C D A
specific customs officer
priority to clearance formalities
priority to handling urgent customs clearance formalities
professional declaration training and job assessments
lower customs inspection rate

13. Introduction of MCME 2.3 Procedure of class AA authorization 2
Document submission
Local Customs Office → Regional Customs → GACC
Verification of class AA enterprises
verifying enterprise’s Integrity
evaluating Compliance ability
supervising internal operational management and
trade security

14. 2
Introduction of MCME
2.4 Sustainable management to class AA Enterprises
Assessment Report on Business Operating and Management Status every year
Audit Report every year
Business Form on the Import and Export every half a year
Revalidation every 3 years.

15. China and Singapore AEO MRA signed on June 2012 AEO Mutual Recognition3
AEO Mutual Recognition 3
China and Singapore
AEO MRA signed on June 2012

16. 3
AEO Mutual Recognition 3
China and Korea
AEO MRA signed on June 2013

17. China and the European Union3
AEO Mutual Recognition 3
China and the European Union
China-EU Smart and Security Trade Lanes Pilot (SSTL)
AEO Mutual Recognition

18. China and US C-TPAT Joint Validtaion AEO Mutual Recognition3
AEO Mutual Recognition 3
China and US
C-TPAT Joint Validtaion
AEO Mutual Recognition

19. AEO Mutual recognition Comparison of AEO program3
AEO Mutual Recognition 3
China and Japan
AEO Mutual recognition
Comparison of AEO program

20. China and Taipei, Hongkong AEO Mutual recognition 3
AEO Mutual Recognition 3
China and Taipei, Hongkong
AEO Mutual recognition
Comparison of AEO program and Observation

21. 4 AEO Benefits Implementation
Contents
Overview on Customs Clearance Procedure
Implementation AEO benefits
Registration of AEO information
Identification AEO status and grant benefits by H2000 system
3. Circular to the trades

22. 4 AEO Benefits Implementation

23. 4 AEO Benefits Implementation
Registration of AEO information
--Registration local companies classification in 5 groups: AA, A, B,C,D
Company code(10 numbers): XXXXXXXXXX (connected with company’s classification)
--Receive AEOs information from the Counterpart
Counterpart’s AEO code: AEO XX XXXXXXXXXXXXXXX
--Storage of Information
Companies code
Countrepart’s AEO code
Data base Companies Registration System
H2000 system (cargo declaration system)

24. 4 AEO Benefits Implementation
Identification AEO status and grant benefits by H2000 system
China Importation procedure:
Chinese Importer’s code, Agent’s code
Counterpart’s Exporter AEO code
Counterpart’s exporter AEO code will be input to the Remark volume of the Import Declaration Form.
H2000 system will identify the status of the Chinese importer’s status, agent’s status and the counterpart’s status by examine their code. And grants benefits of lowering risk, priority treatment, expedited processing and release of the shipments where the AEO is involved.
Declaring agent
H2000 system
Data base

25. 4 AEO Benefits Implementation
A circular will be release to the trade
Contents:
Importing from a Counterpart:
For imports from a Counterpart AEO exporter, the Chinese Importer may receive a Counterpart’s AEO code from the Counterpart AEO exporter. Alternatively, the Chinese importer may approach the Japan AEO exporter for the code. The counterpart AEO code will have alphanumeric characters.
When making the import declaration in H2000, the Chinese importer or its declaring agent should input the AEO code given by the Counterpart to the Remark volume, i.e. “AEOUKXXXXXXXXXXXXXXX”

26. 4 AEO Benefits Implementation
Illustration of procedures to enjoy Mutual Recognition benefits:
Counterpart’s AEO Exporter
Chinese Importer
AEOKRXXXXXXXXXXXXXXX
H2000 Remark field

27. THANK YOU FOR YOUR ATTENTION
Shao Weijian
China Customs
Tel: