10-4.
Overview
Once certified, they can receive various benefits.
Learning Points
- AEO Program
- Who Can Obtain the AEO Status?
- Benefits of AEO Certified Exporter
- Benefits of AEO Certified Customs Broker
AEO Program (Authorized Economic Operator)
—パターン１（世界向けに内容を少し変更)
The AEO program is a global customs-related initiative to enhance and streamline international trade.
This program officially recognizes businesses that meet specific criteria, demonstrating their commitment to compliance with:
- Customs regulations and
- Security standards
—パターン2 (オリジナルを採用)
The AEO program is designed to simplify customs procedures for businesses officially recognized by customs. Its primary objectives are:
- To ensure logistics security
- Promote regulatory compliance
- Facilitate smooth international trade transactions
Who Can Obtain the AEO Status?
It applies to the following parties:
- Exporters
- Importers
- Warehouse operators
- Customs brokers
- Carriers/Transportation companies
- Manufacturers
What is Required of AEO?
AEO (Authorized Economic Operator) must comply with legal regulations and implement cargo security management.
Compliance with Regulations
AEO certified companies need to adhere to legal requirements related to customs procedures.
The key is to have the following measures in place:
- Proactively prevent legal violations
- If a violation occurs, swiftly devise measures to prevent recurrence
- Create and manage internal rules and operational procedures effectively
Cargo Security Management
In cargo security management, it’s crucial to have measures in place to prevent theft, replacement, and unauthorized access to the handled cargo. The key point is to ensure the fundamental aspect of logistics—keeping the cargo safe.
Businesses Certified as AEO
While we’ll use examples from Japan, it’s important to note that various countries offer advantages.
AEO Certified Exporter
AEO certified exporters have established security management and compliance systems and are recognized as AEO by customs.
As of April 2022, 232 businesses in Japan have been recognized and certified as AEO for export.
Benefits
These exporters can simplify various customs procedures.
(1) Simplifying Customs Procedures
An exporter with AEO status can declare exports and obtain permission without physically transporting goods to a bonded area.
Typically, goods need to pass through a bonded area to obtain permission. However, it becomes possible to complete the declaration and obtain permission even if the goods are at the exporter’s factory or in transit.
(2) Can Freely Choose the Customs Office for Declaration
Exporters with AEO status can freely choose the customs office for an export declaration.
Typically, for goods located within the jurisdiction of Customs Office A, declarations must be made at Customs Office A. However, with a liberalized declaration, it is possible to make declarations at Customs Office B or other locations instead.
(3) Omission of Change Procedures
Even after obtaining export approval, changes to the vessel name or loading port are common in the shipping industry. However, AEO certified exporters can skip the application for changes in the:
- Vessel name
- Loading port
(4) Simplification of Duty-Free Processing for Returnable Containers
(5) Simplification of Customs Inspection and Examination
The customs document review and cargo X-ray inspections will be simplified.
(6) Application of AEO Mutual Recognition
Inspections and examinations upon arrival are simplified when exporting goods to countries with AEO mutual recognition agreements. There are over 90 pairs of mutually recognized countries worldwide, and Japan has mutual recognition agreements with 13 countries.
New Zealand, US, EU, Canada, South Korea, Singapore, Malaysia, Hong Kong, China, Taiwan, Australia, UK
AEO Certified Customs Broker
AEO Certified customs brokers are companies specializing in customs-related tasks that have obtained recognition as AEO. As of April 2022, 244 businesses have been certified as authorized customs brokers in Japan.
Benefits
(1) Simplification of Customs Procedures
Goods can be exported without entering the bonded area.
Additionally, tax declaration can be carried out after picking up the cargo. This allows for even more prompt and smooth retrieval of the imported goods.
(2) Can Freely Choose the Customs Office for Declaration
This allows the customs broker to choose the location for declaration.
(3) Simplification of Procedures
In Japan, if products made abroad using specific raw materials are reimported within a year of export, tariffs on the equivalent portion of the raw materials can be reduced.
Usually, customs brokers handle this process.
As document preparation and submission are not required for AEO-certified customs brokers, it can lead to a reduction in the time required for customs declaration.
Summary
AEO (Authorized Economic Operator) program globally streamlines customs procedures for entities, including exporters, importers, and customs brokers.
This article introduces the benefits for businesses certified under Japan’s AEO program, but similar advantages exist in other countries. When you engage in trade, also remember these systems.
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