China AEO Program China Customs August 2013 OUTLINE
- Slides: 27
China AEO Program China Customs August 2013
OUTLINE 1 AEO Program Implementation 2 Introduction of MCME 3 AEO Mutual Recognition 4 AEO Benefits Implementation
AEO Program Implementation l In June 2005, China Customs signed the Letter of Intent to implement the WCO SAFE Framework 1
1 AEO Program Implementation Transfer the AEO Program into National Legislation 1 Chinese national regulation AEO Concept Essential Facilitation Verification Security Standard requirement procedure measures
1 AEO Program Implementation MCME Measures on Classified Management of Enterprises AEO
1 AEO Program Implementation l 1. 1 Applicant of the AEO program l Current scopes: consignees and consignors, importers and exporters, manufactures and the processing trade enterprises, bonded warehouse keepers, forwarders, brokers l Future scopes: carriers, seaport and airport operators, and the enterprises who involved in international trade supply chain
1 AEO Program Implementation l 1. 2 Enterprise Classification Class AA: the best class, AEO of China Customs Class A: the better class, preliminary AEO Class B: normal class C: the worse class Class D: the worst class
AEO Program Implementation Development of classification status AA 2008 2009 2010 2011 2012 805 1460 1704 2094 2337 (1447 / 13) (1664 / 40) (2024 / 70) (2161/ 176) (consignees & consigners / (805 / 0) Customs brokers) A 15051 21876 22797 25194 28426 B 410034 432560 444171 474174 508730 C 818 1180 910 858 958 D 340 384 202 178 254
1 l 1. 3 AEO Program Implementation Customs-Enterprise Cooperation l Strengthen cooperation l Exchange information regularly l Keep operational contacts
2 Introduction of MCME l MCME: Measures of the General Administration of Customs of the People’s Republic of China on Classified Management of Enterprises
2 Introduction of MCME 2. 1 Application criteria for Class AA compliance with Customs law and requirements accuracy of declarations internal control procedures Criteria financial solvency records of trade and transportation Security compliance with other government agencies
2 Introduction of MCME 2. 2 Facilitation measures for Class AA B specific customs priority to clearance formalities A C officer professional declaration training and job assessments Facilitation measures E D priority to handling urgent customs clearance formalities lower customs inspection rate
2 Introduction of MCME 2. 3 Procedure of class AA authorization Document submission Local Customs Office → Regional Customs → GACC Verification of class AA enterprises u u u verifying enterprise’s Integrity evaluating Compliance ability supervising internal operational management and trade security
2 Introduction of MCME 2. 4 Sustainable management to class AA Enterprises Assessment Report on Business Operating and Management Status every year u Audit Report every year u Business Form on the Import and Export every half a year u Revalidation every 3 years. u
33 AEO Mutual Recognition China and Singapore AEO MRA signed on June 2012
33 AEO Mutual Recognition China and Korea AEO MRA signed on June 2013
33 AEO Mutual Recognition China and the European Union China-EU Smart and Security Trade Lanes Pilot (SSTL) AEO Mutual Recognition
33 AEO Mutual Recognition China and US C-TPAT Joint Validtaion AEO Mutual Recognition
33 AEO Mutual Recognition China and Japan AEO Mutual recognition Comparison of AEO program
33 AEO Mutual Recognition China and Taipei, Hongkong AEO Mutual recognition Comparison of AEO program and Observation
4 AEO Benefits Implementation Contents 1. Overview on Customs Clearance Procedure 2. Implementation AEO benefits l l l Registration of AEO information Identification AEO status and grant benefits by H 2000 system 3. Circular to the trades
4 AEO Benefits Implementation
4 AEO Benefits Implementation Registration of AEO information --Registration local companies classification in 5 groups: AA, A, B, C, D l Company code(10 numbers): XXXXX (connected with company’s classification) l l l l --Receive AEOs information from the Counterpart’s AEO code: AEO XX XXXXXXXX --Storage of Information Data base Companies Registration System Companies code Countrepart’s AEO code H 2000 system (cargo declaration system)
4 AEO Benefits Implementation l l l l Identification AEO status and grant benefits by H 2000 system China Importation procedure: Chinese Importer’s code, Agent’s code Declaring agent H 2000 system Data base Counterpart’s Exporter AEO code Counterpart’s exporter AEO code will be input to the Remark volume of the Import Declaration Form. H 2000 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.
4 AEO Benefits Implementation l l l A circular will be release to the trade Contents: Importing from a Counterpart: 1. 2. 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 H 2000, the Chinese importer or its declaring agent should input the AEO code given by the Counterpart to the Remark volume, i. e. “AEOUKXXXXXXXX”
4 AEO Benefits Implementation l Illustration of procedures to enjoy Mutual Recognition benefits: Counterpart’s AEO Exporter Chinese Importer AEOKRXXXXXXXX l H 2000 Remark field
THANK YOU FOR YOUR ATTENTION Shao Weijian China Customs E mail: shaoweijian@customs. gov. cn Tel: +86 -10 -65195382
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