PH and China pact on Authorized Economic Operator Program

The Philippines and China pact on Authorized Economic Program (AEO) that offers incentives to traders who collaborate with customs administrations to improve supply chain security. The Agreement will allow both countries to have faster cargo clearance. The Mutual Recognition Arrangement (MRA) for the said partnership was signed during President Marcos’ state visit to China last January 3-5, 2023. 

Bureau of Customs Commissioner Yogi Filemon Ruiz and Chinese Minister of Customs Yu Jianhua signed the agreement on behalf of the Philippines’ President Ferdinand Marcos Jr. and the Republic of China’s President Xi Jinping. 

An AEO is a widely recognized accreditation that confirms a company’s position in the supply chain is secured and reliable, and that all Customs controls and processes are effective and in compliance.

Benefits of the MRA will include: (1) increased facilitation for both domestic and international cargo clearance, (2) priority treatment if the cargo has been chosen for inspection, and (3) accelerated customs cargo clearance in the case of trade disruption. Under the MRA, Level 2 Certified AEO members that will be exporting in China will be afforded trade facilitation benefits as accredited by the Philippine Customs.

Similar incentives for trade facilitation will also be provided by the BOC to exporters to the Philippines recognized as Advanced Certified Enterprises within the parameters of the Enterprise Credit Management Programme of the GACC.  Both countries will develop an implementation plan for the recognition, trade facilitation benefits, and sharing of information before the implementation, six months from the time of signing.

In line with the PBBM administration’s mandate, the Export Development Council Networking Committee on Trade Policies and Procedures Simplification (NCTPPS) will continue to coordinate with the BOC in its mission to enhance trade facilitation, strengthen collaboration with development partners and advance its position internationally. AGPM

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