China releases data on AEO system for stabilizing foreign trade
2020-06-03 08:50:55 Belt and Road Portal
China’s top customs authority has released new data on its Authorized Economic Operator credit system to enhance the nation’s foreign trade and strengthen credit supervision over enterprises.
China's top customs authority has released new data on its Authorized Economic Operator (AEO) credit system, which the authority is employing to enhance the country's foreign trade and strengthen credit supervision over enterprises.
The AEO system, initiated by the World Customs Organization, aims at facilitating customs clearance through the authentication by customs of trade firms with a high level of law compliance, credit status and safety.
The new data from the General Administration of Customs (GAC) shows that, as of the end of May, 3,236 advanced certified enterprises had been identified by the GAC under the AEO system, while the number of discredited firms totaled 6,788.
A low credit level can lead to a higher inspection rate, which increases the costs for those enterprises. In 2019, the average inspection rate for advanced certified enterprises stood at 0.57 percent, with that for discredited firms reaching 84.76 percent.
China has signed mutual AEO agreements with 42 countries and regions, including Singapore, the Republic of Korea, the European Union, Switzerland and New Zealand, according to the GAC.
The value of China's exports and imports with these countries and regions has accounted over half of the country's total trade value.