Session 5. Mutual Recognition Agreements / Arrangements, MRAs, of the AEOs
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1 Session 5 Mutual Recognition Agreements / Arrangements, MRAs, of the AEOs 58
2 Quote1 by Prof. Yao-hua Tan, TU Delft, the Netherlands. Say that your company works in food export of for example rice or shrimps Next to the Dutch Customs administration, the Dutch Food Inspection agency is involved in the import process. In today s situation the two administrations are not fully coordinated, and thus it can take an extra hours with food inspections after customs has cleared a shipment. 59
3 Quote2 by Prof. Yao-hua Tan, TU Delft, the Netherlands. If the Thai exporter is AEO and EU importer is AEO and transport operators and customs brokers are AEO and, Thailand and EU have a MRA in place - then, Dutch authorities know in advance who is shipping; they can trust the operators; they can rely on the data quality; they know that shipment was secured during transport; and, very importantly, they can perform risk analysis well in advance 60
4 DG TAXUD on MRA concept Where one customs administration recognises the AEO status granted by another country Mutual Recognition of validation findings and AEO authorisations Where one customs administration recognises the customs security standards, risk assessment controls and control results of another country Reciprocity between customs organisations to avoid duplication of interventions 61
5 WCO guidance on MRAs Prospective partners are signatory to the SAFE Framework with intent to implement both pillars and have a Customs-to-Business programme along with the following elements of the Customs-to-Customs pillar : A system of automated risk management. Ability to receive advance electronic information on cargo for risk analysis screening purposes. Ability to examine high risk cargo using modern technology before loading for export. Willingness to agree to conduct pre-load examinations upon reasonable request from the other partner(s). Legal ability, willingness and capacity to share information on risk. 62
6 MRA global situation According to the WCO (Compendium on Authorized Economic Operator Programmes, 2012) as of June 2012, there were 19 MRAs that had been concluded and 10 AEO MRA negotiations on-going. The number of completed MRAs has since increased (at least) to 21 with the additions of China and Singapore (March 2013) China and Korea (September 2013) 63
7 Countries / Customs Unions active on MRAs Andora Canada China EU India Israel Japan Jordan Korea Malaysia Norway New Zealand San Marino Singapore South Africa Switzerland USA ANNEX 5 contains a detailed country-mra -matrix 64
8 Recent case: China Singapore AEO MRA The MRA signed between China and Singapore, and which became effective in March 2013, indicates also the importance of identifying corresponding AEOs to the Chinese and Singaporean customs authorities respectively. The Customs of the People s Republic of China now recognize STP-Plus companies accredited by Singapore Customs as Singapore s Authorized Economic Operators, and Singapore Customs will recognise enterprises of Class AA accredited by the People s Republic of China as China s Authorized Economic Operators. Singapore Customs and the Guangzhou Customs District of China previously and successfully concluded a MRA pilot to test and fine-tune the procedures before full implementation began in March The MRA has consequently been expanded to cover all Customs Districts of China. Source: Website of Singapore Customs (SC): 65
9 Source: Korea AEO MRA: A Structured Approach to Mutual Recognition for Authorized Economic Operator (AEO) Programmes; 66 Kiok Hyung, Programme Advisor, KCS; WCO AEO Global Conference - Seoul, Korea, April 2012
10 Typical bottlenecks in MRA negotiations No standardized approach Different benefits Limited time and resources Different focus (security vs. revenue collection) Different ways of accreditation of AEOs Different requirements for AEO data exchange Source: This list is produced by CBRA, from WCO Korea AEO 2012 conference presentations 67
11 Detailed comparison of EU vs. Thai AEOs Comparing the legislation Comparing the conditions and requirements for authorisation Comparing the authorisation process Comparing the monitoring, revocation and suspension processes Comparing the benefits >>> In general terms: the two are well-aligned 68
12 Some AEO differences EU versus Thailand Legal Requirements to apply for AEO status Whilst length of being in business and profitable does not in itself prove a company can be trusted in the future, it may be seen as good an indicator as those that are used by the EU. The EU AEO certification covers a wider array of economic operators (i.e. those involved in activities covered by customs legislation) in the supply chain; whereas the Thai system is only for importers and exporters and their customs agents. 69
13 Some AEO differences EU versus Thailand Identification of AEOs: One could explore whether there is any possibility for aligning the Thai AEO reference with the EORI used by the EU. Alternatively identify a way to capture the identity of EU AEOs exporting goods to Thailand and Thai AEOs exporting goods to the EU. 70
14 Some AEO differences EU versus Thailand Security of Premises: risk assessment and measures No obvious gaps exist between the EU and Thai requirements. However, some attention could be paid to gaps covering such items as: back-up power for lighting procedures for trucks arriving at premises and the coordination between transport departments and goods reception offices and personnel intrusion testing 71
15 Some AEO differences EU versus Thailand IT and information security: Given the increasing threat to electronic data and IT software and hardware security in particular, it might be advisable for more guidance to be provided for protecting this most vital of business systems. 72
16 Some AEO differences EU versus Thailand On cargo security, it might be helpful to provide further guidance on measures such as: checking for uniform marking of goods awareness of additional security requirements of customer dealing with anomalies and cargo returns restricting knowledge of cargo destination tamper evidence identifying different customs status of goods security of goods during the production (if appropriate) 73
17 Summary of good practices in preparing for MRA negotiations with other countries global experiences Ensure high level commitment from government and customs administration Allocate early on adequate human and financial resources for all stages of the MRA negotiation process Review your current status with the WCO SAFE requirements and based on the findings, take necessary improvement actions Prepare an overall legal framework for the targeted MRA Prepare trader identification numbers in a suitable format with your MRA negotiating partner Prepare automated data exchange schema matching that of your MRA partner Prepare two-way on-site visits with your MRA partner, with all necessary details covered well in advance of the physical trips.. and off you go with the actual negotiations 74
18 END 75
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