MANILA – The Philippines and China recently signed an agreement that will secure and facilitate trade by providing incentives to traders working jointly with customs administrations to improve supply chain security.
The Bureau of Customs (BOC) and the General Administration of Customs of the People’s Republic of China on the Authorized Economic Operator (AEO) Program signed the Mutual Recognition Arrangement (MRA) during the state visit of President Ferdinand R. Marcos Jr. to China from Jan. 3 to 5, 2023.
In a statement, the Bureau said MRAs serve as a platform for AEO programs to provide additional benefits to their members through international recognition with partner countries.
Generally, MRA benefits include a higher level of facilitation during cargo clearance, domestic and overseas; priority treatment if the cargo has been selected for inspection; and expedited customs cargo clearance in the event of trade disruption.
AEO companies would thus enjoy cost savings due to better predictability of cargo movement.
Under the MRA, Level 2 Certified AEO members accredited by the BOC exporting to China will be afforded trade facilitation benefits.
Similarly, exporters to the Philippines accredited as Advanced Certified Enterprises will be afforded trade facilitation benefits by the BOC.
The parties will develop an implementation plan for the recognition, trade facilitation benefits, and exchange of information before its implementation six months from the signing. (PNA)