At a recent meeting of the Border Commercial Consultative Committee (BCCC) Trusted Traders Programs Subcommittee at which the Canada Border Services Agency explained their involvement in the Authorized Economic Operator (AEO) Regional Strategy in the Americas and Caribbean Region. For details refer to the CBSA’s strategy document. Background: At the XV Regional Conference of Customs [...]
At a recent meeting of the Border Commercial Consultative Committee (BCCC) Trusted Traders Programs Subcommittee at which the Canada Border Services Agency explained their involvement in the Authorized Economic Operator (AEO) Regional Strategy in the Americas and Caribbean Region. For details refer to the CBSA’s strategy document.
Background:
At the XV Regional Conference of Customs Directors General (RCCDG) meeting held in April, 2012, the CBSA committed to participate in the AEO Regional Strategy Steering Committee Workshops via the Uruguay Resolution is an effort by the Americas and Caribbean region to develop a strategy, with the private sector, for the implementation of AEO programs based on the WCO SAFE Framework with a goal to pave the way to achieve Mutual Recognition Arrangements.
The Strategy seeks to:
• Encourage the implementation of AEO programs in the Region.
• Strengthen AEO programs already established in the Region.
• Increase the number of certified AEO operators in the Region.
• Establish and/or strengthen partnerships with the private sector and other government agencies and international organizations in the development of AEO programs.
• Promote MRA negotiations.
The AEO Regional Strategy is a step towards establishing a broader network of secure trade partners and managing risk away from the border.
As a member of the Steering Committee, Canada has committed to consulting with industry on the text and concepts outlined in the AEO Regional Strategy. Although Canada already has a well-established AEO program, countries in the region are looking to Canada as leader in AEO development to help guide the way for those wishing to improve upon or develop AEO programs. It is the responsibility of the CBSA to ensure that Canada’s public and private sector interests are represented and that the strategy aligns with the CBSA’s Trusted Traders program objectives and requirements for entering into MRAs.
Following a recent meeting of heads of state in Washington, the U.S. and Japan issued a joint statement pledging closer cooperation on ensuring the security of global supply chains. Stating that “there is an urgent need to better address manmade and natural disruptions which could adversely impact our security, economic prosperity, and ways of life” [...]
Following a recent meeting of heads of state in Washington, the U.S. and Japan issued a joint statement pledging closer cooperation on ensuring the security of global supply chains. Stating that “there is an urgent need to better address manmade and natural disruptions which could adversely impact our security, economic prosperity, and ways of life” while also facilitating trade, the two countries said they intend to take the following bilateral actions.
• enhance the trade facilitation benefits provided to members of the Customs-Trade Partnership Against Terrorism and Japan’s authorized economic operator program
• accelerate discussions on an air cargo security mutual recognition arrangement
• coordinate capacity•building in the Asia•Pacific region to strengthen border, port, maritime and aviation security, within existing resources
• support the development and deployment of new technologies to enhance global supply chain security
• pursue joint counterproliferation investigations through relevant law enforcement agencies
• promote dialogue, information exchange and sharing of best practices between public and private sectors
The joint statement also commits the U.S. and Japan to multilateral efforts within the World Customs Organization, the International Civil Aviation Organization, the International Maritime Organization, the Universal Postal Union and the Asia-Pacific Economic Cooperation forum on global supply chain issues, including the following.
• supporting the development and maintenance of risk management guidelines
• assisting in the development of robust global pre•departure information requirements in alignment with the discussions on the WCO SAFE Framework of Standards
• developing common definitions, standards and recommended practices for high-risk air cargo
• actively reporting shipping information and intelligence through the WCO’s Global Shield program and facilitating the expansion of regional participation in this program
• advancing the development of AEO programs consistent with the WCO SAFE Framework of Standards
• guiding the establishment of international standards for trade recovery collaboration and information requirements
The EU and the United States of America formally agreed to recognise each other’s safe traders, thereby allowing these companies to benefit from faster controls and reduced administration for customs clearance, as a result of a mutual recognition decision signed by both parties. EU and U.S. certified trusted traders will enjoy lower costs, simplified procedures [...]
The EU and the United States of America formally agreed to recognise each other’s safe traders, thereby allowing these companies to benefit from faster controls and reduced administration for customs clearance, as a result of a mutual recognition decision signed by both parties. EU and U.S. certified trusted traders will enjoy lower 
costs, simplified procedures and greater predictability in their transatlantic activities. Mutual recognition will also improve security on imports and exports, by enabling customs authorities to focus their attention on real risk areas.
What this means in practical terms is that the U.S.-EU Mutual Recognition Decision officially recognizes the compatibility of the U.S. Customs-Trade Partnership Against Terrorism (C-TPAT) and the EU’s Authorized Economic Operator (AEO) program. USCIB has long encouraged an agreement between the U.S. and EU that would recognize compatibility between the U.S. and EU cargo security programs.
There are currently some five thousand companies approved as Authorised Economic Operators (AEOs) in the EU – a number which is growing year on year. The EU and USA are strategic trade partners, with imports and exports accounting for almost €500 billion in 2011. The joint decision will start to be implemented from 1 July 2012.
Commissioner Semeta said: “[The] agreement is a major step forward in the EU-U.S. trade relationship. At a time when businesses need all the support they can get, this will make life easier and cheaper for many transatlantic traders. It will also help to ensure that security checks on traded goods are more focussed and effective, further improving the protection that customs provides for each and every citizen.”
Vice President of Government and Trade Relations with HanesBrand, Inc., and chair of USCIB’s Customs and Trade Facilitation Committee Jerry Cook said: “We congratulate CBP and the EU Taxation and Customs Union Directorate for delivering on the commitment of a mutual recognition agreement, and for continuing to build working partnerships of responsible industry leaders, governments and citizens.”
Expressing this sentiment, U.S. Ambassador to the EU William Kennard tweeted that the signing of the accord was an “Important step toward securing, facilitating trade.”
Mutual recognition of trade partnership programs prevents the proliferation of incompatible standards, and promotes harmonisation of customs practices and procedures worldwide.
Source: New Europe Online
India’s Central Board of Excise and Customs (CBEC) last month announced a new ‘Authorised Economic Operator’ (AEO) program, with a view to give AEO-certified operators preferential treatment in terms of less Customs examination, relaxed procedural requirements, etc, subject to the operators maintaining prescribed security standards and compliance requirements. The voluntary scheme is available to importers, [...]
India’s Central Board of Excise and Customs (CBEC) last month announced a new ‘Authorised Economic Operator’ (AEO) program, with a view to give AEO-certified operators preferential treatment in terms of less Customs examination, relaxed procedural requirements, etc, subject to the operators maintaining prescribed security standards and compliance requirements.
The voluntary scheme is available to importers, exporters, warehouse owners, custom house agents, cargo forwarders, carriers, port operators and couriers, among others in the trade community. Companies can obtain an internationally recognized quality mark, which will indicate their secure role in the international supply chain and that their Customs procedures are efficient and compliant. Thereafter, they will be considered ‘secure’ traders and reliable trading partners.
The AEO program has been developed pursuant to guidelines of the World Customs Organization’s (WCO) adoption of SAFE FoS (Framework of Standard) in 2005. The objective was ensuring security in the global supply chain from the point of origin i.e., the point of export to the point of import in the receiving country, keeping in view national requirements of respective administrations. SAFE seeks to establish standards that provide supply chain security and facilitation at a global level to promote certainty and predictability, enable integrated supply chain management for all modes of transport, enhance the role, functions and capabilities of Customs to meet the challenges and opportunities of the 21st century, strengthen cooperation between Customs administrations to improve their capability to detect high-risk consignments, strengthen Customs/Business cooperation and promote the seamless movement of goods through secure international trade supply chains. Continue reading »
Outdated compliance requirements are too costly and inefficient for today’s global markets A shipper trade facilitation group claims that current customs and trade compliance requirements are holding back international commerce and putting huge strains on the national authorities controlling them. The whole system is costly, inefficient and unnecessarily bureaucratic, and needs to be fundamentally changed. [...]
Outdated compliance requirements are too costly and inefficient for today’s global markets
A shipper trade facilitation group claims that current customs and trade compliance requirements are holding back international commerce and putting huge strains on the national authorities controlling them. The whole system is costly, inefficient and unnecessarily bureaucratic, and needs to be fundamentally changed. Traders who can be trusted should be given the right to control their own trade compliance. So says a group of representatives from private, internationally trading companies and U.K. public stakeholders known collectively as SAGE.
Chairman of SAGE, Mark Corby, said: “There is a growing number of trade compliance and facilitation managers from companies engaged in large scale international trade who are frustrated by the increasing costs and complexity of trade compliance requirements. The nature of our businesses and the world trading environment requires a totally new approach. That’s what our group is all about – opening up the debate to some radical new thinking that fundamentally changes the way we look at controlling international trade.”
