China and Uganda signed a customs agreement on mutual Authorized Economic Operator (AEO) status on May 25. This was the first arrangement on AEO mutual recognition signed between China and Africa countries. Before that, Changsha Customs established a leadership team to assist the General Administration of Customs (GAC) in carrying out China-Africa AEO mutual recognition.

The AEO system, initiated by the World Customs Organization, aims at facilitating customs clearance for enterprises through the authentication by customs agencies of enterprises with a high level of legal compliance, credit status and safety. Companies that obtain the AEO status will enjoy simplified customs procedures in their own country and the mutual recognition country.

Based on the China-Africa Economic and Trade Expo, Changsha Customs plays the role of a bridge to timely report updates and local needs, and establish an exchange mechanism with local governments. At present Changsha Customs has promoted AEO mutual recognition between GAC and more African countries. It has sent letters to 10 African countries’ embassies in China that have established the AEO system, such as Egypt and Angola, through the Hunan Provincial Department of Commerce. The move aimed to learn about these countries’ cooperation willingness. Changsha Customs has established communication channels with 11 African countries that are building the AEO system, including Botswana and Comoros. 

China-Uganda AEO mutual recognition will help shorten customs clearance time of AEO enterprises in the two countries, reduce trade costs of enterprise ports, insurance, and logistics to the greatest extent possible, and effectively enhance international competitiveness. Hunan and Uganda have great potential in foreign trade. From January to April this year, total trade value between Hunan and Uganda was 71.4 million yuan, and nearly 60% of exports were wig products.

This article is from Hunan Provincial Government www.enghunan.gov.cn.

Translator: Xiao Juan

Chinese source: hunan.gov.cn