China-Japan ease exports with new customs agreement
China and Japan on Friday signed a customs agreement on mutual Authorized Economic Operator (AEO) status, among efforts by the two neighbours to further boost bilateral trade and economic cooperation.
The agreement was signed by officials from the Chinese General Administration of Customs (GAC) and Japanese Customs and Tariff Bureau, and was witnessed by Chinese Premier Li Keqiang and visiting Japanese Prime Minister Shinzo Abe in Beijing, the GAC’s website said on Saturday.
Under the agreement, companies that obtain AEO status in the two countries will enjoy simplified customs procedures, such as reduced examination or prioritized clearance, when they export products to the other country.
After the agreement becomes operational, the customs clearance time for companies on both sides is expected to be cut by 30 to 50 percent, which will reduce logistics costs and increase their international competitiveness.
According to the World Customs Organization (WCO), an AEO is an organization or company involved in the international movement of goods that has been certified by, or on behalf of, a national customs administration and complies with WCO or equivalent supply chain security standards.
Japan is China’s third largest trade partner, according to data provided by GAC. In the first nine months of 2018, bilateral trade volume between China and Japan reached $243.7 billion, an increase of 10.7 percent year on year.
There are 73,300 Chinese companies doing export business to Japan, and 1,644 of them have been recognized with a advanced AEO status. More than 23.5 percent of Japan’s imports are from these companies, according to GAC data.
China has signed mutual AEO agreements with nine economies and 36 countries and regions including Singapore, South Korea, the European Union, Hong Kong and Japan. China’s exports to these countries and regions account for 43.33 percent of its exports.
Source: GLOBAL TIMES