Warmly Congratulate TK Mold (Shenzhen) Co., Ltd. to Become AEO

Warmly congratulate TK Mold (Shenzhen) Co., Ltd. successfully passed the customs examination and officially became an AEO.

AEO is the abbreviation of Authorized Economic Operator. AEO system refers to the institutional arrangement that provides qualified enterprises with customs clearance facilitation measures of their own countries and mutual recognition countries, shares law-abiding and security responsibilities, and guarantees the safety of supply chain and trade facilitation through developing cooperation between customs and enterprises. The background of AEO system mainly has two aspects: one is the global repositioning of security after the 911 event in the United States; the other is the planning and steady progress of credit system construction in China. AEO system finds a balance between security and facilitation, emphasizes the responsibility of enterprises to abide by law independently, and embodies the principle of “facilitation for honesty and law-abiding, and severe punishment for law-breaking and dishonesty”.

In 2014, the General Administration of Customs promulgated the Interim Measures of Customs of the People’s Republic of China for Enterprise Credit Management to replace the original Measures of Customs of the People’s Republic of China for Enterprise Rating Management, marking the official implementation of AEO certification system by China Customs. AEO in China are divided into ACE enterprises and GCE enterprises. Currently, there are 3,239 ACE enterprises in China, and 25,501 GCE enterprises in China, accounting for 1.94% of the registered enterprises in China. In a sense, AEO enterprises are the VIP of the customs and the golden signboard of foreign trade import and export enterprise, and they can enjoy benefits as being “the most convenient at customs, the most preferential in China, and the most recognized in the world”.

The most convenient at customs: GCE enterprises can enjoy prior goods customs clearance, low inspection rate, tax guarantee reduction, etc. provided by the customs, at the same time, on the basis of GCE enterprises, ACE enterprises enjoy enterprise coordinator mechanism in the customs; prior customs clearance after the resumption of trade interruption, tax guarantee exemption, audit and inspection frequency reduction and facilitation measures issued by the directly affiliated customs according to the actual situation of local import and export enterprises.

Domestic preference: In October 2016, 40 central departments jointly signed the Memorandum of Cooperation on the Implementation of Integrity Joint Incentive for Customs ACE Enterprises, in which ACE enterprises can enjoy 49 joint incentive measures, divided into four categories: green channel and priority measures, reduction of random checks and simple procedures.

International recognition: China Customs has achieved AEO mutual recognition with 42 countries (regions) in 15 economies. Customs across the Taiwan Straits also implemented AEO mutual recognition pilot in October 2016. AEO ACE enterprises enjoy international mutual recognition, and can also enjoy relevant facilitation measures for goods clearance in the other country.

AEO system has wide content, high standard and strict requirement, and it is very difficult to pass. The certification system is divided into 31 items in four modules: internal control (mainly including internal training, organizational structure, document review, document storage, import and export activities, internal audit system, quality management, improvement mechanism, information system, data management, information security); financial conditions (mainly including accounting information and comprehensive financial conditions); law-abiding norms (mainly including personnel law-abiding, enterprise law-abiding, standard transmission, tax payment, management requirements, external credit); trade security (mainly including place security, access security, personnel security, business partner security, goods and articles security, container security, means of transport security, crisis management, security training). Enterprises must meet the following three conditions at the same time to pass the certification: 1. All items have no circumstance of completely failing to meet the standard (-2 points); 2. Less than 3 single standard items (indicated by 1, 2 and 3) in standards of internal control and trade security basically meeting the standard (-1 point); 3. The total standard score is above 95 points (inclusive).

From preparing the establishment of TKM Customs AEO Project Team in July 2017 to successfully passing the examination by the customs, we have spent more than 700 days and nights together facing difficulties and trying to solve them. We went through the process of learning standards -- understanding standards -- explaining standards -- applying standards -- meeting standards, and it was not easy all the way. The success cannot be separated from the guidance and support of the senior management, the unremitting efforts and contributions of the project team members, the professional support of the consultant teachers, and the careful guidance of the customs experts. Obtaining AEO certificate is not the end of certification work, but the beginning of a new journey. We will work according to the requirements of a more compliant and safer system, constantly improve the standards according to local conditions, and continuously meet the requirements of AEO certification system.

The next work is to realize the implementation of AEO policy, rather than hanging the certificate on the wall. On the one hand, it is necessary to correctly fill in the customs AEO information in the import and export declaration according to the requirements of the customs, enjoy the preferential measures as fast clearance and low inspection rate, and directly consult the AEO enterprise coordinator to help solve problems; we shall strengthen the publicity to customers, at the same time, indicate AEO number on the destination country customs clearance document provide to customers, so as to enjoy the customs clearance facilitation of the destination country; we shall make full use of AEO certification to exempt customers from other audit certification (such as anti-terrorism certification, trade security audit, etc.); we shall cooperate with and support other departments to apply for evaluation and awards from the government, so as to fully enjoy the preferential policies.

More and more enterprises have realized the value of AEO certification, and many enterprises are eager to try to apply.

From a macro point of view, the cultivation of AEO certification in recent years has achieved very good results. It is a good phenomenon that enterprises are pursuing the joint incentive policy of the General Administration of Customs and even various government departments of the country for AEO enterprises.

However, there are some misunderstandings about AEO certification, which are mainly reflected in:
Misunderstanding I: they believe that it is only required to prepare and submit a set of complete certification application materials to the customs. Guided by this view, they will be keen to find a consulting company to act as a "full agent" and wait for the certificate naturally.
Misunderstanding II: they believe that nothing will be worried about in 3 years at least after obtaining the certificate, and they will not care about relevant work of AEO certification. Guided by this view, many enterprises take passing the certification as the end of AEO certification work.
AEO certification is an effective means to improve competitiveness and better serve the market development.
AEO certification can optimize management, modify the internal work, and help to reduce costs and increase efficiency.
AEO certification is a system engineering, which requires close cooperation of all departments to enhance the cohesion of the company.
AEO certification requires the support of CEO, as a CEO engineering.
AEO is a method, means, process, and serves the enterprise mission that makes customers successful, committed to making TK the world’s leading one-stop injection molding solutions supplier.