Recently, a significant milestone was achieved with the formal signing of the mutual recognition framework for Authorized Economic Operators (AEO) between China and Thailand. This agreement signifies an expansion of the customs AEO international mutual recognition community. The AEO certification system has become increasingly crucial as a fundamental tool for the Chinese customs authorities, aimed at bolstering the credit system while simultaneously promoting trade security and facilitation.

Among the provinces in China, Guangdong stands out as a hub for private enterprises engaged in foreign trade. According to statistics from the Guangdong branch of the General Administration of Customs, the province’s private enterprises are projected to record an impressive import and export total of 5.8 trillion yuan in 2024. This figure represents a year-on-year growth of 15.2%, accounting for a staggering 63.6% of Guangdong's overall foreign trade volume during the same period. It is clear that these private enterprises have emerged as the backbone of foreign trade activities, playing a significant role in driving the high-quality development of the Guangdong-Hong Kong-Macao Greater Bay Area.

With the signing of the China-Thailand AEO mutual recognition agreement, private foreign trade companies are set to benefit significantly. As stated by Zhong Jianfeng, the deputy director of the Enterprise Management and Inspection Division of Guangzhou Customs, the implementation of this mutual recognition arrangement will facilitate smoother customs clearance for Chinese exports such as machinery, electronics, textiles, and garments entering Thailand. Conversely, products unique to Thailand, including fruits, rice, and rubber, will also enjoy faster entry into the Chinese market. This mutual recognition doesn't just aim at reducing operating costs and enhancing efficiency for AEO enterprises, but it also broadens the choices available for consumers in both countries.

AEO-certified enterprises enjoy a unique dual advantage; they benefit from the 'most convenient domestic processes' and the 'highest international recognition' accorded by customs. Zhang Chao, the director of the Inspection Department at the Guangdong Customs, noted that AEO enterprises, constituting merely 1.38% of the total foreign trade enterprises in the province, have contributed a remarkable 43.9% of Guangdong's foreign trade volume for 2024. Additionally, private AEO enterprises alone accounted for an impressive 2 trillion yuan in import-export value, which makes up 22.34% of the total, thereby significantly enhancing the international competitiveness of Guangdong's enterprises.

In recent years, customs authorities have tirelessly introduced measures aimed at alleviating burdens and increasing efficiency for private enterprises engaged in cross-border trade. For 2024, the customs is actively responding to the demands of AEO enterprises, rolling out several facilitation measures built upon existing management protocols. Furthermore, the customs authority continues to leverage its AEO nurturing and training base, which acts as an incubator for enhancing corporate credit, helping more high-quality private enterprises obtain an international trade 'green pass' and unlocking the benefits of the AEO system. These initiatives are crucial for bolstering the resilience of supply chains and industrial chains.

Take for instance Jiangyin Huaxin Precision Technology Co., Ltd., a national-level "specialized, refined, distinctive, and innovative" enterprise. Within their provincial-level intelligent workshop, workers are currently producing a batch of new energy drive motor cores destined for Germany. According to Lu Zi, the company's customs compliance manager, the ability to secure these German client orders without exaggeration stems from their possession of the AEO certification. Enhanced internal control systems, expedited customs clearance efficiency, and reduced trade costs have substantially boosted their international competitiveness. Lu also emphasized that the local customs authorities played a pivotal role in guiding them through the AEO certification process. Upon receiving the company’s AEO certification application, the Jiangyin Customs immediately organized personnel to provide supportive training, developing targeted nurturing plans that focused on the individual characteristics of the company.

Thanks to the various facilitation measures enacted by customs, AEO enterprises have exhibited remarkable dynamism, particularly in their import operations. The Guangdong Customs, along with other customs offices in the province, has focused on deepening credit management and targeting nurturing efforts. By the end of 2024, over 2,000 AEO enterprises were cultivated within the province, accounting for about one-third of the national total. Notably, private AEO enterprises make up about 40% of this figure, encompassing major private foreign trade firms in Guangdong.

Shenzhen-based BYD Precision Manufacturing Co., Ltd., a leading private enterprise, reported that their annual import and export volume approaches 100 billion yuan. The AEO certification has permitted the company to take advantage of numerous customs facilitation policies, significantly boosting their clearance speed. The company's customs officer stated, “With our ability to procure materials early and schedule production in advance, we can now streamline our production plans and ship goods promptly, flexibly and efficiently meeting customer needs.” The influence of AEO mutual recognition states or regions empowers them to attract new clients, enhancing their market presence.

For creditworthy AEO enterprises, customs is stepping up efforts to implement exclusive "benefits" such as priority arrangements for fast clearance, priority inspections and sampling, and exclusive local checks. Furthermore, the customs authorities are extending credit cultivation services to companies within AEO enterprise groups and entities along the upstream and downstream of the supply chain. In a bid to bolster collaboration, the customs is also encouraging personalized joint incentives between local governments and their respective customs offices, enhancing the perceived benefits for enterprises.

According to Lin Shaobin, head of the General Administration of Customs Comprehensive Business Division, the customs will advance the synergy between existing policies and new initiatives, broaden the scope of benefits enjoyed by AEO-certified enterprises, and further enhance the implementation of facilitation measures. The overarching goal is to upgrade benefits for high-level certified enterprises while simultaneously driving credit enhancements, efficiency management improvements, and quality development to invigorate the foreign trade vitality and growth momentum of private enterprises.