Authorized Economic Operators (AEO) system in Taiwan has been implemented since December 2009 to grant certified supply chain operators with AEO status and related benefits of customs clearance. This year, 2019, marks its 10th anniversary, a milestone for the implementation of this significant system that enhances supply chain security and facilitation. As of today, 766 AEOs have been granted, including 402 General AEOs (AEOG) and 364 Security and Safety AEOs (AEOS), whose consolidated import/export value accounts for 47% of total trade volume of our country. To maximize the advantages of AEO program, Taiwan already signed AEO Mutual Recognition Arrangements (MRAs) with the United States, Singapore, Israel, Korea, Australia, Japan, and India over the past decade. Notably, the MRAs that Taiwan signed with Japan and Australia came into effect on May 22 and June 1 respectively this year. The Customs Administration calls on the traders exporting goods to the aforementioned countries to apply for AEO certification, so that they can enjoy the benefits of facilitated customs clearance resulted from MRAs.
The Customs Administration indicated that, through mutually recognizing the AEO programs by the Customs of both countries, exporters awarded AEOS status would be directly benefited from MRAs. More specifically, the AEO-certified traders from both countries would be able to enjoy the same level of facilitation for their goods exported to the other side, whose competitiveness would then be significantly enhanced in an environment ensuring supply chain security, and favoring just-in-time & zero-inventory logistics management. This, in turn, would have a far-reaching influence on the bilateral trade, helping to bring the economic prosperity of both countries to another new dimension.
In addition to bilateral cooperation, the Customs Administration has been vigorously rationalizing its AEO-related laws and regulations to meet the needs of traders. For example, recently amended regulations allow goods temporarily imported by AEOS to be released with self-affidavit, exempting the duty-payers from the orignial requirement of furnishing the deposit for duty payment. Furthermore, the validity period of AEO certificate, which used to be 3 years, has been made permanent and the AEO certification renewal process has been changed into a simplified calibration procedure as well, which serves to reduce business costs for traders while simplifying operation procedures for Customs.
To further strengthen the supply chain security and facilitation in the ever-changing global trade environment, the Customs Administraion encourages supply chain operators of Taiwan to join the AEO program. For further information on the requirements and benefits of the program, please visit the official website of Taiwan AEO (http://aeo.customs.gov.tw) or contact the AEO specialists of the competent field customs office to acquire further information.