Chinese and Philippines Customs Sign AEO Mutual Recognition Arrangement to Reduce Trade Costs

On January 4, 2023, the Customs of China and the Philippine signed the Arrangement on Mutual Recognition of Authorized Economic Operator (“AEO”). 

China Customs became the first AEO mutual recognition partner of Philippine Customs. After the signing of the AEO mutual recognition arrangement, the export goods of AEO enterprises in both China and the Philippines will enjoy four facilitation measures such as lower inspection rate, priority inspection, designated customs liaison service, and priority customs clearance after international trade interruption and resumption. The clearance time is expected to be significantly reduced, and the costs of ports, insurance and logistics will also be reduced accordingly.