AEO certification streamlines foreign trade operations in NW China's Ningxia

YINCHUAN, May 17 (Xinhua) -- At the factory of Schaeffler (Ningxia) Co., Ltd., a manufacturer in northwest China's Ningxia Hui Autonomous Region, bearings are undergoing rigorous testing before being shipped to India.

As a longstanding player in the field, Schaeffler recently successfully passed the customs review again, marking its 11th year of securing this status. There has since been a notable reduction in customs inspection rates, while clearance procedures for their exports have been expedited, according to Su Wei, the company's customs liaison.

AEO, or Authorized Economic Operator certification, initiated by the World Customs Organization (WCO), secures privileged treatment for businesses with exemplary credit, compliance, and safety standards. It accelerates such enterprises' foreign trade by granting priority processing and reduced regulatory burdens, thereby enhancing their international competitiveness.

"Having this AEO 'green pass' in international trade has reduced our time costs, leading to a steady annual growth of nearly 5 percent in our company's foreign trade scale," Su said. Yinchuan Customs also provides dedicated coordinators to serve AEO enterprises, helping ensure smooth import-export operations and unlock policy benefits, she added.

China now boasts over 5,800 AEO-certified enterprises, which account for nearly 40 percent of the nation's import and export volume, according to figures released by the General Administration of Customs of China. Within the Yinchuan Customs District, a dozen AEO-certified enterprises, including Schaeffler, accounts for 46.7 percent of total import and export activities, despite representing a mere 0.2 percent of total business entities.

According to Yinchuan Customs, it has extended guidance to 30 foreign trade enterprises to help expedite their AEO certification processes. "The growing interest among small and medium-sized businesses in engaging in import-export activities is evident, with inquiries regarding AEO certification from foreign trade enterprises increasing by approximately 13 percent since the start of the year," said Wu Hui, an official of the Yinchuan Customs.

In a groundbreaking move, China hosted the 6th WCO Global AEO Conference in Shenzhen this month -- the first time this has happened in China. The conference witnessed China signing customs agreements regarding mutual AEO status with both the Republic of Burundi and Iceland.

China has so far signed mutual AEO agreements with 28 economies, covering 54 countries and regions, ranking first in the world in terms of the number of agreements signed and the number of countries and regions with which AEO mutual recognition has been achieved. This puts China at the AEO recognition and cooperation forefront globally.