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China-South Africa AEO Mutual Recognition Signed

Updated:2021-12-10 16:37:03

Recently the China Customs and the South Africa Customs signed an agreement on mutual authorized economic operator (AEO) status, according to the Changsha Customs on December 10. This is China’s second AEO mutual recognition signed with Africa, after Uganda. It provides new development opportunities for Hunan-African cooperation.

Under the agreement, companies that obtain the AEO status in the two countries will enjoy facilitation in customs clearance.

South Africa is Hunan's biggest trading partner in Africa. The trade volume between Hunan and South Africa totaled 13.64 billion yuan in the first ten months of the year. The signing of the China-South Africa Customs AEO mutual recognition will create more favorable business environment for Hunan-South Africa trade.

Person in charge of the Hunan Arshine Group said that the AEO system could help companies with AEO status reduce inspection cost of about 85,000 yuan every year and shorten inspection time to four hours from one day.

In April this year, the General Administration of Customs (GAC) and the Hunan government signed the "Memorandum of Cooperation Between the General Administration of Customs and Hunan Provincial People's Government" to actively promote the construction of the Hunan Pilot Free Trade Zone and the economic and trade development with Africa. The Changsha Customs has set up a special team to assist GAC in advancing China-Africa AEO mutual recognition. Up to now, it has assisted GAC in establishing communication channels with four African countries: Algeria, Burundi, Mauritius, and Rwanda. They have expressed their willingness to cooperate in AEO mutual recognition and have gradually begun preparations for it.