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Customs administrations of all 10 Association of Southeast Asian Nations Member States signed remotely on Sept 19 the Mutual Recognition Arrangement of their respective Authorized Economic Operator Programs
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The regional AEO MRA is expected to be implemented by 2025
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The ASEAN AEO mutual recognition could potentially enhance trade and promote economic growth in ASEAN and enhance supply chain security
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Certified AEO operators may benefit from smoother cargo clearance and flow of goods within ASEAN
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Six ASEAN member states will undergo pilot testing of the program for six months starting December 2023
Customs administrations of all 10 Association of Southeast Asian Nations (ASEAN) Member States (AMS) have signed remotely on Sept 19 the Mutual Recognition Arrangement (MRA) of their respective Authorized Economic Operator (AEO) Programs, with a view toward implementing the regional AEO MRA by 2025, Singapore Customs said in a statement.
The ASEAN AEO mutual recognition (AAMRA) could potentially enhance trade and promote economic growth in ASEAN in line with the ASEAN Economic Community Blueprint 2025 to achieve a highly integrated and cohesive ASEAN economy.
By reducing documentary checks and physical cargo inspections, the AAMRA offers certified AMS AEOs the prospect of smoother cargo clearance and the flow of goods within ASEAN.
“The AAMRA is an important step forward in facilitating intra-ASEAN trade and enhancing end-to-end supply chain security. I hope the AAMRA will provide further opportunities for AMS to negotiate with non-ASEAN partners as a bloc, furthering the role of the ASEAN Economic Community,” said Tan Hung Hooi, Director-General of Singapore Customs.
Of the 10 AMS, Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand have jointly assessed and validated each other’s national AEO Programs, ensuring their alignment with the World Customs Organization SAFE Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework). These programs are also deemed mutually comparable.
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The six AMS are now in the process of completing their preparatory works to commence a six-month pilot in December 2023, with the aim of implementing the AAMRA in the third quarter of 2024.
The remaining four AMS (Cambodia, Lao PDR, Myanmar and Vietnam) are in the process of getting more companies to be part of their AEO programs.
Once they are ready, a joint validation will be conducted to assess the mutual comparability of their AEO procedures, based on the SAFE Framework. A second AAMRA pilot for this group of AMS is targeted to commence in 2024, once all preparations are in place.
The AAMRA was mooted by Singapore during the 32nd ASEAN Summit held in Singapore in 2018. Singapore Customs has been leading the efforts of the Sub-Working Group on AAMRA since mid-2020.
Aside from facilitating trade in the region, the AAMRA is expected to enhance supply chain security as the other AMS recognize the compatibility of Singapore Customs’ Secure Trade Partnership-Plus (STP-Plus) program with their respective AEO programs.
Singapore’s total trade volume with AMS averaged S$292.5 billion for the past three years (2020-2022). Companies in Singapore welcomed the signing of the AAMRA.
Vijay Raj, general manager, Freight, ST Logistics Pte Ltd, said, “ST Logistics is a Singapore-based company with 50 years of experience in providing integrated and cost-effective supply chain solutions to the Defence, Government and Healthcare sectors. With the AAMRA agreement in place, ST Logistics enjoys expedited customs clearance internationally with reduced documentation across ASEAN countries including Indonesia, Malaysia and Thailand to achieve cost savings with better predictability of cargo movement. Should there be any customs inspection, our cargo will receive priority treatment which is critical to us in supporting the critical needs of our customers. Our business partners will also have the confidence in us to provide a secured supply chain, which is a competitive advantage for our company.”
Angel Manufacturing Singapore Pte Ltd senior vice president Suzuki Motohiko said: “We have customers in ASEAN countries, and the AAMRA is expected to not only enable us but also our customers to import and export with a high level of security, but also to make the import/export even smoother.”
