World Bank Group’s Business Ready Project
Case Studies
The Government of the Hong Kong Special Administrative Region (HKSAR) is committed to reform and embrace changes to enhance the competitiveness and create a more business enabling environment. The efficient movement of goods across boundaries is crucial for businesses aiming to compete on the international stage. The Customs and Excise Department (C&ED) administers the Authorized Economic Operator (AEO) Programme, a trusted trader certification initiative that enhances the efficiency and management of the import and export supply chain. This article delves into the significance of the AEO Programme and its multifaceted benefits for companies engaged in international trade.
Background
The Hong Kong AEO Programme is administered by C&ED under an open and voluntary certification regime. Under the Programme, local companies of different sizes which have met pre-determined security standards will be accredited as AEOs, and enjoy appropriate Customs facilitation. This partnership programme is open to all stakeholders such as manufacturers, importers, exporters, freight forwarders, warehouse operators, carriers, etc. involved in the international supply chain.
Mutual Recognition Arrangements
With a fully fledged AEO programme in place, the C&ED continues to explore opportunities for developing mutual recognition arrangements (MRAs) with other Customs administrations. MRAs will further enhance the competitiveness of AEOs in Hong Kong with diversified benefits granted by overseas economies. All these manifest Hong Kong's devotion to securing global supply chain and help strengthen its competitive edge as a major international trading centre and regional logistics hub.
List of Signatories to MRA on AEO is available on C&ED’s website.
Company As a Trusted Partner
A company which has been accredited as an AEO under the Programme will be recognized as a trusted partner of C&ED to jointly secure the global supply chain. Companies which have been granted the status of AEO in the HKSAR, China can also enjoy Customs facilitation upon importing or exporting of their cargoes to the MRA economies.
AEO Benefits
The company will enjoy appropriate incentives including reduced or prioritized Customs inspection. Beyond security benefits, AEOs will enjoy other trade facilitation and advantages offered by C&ED and other collaborating organisations:-
- Priority clearance and release of shipments: expedited processing and release of shipments;
- Lower rate of physical inspections by Customs due to recognized compliance and lower risk; and
- Other benefits, include: strengthened competitiveness and marketability, enhanced goodwill as a secure trader with industry quality mark, privileged benefits under MRA and extended benefits provided by collaborating organisations such as 10 Free Buyers' Credit Checks offered by the Hong Kong Export Credit Insurance Corporation.
HKAEO Corporate Video
Please check the latest version at C&ED’s website.
Conclusion
Through the cooperative endeavour of the government and the industries, the Programme will strengthen both the security and efficiency of legitimate trade, leverage Hong Kong's role in connecting the mainland and international markets, strengthen Hong Kong's role as an international trade hub and expand Hong Kong's advantages in exports and re-exports.
Browse Other Case Studies
