Proposal for a Council Decision on the position to be adopted, on behalf of the European Union, in the EU-China Joint Customs Cooperation Committee regarding mutual recognition of the Authorised Economic Operator Programme in the European Union and the Measures on Classified Management of Enterprises Program in the People’s Republic of China

The European Union (‘EU’) legislation on Authorised Economic Operators (‘AEO’) was introduced by an amendment to the Community Customs Code (Regulation 648/2005 adopted in April 2005). This AEO legislation came into force in January 2008. The objective of trade partnership programmes such as the AEO programme is to provide facilitation to reliable traders which demonstrate compliance with customs requirements and secure their part of the international supply chain.

Mutual recognition of trade partnership programmes enhances end-to-end supply chain security and facilitates trade. It consolidates internationally the approach agreed in the World Customs Organization’s Framework of Standards to Secure and Facilitate Trade. It also addresses the concerns of the business community to avoid proliferation of requirements and to standardise customs security procedures.

The Co-operation and Mutual Administrative Assistance Agreement in Customs Matters (‘CCMAAA’) between the European Community and the Government of the People’s Republic of China (‘China’) signed on 8 December 2004 serves as the basis for EU-China customs relations. According to the CCMAAA, the respective customs authorities undertake to develop customs cooperation covering all matters relating to the application of customs legislation. In particular, they undertake to develop trade facilitation actions in customs matters taking account of the work done by international organisations.

Mutual recognition should allow the EU and China to provide facilitative benefits to economic operators who have invested in compliance and supply chain security and have been certified under their respective trade partnership programmes.

In September 2010 the EU-China Joint Customs Cooperation Committee (‘JCCC’) requested the drafting of a roadmap towards mutual recognition of the AEO programmes. In December 2010 this roadmap was agreed at the EU–China Joint Customs Cooperation Steering Group (‘JCCC SG’) meeting.

In June 2011 the in-depth comparison of the EU’s AEO programme and China’s Measures on Classified Management of Enterprises Program were completed by the EU-China AEO Mutual Recognition Working Group. Following this in-depth comparison which included both desk reviews and practical implementation checks, the EU-China JCCC SG concluded that the two programmes can be considered mutually compatible.

In June 2012 the EU-China JCCC agreed to launch formal negotiations. Since then, three rounds of negotiations have taken place; the first in January 2013, the second in March 2013 and the third in October 2013 to finalise the draft decision of the EU-China JCCC on AEO mutual recognition.

Mutual Recognition of trade partnership programmes is a key component of the Strategic Framework for EU-China Customs Cooperation.

EUR-Lex: COM(2014)106: Follow the progress of this proposal through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2014:106:FIN

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