The Mutual Recognition Arrangement (MRA) of Authorized Economic Operator (AEO) between Taiwan and Australia was signed at the 22nd Taiwan-Australia Bilateral Economic Consultations held in Canberra, Australia, on September 18, 2018. Through the Arrangement, the Customs administrations of Taiwan and Australia are able to mutually recognize the AEOs validated by each other. Exporters awarded AEO status from Taiwan and Australia can both enjoy preferential treatments during clearances at borders.
The Arrangement was signed by Director General Hsieh, Ling-Yuan Hsieh of Taiwan Customs Administration, Ministry of Finance and Commissioner Michael Outram of the Australian Border Force, Department of Home Affairs, while it was witnessed by Taiwan’s Vice Economic Minister Wang, Mei-Hua andWang and Representative Elliot Charng of the Taipei Economic and Cultural Office in Australia as well as Australian representatives from the Department of Home Affairs.
Taiwan Customs Administration indicates that the inking of this Arrangement symbolizes a historic milestone for the customs cooperation between both the Customstwo countries. This Arrangement is the seventh MRA Australia has signed since its implementation of Australian Trusted Trader (Australian AEO) system in July 2016. In view of the fact that Australia is the 11th largest trading partner of Taiwan, as the trade volume between Taiwan and Australia in 2017 amounts to US$11.3 billion, the MRA will bring substantial economic benefits to both sides. It is expected that, through continuing to work closely, both administrations will further generate favorable environment for bilateral customs cooperation and will ensure that enhanced trade facilitation and supply chain security for both countries can be enhanced.
Taiwan Customs has implemented its AEO program since December 2009 and there have been 709 AEOs have been granted as of today, including 354 general AEOs and 355 Safety and Security AEOs, whose import/export value accounts for 46% of its total trade volume. In additionWith continuous efforts throughout all these years, Taiwan Customs already signed AEO MRAs with the United States, Singapore, Israel, and Korea in November 2012, July 2013, December 2013, and December 2015 respectively. This Arrangement has been the first AEO MRA that Taiwan signed since its striving for achievement in “New Southbound Policy”.
Taiwan Customs Administration further indicates that, that Taiwan exporters awarded Safety and Security AEO status will be directly benefited. TThrough the mutual recognition of AEO status validated by the other side, the AEO-certified exporters from both countries are able to enjoy preferential customs procedures and treatments at the other side, whose competitiveness will be significantly enhanced through their access to the a trade environment of facilitated customs clearance procedures, strengthened supply chain security, and just-in-time & zero-inventory logistics management. In addition, it will have a far-reaching influence on the bilateral trade, bringing the economic prosperity of both countries to another new dimension.