MANILA, Philippines — The Philippines and China have signed an agreement that would fast-track cargo processes between the two countries in a bid to improve trade facilitation.
During President Marcos’ state visit to China last week, the Bureau of Customs (BOC) and the General Administration of Customs of China inked a mutual recognition arrangement (MRA) on the Authorized Economic Operator (AEO) program.
The MRA was signed by Customs Commissioner Yogi Filemon Ruiz and Chinese Minister of Customs Yu Jianhua on behalf of the two governments.
The AEO program is a partnership pursued globally by customs administrations to secure and facilitate trade by providing incentives to traders to improve supply chain security.
MRAs, on the other hand, serve as a platform for AEO programs to provide additional benefits to their members through international recognition with partner countries.
MRA benefits include a higher level of facilitation during domestic and international cargo clearances, priority treatment if the cargo has been selected for inspection, and expedited customs cargo clearance in the event of trade disruption.
These would allow AEO companies to enjoy cost savings due to better predictability of cargo movement.
Under the MRA, Level 2 certified AEO members accredited by the BOC exporting to China will be afforded trade facilitation benefits.
Similarly, exporters to the Philippines accredited as advanced certified enterprises under the measures of the Enterprise Credit Management Program of the GACC will be afforded trade facilitation benefits by the BOC.
The parties will develop an implementation plan for the recognition, trade facilitation benefits, and exchange of information before its implementation by July this year.
Marcos earlier ordered the BOC to enhance trade facilitation, strengthen collaboration with development partners, and advance its position internationally.?