Firms Urged to Gain AEO for Faster Customs Clearance
By Lee Hyo-sik
Staff Reporter
There is good news for businesses here seeking to have their products pass through customs clearance quickly and easily. All they have to do is to obtain an ``authorized economic operator'' (AEO) certificate from the nation's customs inspector.
The Korea Customs Service (KCS) has launched a full-scale campaign to encourage export-oriented companies to improve their product safety management and meet other customs-related requirements, prior to customs inspections at ports of departure.
The AEO allows products made or handled by accredited operators to pass through customs checkpoints with fewer or no inspections, giving companies the benefit of faster export and import processing and enabling customs officials to concentrate on shipments from lesser-known businesses.
Samsung Electronics and 13 other businesses have been awarded the AEO certificate for their high standards of product safety and accurate customs filings, saving significant amounts of time and costs in customs procedures.
``We have been informing local firms of AEO and its benefits, urging them to obtain the certificate as soon as possible to take advantage of the eased customs clearance. It will save logistics time and costs, and improve their corporate image as a safe and responsible member of the community. To promote the use of AEO, we have also developed a symbol for it and will apply for a patent,'' KCS Commissioner Hur Yong-suk said during a meeting of economy-related ministers held at the Gwachon Government Complex, south of Seoul, Wednesday.
Hur said the United States and many other advanced countries have introduced the AEO system to help companies deal with customs-related issues so that they can more easily trade industrial, agricultural and other types of goods and commodities at lower costs.
``The World Customs Organization (WCO) recognized the AEO in 2005 and has been promoting its adoption by member nations as a way to deal with the strengthened customs inspections across the globe since the 9/11 terrorist attacks in the U.S. The U.S., Canada, Japan and other advanced economies have signed a mutual recognition agreement to acknowledge each other's AEO certificates and extend the same customs benefits to companies in their counterparts,'' the commissioner said.
The KCS has been trying to reach an accord with the U.S., Canada and Singapore, the commissioner said, adding the agency is seeking to sign a pact with the three countries by June 2010.
``If these nations recognize our AEO, awarded local exporters will benefit significantly from the eased and convenient customs inspections overseas. About 242 local companies have expressed intent to seek AEO certification by the end of 2010. Samsung, LG and other large corporations are moving fast to gain the certificate by making investments to improve product safety and satisfy other customs standards. But many small-and medium-sized enterprises (SMEs) are still indifferent to AEO and some of them do not have the resources and know-how to meet our requirements,'' Hur said.
Against these backdrops, KCS plans to hold a series of seminars and public forums to promote AEO among small businesses and provide them with low-interest rate loans and consulting services.
``On top of the U.S., Canada and Singapore, we will expand the bilateral recognition pact with Japan, China, the European Union and other major trading partners to help export firms lower logistics and customs-related costs and boost outbound shipments,'' Hur said.