DEVELOPMENT OF AUTHORIZED ECONOMIC OPERATOR IN APEC
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1 INDONESIAN CUSTOMS AND EXCISE DEVELOPMENT OF AUTHORIZED ECONOMIC OPERATOR IN APEC CUSTOMS LEADERS PERTNERSHIP DIALOGUE 4-5 APRIL 2013, PANAMA
2 1 APEC OVERVIEW 2 OUTLINE AND OBJECTIVES OF THE APEC AEO PROGRAM 3 ACHIEVEMENT OF THE AEO PROGRAM IN APEC 4 FUTURE OR GOALS OF THE AEO PROGRAM IN APEC Contents 1
3 9/11 Tragedy Demand for Securing Global Trade Customs WCO SAFE Framework of Standards Partnership with Business Community International supply chains increasingly sophisticated advance of globalization Growing demands for trade facilitation 2 Source: SCCP Blueprint 2010, APEC Secretariat
4 The Asia-Pacific Economic Cooperation (APEC) forum was established in 1989 to leverage on the growing interdependence of Asia-Pacific economies. APEC's vision (the 'Bogor Goals' 1994): free and open trade and investment in the Asia Pacific by further reducing barriers in the region and by promoting the free flow of goods, services and capital among APEC economies. APEC Asia Pacific Economic Cooperation 3
5 APEC has grown to become one of the world's most important regional groupings. 21 member economies more than 2.7 billion people 53 percent of world real GDP 44 percent of world trade. average annual GDP growth of 3.5 percent, versus 3.0 percent growth in non-apec economies (on a purchasing power parity basis). APEC FIGURES 4 Source: APEC at a Glance, 2012, APEC Secretariat
6 APEC s activities are focused on THREE KEY AREAS: Trade and Investment Liberalization Business Facilitation Economic and Technical Cooperation Since its inception in 1989, trade facilitation has been one of the core activities of APEC. Although after the 9/11 tragedy, a new dimension was added to world trade i.e. the secure and save movement of goods and people across borders, APEC noted that legitimate international trade must continue to be facilitated. AEO support to APEC Trade Facilitation 5
7 Shanghai Accord TFAP I 5% Reduction in trade transaction cost By 2006 TFAP II Further 5% Reduction in trade transaction cost By 2010 TRADE FACILITATION ACTION PLAN II (TFAP II) Menu of actions and measures: CUSTOMS PROCEDURES - One of the Action Plans is Implement APEC framework based on the WCO Framework of Standards Revised Key Performance Indicator (KPI) Area: Implement APEC Framework based on the WCO Framework of Standards KPI: -- Number of Authorized Economic Operators -- Percentage of Trade Covered by Authorized Economic Operator AEO in APEC Trade Facilitation 6
8 THE DEVELOPMENT OF AEO PROGRAM BY APEC SCCP
9 Year 2005 APEC SCCP added to their work plan the Implementation of an APEC Framework for Secure Trade based on the WCO SAFE FoS In order to Facilitate trade by making security requirements less burdensome to businesses and the international trade community SCCP held three Seminars: Essential Legal Authorities, Establishment of Industry Partnership Programs, Supply Chain Specialist Training, 2009 SCCP held two other Seminars: Targeting and Risk Management, and Border Enforcement Training, 7
10 2009 a. SCCP established AEO Working Group, LED BY Japan and the US Objectives: ~ to assist APEC economies in establishing AEO Programmes and in harmonizing them with each others ~ Encourage MRA arrangement among interested economies b. SCCP Endorsed The Terms of Reference 2010 a. AEO working Group produced AEO Program Compendium b. Survey on the need of capacity building c. APEC Customs DG and Commissioners Meeting agreed to adopt AEO as one of the 8 Priorities to be Promoted among the APEC Customs Administrations 8
11 Support of the development of AEO programmes / promotion of Mutual Recognition Arrangements and Trade Recovery Efforts 1. Recognizing the importance of realizing trade facilitation and trade security at a high level, we support the establishment of an AEO programme in each economy, as advocated by the World Customs Organization (WCO), and will promote mutual recognition arrangements (MRA) of the AEO programmes between interested economies, about which the business sector has strong expectations. 2. Commending the completion of the AEO Compendium developed by the SCCP based on the AEO Action Plan, we will pursue the steady implementation of the AEO Action Plan including the development of the AEO Best Practice with a view to promoting the establishment of an AEO programme in each APEC economy. 3. Recognizing the importance of APEC Trade Recovery Program to facilitate trade while ensuring trade security, we ask SCCP members to continue developing communication networks to facilitate the resumption of trade in the event of a major disruption to the global supply chain. APEC CUSTOMS DG / COMMISSIONERS MEETING 14 September
12 AEO and MRA Programme in APEC
13 AEO Programs in Place AEO Piloting AEO MRA New Zealand Mexico Canada, Japan Japan, Canada Korea, Singapore, China USA Korea Singapore USA Chinese Taipei Source: Trade Facilitation through Customs Procedures: Assessment of APEC s Progress, APEC PSU, October 2011 Operational AEO Programs AEOs to be Launched Compliance Program New Zealand Chile Indonesia Japan Canada China Korea Singapore USA Malaysia Mexico Hong China Peru Kong, Chinese Taipei Thailand 10 Source: 2012 WCO AEO Compendium
14 Concluded MRAs (19) Number of MRA s per Country MRA Being Negotiated Date Country Country Signed June 2007 NZ-USA China-Japan Canada 4 0 May 2008 Japan-NZ Japan-Malaysia China 1 3 June 2008 Canada-USA China-Korea Hong Kong, China 0 1 June 2009 Japan-USA Hong Kong China-Korea Japan 6 2 June 2010 Canada-Japan NZ-Singapore Korea 5 4 June 2010 Canada-Korea Singapore-USA Malaysia 0 1 June 2010 Canada-Singapore New Zealand 3 1 June 2010 Korea-Singapore Singapore 4 2 June 2010 Korea-USA USA 6 1 May 2011 Japan-Korea In Negotiation June 2011 June 2011 June 2012 Korea-NZ Japan-Singapore China-Singapore 11 MRA Source: APEC Capacity Building Workshop on AEO, Bangkok, February 2013
15 No Key Performance Indicator 1. Number of Authorized Economic Operators 2. Percentage of Trade Covered by Authorized Economic Operator Assessment Result (2010) AEO in APEC region increased from 8,322 (2007) to 10,502 (2009) = 26% increase in AEO numbers over these three years Seven economies had provided data of number of AEOs and trade covered by AEO from 2007 to Rough approximation: the expansion of AEO programmes in APEC has increased the share of merchandise trade handled by authorized business by over 6% per year AEO KPI Assessment Result 12 Source: Trade Facilitation through Customs Procedures: Assessment of APEC s Progress, APEC Policy Support Unit, October 2011
16 No. WORKSHOP DATE VENUE ORGANIZER 1. Regional Capacaity Building Workshop on AEO Februari 2013 Bangkok, Thailand APEC Technical Assistance and Training Facilities (ATFT), sponsored by USAID, and Thai Customs 2. Second Regional Capacaity Building Workshop on AEO April 2013 Chile Aims to: to promote the concept of AEO as a best practice throughout the region, and provide an opportunity for APEC economies that have yet to implement an AEO program to identify key areas for implementation and/or improvement APEC SCCP Work Program on AEO
17 AGENDA: Update the current status of AEO implementation and development in APEC Member Economies Overview of AEO and MRA (Nathan Associates Inc) Cooperation with Other Agencies on AEO (WCO) The Practices of AEO Program in Japan and WCO ToolsSafe and Secure (Japan) New Zealand Trade. The Secure Export Scheme (New Zealand) AEO Program Discussion: AEO Program Highlights (Canada) Communication and Standards (US) MRA Implementation (Korea) Country Program Update: MRA Effects (WCO) Experiences Implementing MRA: Panel Discussion group discussion 14 Regional Capacity Building Workshop on AEO, Bangkok, January 2013
18 Increase the number of APEC Economies which implement AEO Increase the number of MRA in the region Develop concrete strategic objectives for the Asia- Pacific region with regard to AEO program development, implementation, and maintenance, including goals for fostering AEO and Mutual Recognition and efficient uses of capacity building and other technical assistance to ensure sustainability; FURTHER GOALS 15
19 THANK YOU T e r i m a k a s i h syarif@kbritokyo.jp
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