Lovol Heavy Industry Co., Ltd. (“Lovol”) obtained the certificate of AEO “Generally Authorized Enterprises” awarded by Jinan Customs on August 29, 2016. This day witnessed that Lovol officially became one of customs AEO “Generally Authorized Enterprises” which is necessary for key customers to develop businesses. Thereafter, Lovol will enjoy such privileges of customs clearance system as shorter clearance time and lower costs.
    It is understood that AEO, short for Authorized Economic Operator, is advocated by the World Customs Organization and is aimed at realizing safe and convenient trade in the global supply chain through establishing the partnership between customs and business circle. Enterprises obtaining AEO certificate can benefit from clearance bonus delivered by customs’ credit management, including decreased inspection, simplified formalities and quick discharge, greatly reducing the time and cost of customs clearance of the export goods and thus facilitating better development of international markets for enterprises and further enhancing their competitiveness in international trade.
    China Customs formally began to implement AEO certification system in December 2014. The Customs’ current credit management system for enterprises where enterprises registered with the Customs are classified as per their credit status into four grades, including Advanced Authorized Enterprises, Generally Authorized Enterprises, Regular Credit Enterprises and Discredited Enterprises which replaced the original one in which five categories of Category AA, Category A, Category B, Category C and Category D were divided. Among them, enterprises awarded “Generally Authorized Enterprises” can enjoy a relatively low inspection rate on import/export goods, simplified document review of import/ export goods, preferential handling of customs clearance formalities of import/export goods and other rights.
As early as on August 6, 2014, Lovol International Trading Co., Ltd. was awarded the title of “Enterprises of Category AA” which were the enterprises of highest credit rating in Customs management and top honor granted by China Customs to import/export enterprises. Lovol started to submit application materials to proactively apply for certification to be an AEO authorized enterprise in May, 2016. Then China Customs strictly checked and verified the enterprise from 29 items involving five perspectives of internal control, financial situation, law compliance, trade security and additional standards, preliminarily determined that Lovol’s enterprise credit was of high level on the whole and it conformed to various standards and conditions, and reported the results of review to General Administration of Customs of the People’s Republic of China which verified and approved the results. At the end of August, 2016, Jinan Customs awarded “AEO Authorized Enterprises Certificate” to Lovol officially, which symbolizes that Lovol becomes one of Customs AEO “Generally Authorized Enterprises”.
Up to now, China Customs has implemented AEO mutual recognition with customs of South Korea, Singapore, Hong Kong, the European Union and negotiation of mutual recognition with countries including America and Japan and regions like Taiwan (China) is in progress. Customs AEO advanced authorized enterprises can enjoy preferential customs clearance benefits provided by countries or regions which have realized AEO mutual recognition with China, arguably, they get a VIP card for quick customs clearance in relevant countries or regions around the world. For the next step, Lovol will proactively apply for the title of Customs AEO “Advanced Authorized Enterprises” to obtain such “VIP card” for quick customs clearance in relevant countries or regions around the world so as to further enhance Lovol’s competitiveness in the international market and promote the health and rapid development of its products entering the global market.