China-Thailand AEO Mutual Recognition Agreement to Reduce Costs and Improve Efficiency for Businesses

On February 6, the General Administration of Customs of China (GACC) and the Customs Department of the Kingdom of Thailand officially signed the Mutual Recognition Arrangement (MRA) on China's Enterprise Credit Management System and Thailand's Authorized Economic Operator (AEO) Program. This agreement has been eagerly anticipated by businesses engaged in China-Thailand trade. According to statistics, 432 AEO-certified enterprises under Guangzhou Customs currently conduct import and export trade with Thailand.

Guangdong Xinbao Electrical Appliances Holdings Co., Ltd., an AEO-certified enterprise based in Foshan, specializes in the development, design, manufacturing, and sales of kitchen appliances and homecare electrical devices.

"Thailand has always been one of our key overseas markets. In 2024, our exports to Thailand exceeded 26 million RMB in value. The signing of the China-Thailand AEO Mutual Recognition Agreement is a major opportunity for us. Once implemented, we expect a 50% reduction in customs clearance time and a 20% decrease in overall costs, significantly enhancing our competitiveness in the global market," said the company's customs affairs representative.

Another company closely monitoring the agreement is Guangdong Midea Refrigeration Equipment Co., Ltd.

"Our factory in Thailand is one of Midea Group's largest air-conditioning production bases in Thailand and Southeast Asia. In 2024, we will export approximately 1.5 billion RMB worth of compressors, structural components, and other products to Thailand, where they will be combined with locally sourced raw materials to produce air-conditioning units," explained Douglas, Logistics Manager for Midea Thailand. "The implementation of the AEO MRA will provide a more convenient green channel for businesses, accelerating cargo turnover. This 'AEO golden credential' gives us greater confidence in expanding our international market."

To help more enterprises leverage AEO policy benefits, Guangzhou Customs has focused on major regional projects, key supply chains, and emerging business models by establishing an AEO enterprise development program. The initiative utilizes VR technology and intelligent laser projection to provide visual and precise interpretations of AEO standards, adopting a "targeted + smart" dual-track approach to enhance enterprise credit cultivation from "single breakthroughs" to "chain development."

In parallel, Guangzhou Customs has launched a comprehensive policy package to support AEO enterprises, including:

- 45 facilitation measures with detailed implementation guidelines.

- 9 innovative customs-specific convenience measures tailored to the needs of industries such as automotive, chemicals, and food processing.

- Continuous improvements to the import-export environment to maximize the benefits of AEO certification for businesses.

"The signing of this MRA marks a significant milestone in trade facilitation between China and Thailand, laying a solid foundation for further bilateral trade growth. Once the agreement is officially implemented, Chinese exports of machinery, electronics, textiles, and apparel will clear customs in Thailand more smoothly. Meanwhile, Thailand's fruits, rice, rubber, and other signature products will enter the Chinese market faster, offering greater choices for consumers in both countries," said Zhong Jianfeng, Deputy Director of the Enterprise Management and Audit Department of Guangzhou Customs.

He also emphasized that Guangzhou Customs will continue to leverage its AEO training base as an "incubator" to expand enterprise credit cultivation efforts, helping more high-quality companies obtain the international trade "green pass." This will further unlock the advantages of the AEO system, strengthening the resilience of industrial and supply chains.

As of the end of 2024, the Guangzhou Customs district had 873 AEO-certified enterprises, the highest number among Chinese customs districts. AEO enterprises accounted for 43.11% of the district's total import and export value and 43.05% of tax contributions, playing a crucial role in stabilizing foreign trade.