BEIJING: The governments of China and Israel have signed an agreement that simplifies and standardizes customs procedures on trade between the two countries.
The Authorized Economic Operator (AEO) agreement will enable approved companies in both countries to benefit from expedited customs procedures on trade in goods and services between China and Israel, in recognition of their compliance with tax and customs requirements.
“The mutual recognition program streamlines and simplifies trade between two countries, in this case between Israel and China, while maintaining a high level of enforcement,” Israel Tax Authority Director Moshe Asher told The Jerusalem Post.
An AEO is defined by the World Customs Organization as “a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national customs administration as complying with WCO or equivalent supply chain security standards.”
AEOs include manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, and distributors, among others.
Trade between Israel and China last year totaled USD11bn, about USD8.3bn of which consisted of Chinese exports to Israel. For the first time, in 2014, Israel imported more from China than from the United States.
Besides China, Israel has AEO agreements with Canada, South Korea, Taiwan, and the United States.
