Current Situation of Japan s AEO Program

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1 Current Situation of Japan s AEO Program 15 th March 2018 Tomoyoshi Watanabe Director For AEO Program Customs and Tariff Bureau, Ministry of Finance 1

2 Outline 1. Japan s AEO Program at a glance 2. Benefits & Impact 3. MRA Current Status 4. Challenges 5. AEO in Tripartite (JP-CN-KR) Framework 6. Technical Cooperation on AEO 2

3 Outline 1. Japan s AEO Program at a glance 3

4 Scope of Japan s AEO Program Customs Exportation Customs Broker Exporter Customs Area Airline Forwarder Shipping Company Type of Operators in Japan s AEO Customs Importers Exporters Manufacturers Warehouse Operators Customs Brokers Logistic Operators Importers Exporters abroad Customs Importer Customs Broker Forwarder Customs Area Airline Shipping Company Importation 4

5 Current Situation (as of February 15, 2018) Exporters 241 Exporters Importers 94 Importers Warehouse Operators 131 Warehouse Operators Customs Brokers 183 Customs Brokers Logistic Operators 7 Logistic Operators Total: 656 AEOs 5

6 Transition in the Number of AEOs Logistic Operator Customs Broker Warehouse Operator Importer Exporter /4/2006 1/4/2007 1/4/2008 1/4/2009 1/4/2010 1/4/2011 1/4/2012 1/4/2013 1/4/2014 1/4/2015 1/4/2016 1/4/ /2/ (As of 15/2/2018)

7 Outline 2. Benefits & Impact 7

8 Benefits of Japan s AEOs: Exporters - Export procedures are completed while keeping the cargo in their own premises - Compliance-reflected reduced examination and inspection General Procedure Premises of Exporters Customs Area Export Declaration Examination Inspection Export Permit Procedure for AEO Exporters Premises of Exporters Compliance Reflected Customs Area Export Declaration Examination Inspection Export Permit 8

9 Benefits of Japan s AEOs: Importers - Pre-arrival lodgment of import declaration and permission - Compliance-reflected reduced examination and inspection - Release of cargo before duty/tax payment declaration and duty/tax payment General Procedure After placing goods into Customs area Ship s Entry Import/Duty Payment Declaration Examination Inspection Duty Payment Import Permit Procedure for AEO Importers Before placing goods into Customs area Import Declaration Ship s Entry Import Permit Duty Payment Declaration Duty Payment Examination Inspection Compliance Reflected 9

10 Benefits of Japan s AEOs: Effects of AEO Importers Time Release Study on Imported Sea Cargo (Before NACCS) Declaration 13,1 19,8 Permission 26, ,9 5,6 10, ,3 3,3 3,1 2,6 2,4 AEO Cargo(2015):0.0h (declaration-permission) Hours 10

11 Benefits of Japan s AEOs: Effects of AEO Importers Time Release Study on Imported Air Cargo- Permission Declaration 1991 (Before NACCS) ,6 1,6 2, ,4 0,4 0,6 0,7 1, ,4 0, ,3 AEO Cargo(2015):0.0h (declaration-permission) 0 0,5 1 1,5 2 2,5 Hours 11

12 Voice of Japan s AEOs AEO Program leads to : Reduction of Lead time and Cost Improving predictability of the logistics of own cargos Enhancing the information sharing system Improving the accuracy of work More efficient internal control PR to get a contract Etc. 12

13 Outline 3. MRA Current Status 13

14 Mutual Recognition : Current Status of Japan Signed MRAs Date Country May 2008 June 2009 June 2010 June 2010 May 2011 June 2011 June 2014 August 2016 New Zealand USA Canada EU Korea Singapore Malaysia Hong Kong 14

15 Outline 4. Challenges 15

16 Challenges Maintaining and improving the level of security and compliance of AEOs Increasing the number of AEOs including SMEs Increasing MRA utilization rate 16

17 Outline 5. AEO in Tripartite (JP-CN-KR) Framework 17

18 AEO Cooperation under TCHM Outline Collaboration on AEO under TCHM (Tripartite Customs Heads Meeting) among Japan-China- Korea AEO Action Plan MRAs among the three Customs Administrations Cooperation in Multilateral Fora (WCO, APEC, etc.) AEO WG under TCHM Possible Future Multilateral Collaboration on MRAs Bilateral: Japan-Korea Work on Raising the Level of MRA Utilization Bilateral: Japan-China Progress made for Japan-China AEO MRA 18

19 Outline 6. Technical Cooperation on AEO 19

20 Contribution to Global AEO Program Development & MRA Network through TC Programs Sharing Japan s experience & Advice on AEO Operation - How to establish & develop AEO program - Approval & Monitoring process - Site visit to share operation of AEO Program - Challenge and Resolution - Improvement of AEO Program already established Past WS : Cambodia, Malaysia, Thailand etc. Forthcoming WS : UEMOA 20

21 Thank you! 21