AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of...

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Japan Customs AEO Program in Japan AEO Program in Japan WCO Knowledge Academy July 4 th , 2013

Transcript of AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of...

Page 1: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Japan Customs

AEO Program in JapanAEO Program in Japan

WCO Knowledge AcademyJuly 4th, 2013

Page 2: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

1. Overview of Japan�s AEO Program

2. Mutual Recognition Arrangement

3. Challenges

Outline

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Page 3: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

I. Overview of Japan�s AEO Program

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Page 4: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

AEO (Authorized Economic Operator) Program

AEO program which ensures security while facilitating trade, working in partnership with private sectors.

Japan Customs introduced the AEO program in conformity with international standards (March 2006, developed subsequently)

Economic Operators who are authorized by Customs as having established a system to ensure cargo security and compliance enjoy benefits such as simplified and expedite customs procedures

AEO Program

Efforts in international community after 9/11 to address need for strengthened security

Background

Promotion of trade facilitation by streamlining customs procedures with a view to striving to greater competitiveness in international environment

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Page 5: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Scope of Japan�s AEO Program

Shipping CompanyForwarder

Bonded Area

(CY)

Importers

Exporters

Manufacturers

Transportation

Companies

Warehouse

Operators

Customs

Brokers

Shipping

Companies

and

Airlines

International Logistic Operators

Importers

Exporters

abroad

Bonded area

(CY)

Shipping Company

Importer

Forwarder

〔Importation〕

〔Exportation〕

Exporter

Customs Broker

Customs

Customs Broker

Customs

Airline

Airline

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Page 6: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Exporters 236 Exporters

Importers 89 Importers

Warehouse Operators

116 Warehouse Operators

Customs Brokers 86 Customs Brokers

Logistic Operators

8 Logistic Operators

(as of July 1, 2014)

Total: 535 AEOs

Current Situation of AEO operators

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Page 7: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Consistent withConsistent with

�WCO SAFE FoS��WCO SAFE FoS�

○ Compliance record

○ Proper ability to conduct operations

○ Compliance Program

・ organizational set-up

・ due Customs procedures

・ cargo/conveyance/premises

security

・ internal audit

・ contracting parties requirement

・ communication with Customs

・ crisis management

・ financial integrity

・ education/training

etc.

Authorized ImportersAuthorized Importers- Pre-arrival lodgment of import declaration and

pre-arrival import permission � early release of cargo

- Reduced number of elements for import declaration

- Reduced examination and inspection at the time of

import

- Periodical lodgment of duty/tax payment declaration

Authorized ExportersAuthorized Exporters- Export procedures are completed while keeping the

cargo in their own premises

- Reduced examination and inspection at the time of

export

Authorized Warehouse Operator Authorized Warehouse Operator - Establishment of a new Customs warehouse only by

notification

- Free monthly fee

The Requirements and Benefits

Examples of BenefitsRequirements

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Page 8: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

General Procedure

Benefits of Japan�s AEO Program: Importers

After placing goods into Customs area

Ship�s Entry

Duty

Payment

Duty

Payment

Import/Duty Payment Declaration

Import Declaration

Ship�s Entry

Duty Payment Declaration

Cargo ReleaseCargo ReleaseCargo

Release

Import DeclarationImport Declaration

Ship�s EntryShip�s Entry

Import PermitImport PermitImport Permit

Import Permit

Examination

Inspection

Cargo Release

Examination

Inspection

Import DeclarationImport DeclarationImport Declaration

(Optional)

(Periodical)

- Compliance-reflected reduced examination and inspection

- Pre-arrival lodgement of import declaration and permission

- Release of cargo before duty/tax payment declaration and duty/tax payment

Before placing goods into Customs area

Compliance Reflected

Procedure for Authorized Importers

conducted at Customs area

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Page 9: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Benefits of Japan�s AEO Program: Importers

Mean Time required for a time period from Customs declaration to Import permit (Time Release Study by Japan Customs)

(General Cargo)

0.1

10

20

30

(hour)

【Maritime Cargo 】

AEO Cargo

2.6

3.3

4.3

4.9

5.6

10.2

13.1

19.8

26.11st study (in 1991)

2nd study (in 1992)

3rd study (in 1993)

5th study (in 1998)

4th study (in 1996)

6th study (in 2001)

9th study (in 2009)

7th study (in 2004)

8th study (in 2006)

General Cargo hours

hours

3.1

10th study (in 2012)

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Page 10: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Premises of Exporters

Customs Area (CY)

Procedure for Authorized Exporters

General Procedure

Benefits of Japan�s AEO Program: Exporters

Export

Permit

Examination

Inspection

Export

Declaration

- Waive the requirement to store goods in the Customs area

- Compliance-reflected reduced examination and inspection

Compliance

Reflected

Premises of ExportersCustoms Area (CY)

Export

Permit

Examination

Inspection

Export

Declaration

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Page 11: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Submission of Application

Examination of application

Authorization

【Authorization Process】

Process of AEO Authorization

【Post Audit Process】

Prior Consultation with Customs

For quality assurance based on partnership

with �Business� and �Customs�

On-site inspection

if requested

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Page 12: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Internal Audit Report AEO

Preparatory Work

- Examination of Internal Audit Report

- Identify the points to be checked

Regional

Customs

On-Site Audit

- Process Inspection, Site Inspection, Interviews

Audit Report CTB

Administrative Order for Improvements

Revocation

If there is no proper improvements

Regional

Customs

If a significant problem is found

Process of Post Authorization Audit

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Page 13: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

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Hakodate Customs

Tokyo Customs

Yokohama Customs

Nagoya Customs

Osaka Customs

Kobe Customs

Moji Customs

Nagasaki Customs

Okinawa Regional Customs

AEO Unit

AEO Unit

AEO UnitAEO Unit

AEO Unit

AEO Unit

AEO Unit

AEO Unit

AEO Center(Operation for Consistency)

Ministry of FinanceCustoms and Tariff Bureau(Policy & International Affairs)

Operational Structures: Japan Customs

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Page 14: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

II. Mutual Recognition Arrangement

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Page 15: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

- Mutual Acceptance of AEO Status- Preferential Treatment which corresponds with AEO status of other country

Concept of Mutual Recognition

- Ensuring Security and Facilitation in the Global Supply Chain - Enabling Efficient Allocation of Customs Resources - Enhancing Competitiveness by Maximizing Benefits to Reliable Stakeholders

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Page 16: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

2008� Signed with New Zealand (May), implementation (Oct.)

2009� Signed with the United States (June), immediate

implementation

2010

� Signed with the EU (June)� Signed with Canada (June)

2011

� Signed with Korea (May), implementation (Nov.)� Signed with Singapore (May), implementation (Aug.)� Implementation of EU-Japan MRA (May)

2012� Implementation of Canada-Japan MRA (Nov.)� Full-implementation of Japan-US MRA (Dec.)

2014� Signed with Malaysia (June)

History of Mutual Recognition

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Page 17: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Signed MRA with Malaysia on the occasion of WCO 2014 Council

History of Mutual Recognition

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Page 18: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Benefits of Mutual Recognition

AEO Exporter(Export)

(Import)

Partner Country

Importer

AEO Exporter

(Export) (Import)

Japan

Other benefits can be provided by Mutual Recognition.

No AEO programme

Exporter Importer(Export) (Import)

After MR

Before MR

Importer

Compliance-reflected inspection/examination by

Mutual Recognition

Compliance-reflected inspection/examination by domestic AEO programme

Compliance-reflected inspection/examination by domestic AEO programme

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Page 19: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Three Phase Process toward Mutual Recognition

Signing of Mutual Recognition ArrangementSigning of Mutual Recognition Arrangement

ImplementationImplementation

Phase 1: Comparison of AEO Programmes

- to confirm compatibility of two programmes

Phase 2: Joint Verification ofAEO Implementation

- to confirm compatibility at operational level

Phase 3: Development of MRA Text

(Immediately after the signing)

Discussionon MRbenefits

Coordinationandenhancementof technicalcapabilitiesto implementMRA

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Page 20: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

<Well-functioning AEO programmes>

� Fully operational AEO programmes in line with the WCO SAFE Framework

� AEO programmes must have: Proper mechanism to maintain the quality of AEOs

Transparency and predictability

Measures to ensure consistency of operation

Enabling Factors (1)

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Page 21: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

� Adequate organisational settings within Customs to run its programme and to implement MRA

Enabling Factors (2)

<Organizational Setting>

� Steady and well-functioning channel for information exchange for effective implementation, supported by legal framework on information exchange

<Framework of Information Exchange>

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Page 22: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

<Operational capabilities>

� Adequate customs database and proper process to examine compliance records of applicants

� Proper IT system for Customs procedures and risk assessment to properly realise mutually recognized AEOs

- Automated risk assessment system including selectivity criteria

- Selectivity criteria including �foreign exporters� and �foreign importers� as indicators

- Identifier (i.e. code for foreign exporters/importers)

Enabling Factors (3)

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Page 23: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

III. Challenges

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Page 24: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Challenges

2. Automatic data exchange system of AEOs with partner countries

3. Cooperation between Customs and Aviation Authorities (AEO and KS/RA)

1. Further expansion of AEOs and Follow-up of existing members

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Page 25: AEO Program in Japan - etouches Program in Japan WCO Knowledge Academy July 4th, 2013. 1.Overview of Japan™s AEO Program 2.Mutual Recognition Arrangement ... Importers Exporters

Thank you!Thank you!

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