Taiwan, Canada sign arrangement for mutual AEO recognition

Taipei, Dec. 7 (CNA) Taiwan and Canada have signed a mutual recognition arrangement on Authorized Economic Operators (AEOs) to facilitate bilateral trade, according to the Customs Administration.

The AEO arrangement was inked between Taiwan's representative to Canada Harry Tseng (曾厚仁) and Jim Nickel, executive director of the Canadian Trade Office in Taipei (CTOT), during the Canada-Taiwan Economic Consultations held in Taipei on Thursday, the administration said in a news release that day.

An AEO is defined by the World Customs Organization (WCO) as a party involved in the international movement of goods that has been approved by a national customs administration as complying with the WCO or equivalent supply chain security standards.

The pact represents a new milestone in the cooperation between the customs authorities of both countries, the administration said.

Currently, Taiwan is Canada's 6th largest trading partner in Asia, with bilateral annual trade value averaging over US$5 billion in the past three years, it added.

Through this arrangement, exporters awarded the AEO status from Taiwan and Canada will have access to facilitated customs clearances at their respective borders, thereby bringing substantial economic benefits to both countries, the administration explained.

Taiwan began implementing the AEO program in December 2009, and 952 AEOs were certified as of Nov. 30, 2024, including 421 safety and security AEOs and 531 general AEOs, whose import/export value accounts for approximately 50 percent of Taiwan's total trade value, the administration said.

In addition to the pact signed with Canada, Taiwan has already reached similar arrangements with the United States, Singapore, Israel, South Korea, Australia, Japan, India, New Zealand, and Guatemala.