A TOTAL of 79 firms in Shenzhen obtained Authorized Economic Operator (AEO) certifications in 2023, according to customs data issued recently.

To date, the number of AEO firms in the city has jumped to 480 to include Shenzhen-based tech heavyweights such as Huawei Technologies Co. and ZTE Corp.

These AEO firms, which account for only a fraction of 0.26% of Shenzhen’s importers and exporters, contributed to nearly half of the city’s total foreign trade value last year, Shenzhen Economic Daily quoted the customs data as saying yesterday, without providing the specific number.

Shenzhen’s exports jumped 12.5% year on year to 2.46 trillion yuan (US$342 billion) in 2023, ranking first for the 31st year in a row among Chinese mainland cities, according to Shenzhen Customs figures.

As a major export-oriented city, Shenzhen’s foreign trade reached a new record of 3.87 trillion yuan last year, up by 5.9% year on year, ranking second among mainland cities, customs figures show.

The newspaper said that AEO firms have provided significant impetus for the “high-quality development” of Shenzhen’s foreign trade, without offering more details.

Advocated by the Brussels-based World Customs Organization, which represents 184 customs administrations across the globe that collectively process about 98% of world trade, the AEO program is designed to strengthen international supply chain security and facilitate the movement of legitimate goods.

The program aims to provide customs certifications to firms with high-level compliance, credit status, and safety, as well as provide eligible firms with customs clearance measures in their own countries and mutually recognized countries.

Companies with AEO status will enjoy simplified customs procedures, such as reduced examination and prioritized clearance, which will significantly shorten customs clearance time and reduce storage and logistics costs.

China has signed AEO agreements with customs authorities in 52 countries and regions, including Switzerland, the United Arab Emirates, South Africa, South Korea, Japan, and Brazil, to enable easier customs clearance for companies by the end of 2023.

Shenzhen Customs has conducted training sessions for firms which intend to gain the AEO certification. The training sessions, held both online and on-site, are mainly for firms to improve their internal controls, financial status, compliance norms, and trade security to check and fill regulatory gaps and upgrade their management levels in order to get eligible.

“Within just three months, we have successfully obtained the AEO certification,” Li Guorong, customs affairs manager at BYD Precision Manufacture Co., said.

“With the endorsement of this AEO certificate, we have greater confidence in our development and believe that we will achieve better performance this year.”  (Yang Yunfei)