On October 6, the Customs and Tariff Bureau of Japan's Ministry of Finance and the Directorate General of Customs and Excise of Indonesia reached an agreement on the Mutual Recognition Arrangement (MRA) for Authorized Economic Operators (AEO), and signed the arrangement at the Osaka-Kansai Myaku Myaku Expo.
The main content of this arrangement is that, during the inspection and examination of import/export cargo, the customs authorities of both Japan and Indonesia will reflect the AEO qualification of the counterpart country’s AEO-certified operators in their own risk assessments. This will enhance the security level of the supply chain in both countries and further streamline customs procedures for AEO operators.
AEO System
The AEO system is a framework that allows businesses with established cargo security management and legal compliance systems to benefit from expedited and simplified customs procedures.
The AEO system is implemented by customs authorities in each country in accordance with the "SAFE Framework of Standards" adopted by the World Customs Organization (WCO) in 2005, aiming to balance trade security and facilitation. In Japan, the system is available to exporters, importers, customs brokers, and other relevant parties.
Mutual Recognition of AEO
Mutual recognition of AEO refers to the arrangement whereby countries grant reciprocal customs benefits to AEO-certified operators recognized by their counterpart authorities.
Japan’s AEO Mutual Recognition Agreements with Other Countries/Regions
- New Zealand (signed May 2008)
- United States (signed June 2009)
- European Union and Canada (both signed June 2010)
- South Korea (signed May 2011)
- Singapore (signed June 2011)
- Malaysia (signed June 2014)
- Hong Kong (signed August 2016)
- China (signed October 2018)
- Taiwan (*signed November 2018)
- Australia (signed June 2019)
- United Kingdom (signed December 2020)
- Thailand (signed April 2022)
- India (signed December 2024)
(*Note: The arrangement with Taiwan is a private agreement between the Japan-Taiwan Exchange Association and the Taiwan-Japan Relations Association.)
source: 財務省
As a result of this agreement, Indonesian importers who use the Japan-Indonesia digital trade platforms TradeWaltz and HAKOVO are expected to receive even greater benefits in the future.