Section V: Mutual recognition

For several years, the WCO and customs administrations have aimed to enhance the security of international supply chains by providing greater ease to safe and reliable economic operators. The WCO SAFE Framework for Securing and Facilitating Global Trade encourages Customs administrations to agree on the mutual recognition of AEOs and security measures.

Strengthened cooperation between trading partners in the areas of security and trade facilitation has played an important role in the EU. Mutual recognition of AEO status is a key element in strengthening and facilitating comprehensive supply chain security and providing traders with multiple benefits.

Mutual recognition means that a country's customs administration:

• recognize the AEO authorization issued under another program and
• agree to provide substantial, comparable and, where appropriate, reciprocal advantages/facilitations to mutually recognized AEOs.

Among others, the advantages of mutual recognition include:

• A reduction in controls: The status of the participating trade association program is recognized by both programs and is used as a risk assessment factor in automated screening systems.
• Risk management: Customs authorities can identify reliable traders and focus their controls on shipments made by unknown or unreliable traders.

Detailed information on mutual recognition is included in Part 6 of these Guidelines.