2023-11-23 09:42:52
Beninese-Chinese cooperation has intensified in recent months with the official working visit to the People’s Republic of China of the Beninese Head of State, Mr. Patrice TALON, but also with the participation in the Shanghai international fair of an impressive delegation. Benin led by the Minister of State, Minister of Economy and Finance in charge of Cooperation Mr. Romuald WADAGNI and the Minister of Industry and Commerce, Mrs. Shadiya ASSOUMAN.
During the same week when the Shanghai International Fair was held, a delegation from Beninese Customs carried out a five-day mission to China, more precisely to Zhuhai and then to Guangzhou, the main objective of which was to validate and then sign the road map. leading to the signing of a Mutual Recognition Agreement (MRA) of their respective Authorized Economic Operator (AEO) Programs. These are the prerequisites for signing an MRA between two States, in accordance with the requirements of the World Customs Organization. The delegation was composed of Idrissou IMOROU, Director of Legislation and Cooperation (DLC), Eloïse DOSSA AKINOCHO, Director of Customs Operations (DOD), and Raouf Malèhossou ABOUDOU, WCO Accredited Experts in Risk Management and implementation of Authorized Economic Operator (AEO) Programs, President of the Coordination and Monitoring Committee for the implementation of the National AEO Program; Félix NOUWADROU, Master Trainer in Intelligence Analysis and Risk Management and other Beninese customs officials.
Indeed, the operationalization of the National Program of Authorized Economic Operators (AEO) within Beninese Customs has aroused great interest among Chinese Customs who have expressed their desire to establish a Mutual Recognition Agreement (MRA) with Customs Beninese authorities for greater cooperation. However, it should be noted that with the implementation of this program developed on the basis of the SAFE Standards Framework of the World Customs Organization, the Beninese Customs Administration is the only country in West Africa with an operational AEO Program.
Launched in May 2019 at the Golden Tulip in Cotonou, the National Program of Authorized Economic Operators (AEO) is making progress with the certification of three (03) companies, notably DHL, the Yerevan supermarket and the Société Béninoise des Boissons Refreshments (SOBEBRA) . As a reminder, the AEO programs developed on the basis of the WCO SAFE Framework of Standards by modern customs administrations around the world aim to facilitate the transactions of economic operators who respect a certain number of criteria and requirements in terms of customs regulations and safety and security standards of the international supply chain.
In addition, as part of the implementation of AEO programs, the World Customs Organization (WCO) provides for the signing of Mutual Recognition Agreements (MRAs) between two (02) or more States whose AEO programs AEO are operational and the different steps to achieve this are clearly defined in the guide on the implementation of AEO programs which today represents the breviary of customs administrations in terms of AEO programs. It is in this context that the People’s Republic of China, in view of the dynamics in which Benin has evolved in recent years in terms of development in all areas, with the creation of a Special Economic Zone which has become attracting all investors from around the world, and also taking into account the ever-increasing flow of trade between our two countries, took the initiative, through the Chinese General Administration of Customs, to propose the signing of a Mutual Recognition Agreement (MRA) of AEO programs currently being operationalized in both administrations.
The first steps towards the realization of this flagship project began in June 2023 with videoconference sessions. These sessions allowed, on the one hand, the customs authorities as well as the teams in charge of the AEO programs in the two countries, to immerse themselves in the content of their respective programs in order to ensure that they were developed on the WCO standards and on the other hand to develop the road map which should lead to the signing of the MRA. In accordance with the WCO’s requirements for signing MRAs, the teams in charge of managing AEO programs in the two countries will be required to go on site to assess in practice the rigor which governs the implementation implementation of the program through validation sessions in which OEA certified operators are involved. It is precisely in this context that a delegation from Beninese Customs went to China. The Chinese side, headed by its Director General, is expected in Benin in May 2024 for the same financial year with the signing of the ARM in mind. In doing so, Benin will become the first country in West Africa to establish this Agreement with China and the third in all of Africa after Uganda and South Africa.
It is important to specify that this approach in which Beninese Customs is taking part with the establishment of an MRA with Chinese Customs is an important lever for economic development, given China’s economic and financial position on the international scene. Without a shadow of a doubt, the implementation of the Authorized Economic Operator (AEO) program constitutes one of the most beautiful and greatest successful reforms within the Beninese customs administration given the status of large countries which make up the Economic Community of West African States (ECOWAS) and which have not succeeded to date in deploying this program which has been implemented within modern customs administrations since 2005. Proof of this is there is still a need for the commitment of the disciples of Saint Matthew alongside the Head of State, to achieve one of his key objectives which is to make the Beninese Customs Administration one of the most modern and most exemplary in the sub-region.
It is with the aim of facilitating the transactions of credible economic operators who respect customs legislation and standards in terms of safety and security of the international logistics chain, that the WCO established the AEO program in 2005, in aftermath of the attacks on the World Trade Center in New York in 2001. This is a voluntary and partnership approach between Customs and economic operators who meet the eligibility criteria. The success experienced by the Beninese customs administration in developing this program has attracted countries such as China. An initiative which met with the approval of the Authorities at the highest level of the hierarchy, notably the Minister of State, Minister of the Economy and Finance in charge of Cooperation, and the General Directorate of Customs.
As Mr. WADAGNI said, after he received Mr. Wang Wentao, Minister of Commerce of the People’s Republic of China on the Benin stand, on the occasion of the Shanghai International Fair in China, “the tasting of our “sugar loaf” pineapple by Mr. Wang symbolizes much more than the appreciation of an exceptionally tasty fruit, it is the taste of the promising future of commercial relations between Benin and China.”
What are the advantages of this new agreement?
It is important to remember that the three (03) AEO certified companies in Benin already benefit from a certain number of significant advantages in terms of speed in the process of removing their goods at the level of all Customs Units throughout the extent of the national territory. Clearly, these companies benefit from priority and special treatment in the management of their files. For example, for their Customs declarations issued, there is no longer any need to contact a Customs inspector for their liquidation. Said declarations bearing the AEO logo are automatically liquidated in the customs system. As for the time taken to obtain the Documentary Verification Certificate (AVD) issued by Bénin Control, it has fallen from 72 hours to 2 hours for AEO certified operators. In addition, unless one of their declarations is randomly selected by the selectivity system, imported or exported goods will not be subject to scanning.
With the strengthening of customs relations with China through the signing of the Mutual Recognition Agreement, future AEO certified economic operators in Benin will benefit from the same advantages or even more in China thanks to greater modernization of Chinese Customs. The harassment suffered in the meantime by Beninese economic operators, most of which are linked to the sanitary and phytosanitary standards imposed on goods coming from African countries to China, will now be a thing of the past for AEO certified companies. This is also the main objective of the Mutual Recognition Agreement (ARM). This bodes well for Beninese economic operators who carry out transactions with China and who will be AEO certified. Beninese Customs plans to certify certain export-oriented companies that carry out a lot of transactions with China. They invite them to contact the General Directorate of Customs, more precisely at the level of the Directorate of Legislation and Cooperation (DLC) to familiarize themselves with the procedures and conditions of certification.
The success recorded in the implementation of the National AEO Program heralds great progress for the modern Beninese customs administration because Moroccan Customs is already positioning itself for the signing of an MRA.
QA November 23, 2023
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