The Mutual Recognition Arrangement (MRA) on Authorized Economic Operator (AEO) between Taiwan and Guatemala was signed on May 28, 2021. Through the Arrangement, the customs administrations of Taiwan and Guatemala are able to mutually recognize each other’s AEO programs. Exporters that are awarded AEO status from Taiwan and Guatemala can both enjoy facilitated customs clearances at their borders.
The Arrangement was signed via video conference by Director General Ling-Yuan Hsieh of Taiwan Customs Administration, Ministry of Finance and Superintendent Mr. Marco Livio Diaz of Guatemala’s Superintendency of Tax Administration, while it was witnessed by Guatemalan Customs Intendent Mr. Werner Ovalle and Taiwan Ambassador to Guatemala Mr. Li-Cheng Cheng.
Taiwan Customs Administration indicates that Guatemala has been an important diplomatic ally and trade partner of Taiwan, with a Free Trade Agreement (FTA) having been signed in 2006. Through this Arrangement, AEO-certified traders from both countries would be able to enjoy the same level of facilitation for their goods exported to the other side, whose competitiveness would then be significantly enhanced in an environment ensuring supply chain security, and favoring just-in-time & zero-inventory logistics management. This, in turn, would have a far-reaching influence on bilateral trade, enhancing economic prosperity of both countries to a new level.
Taiwan Customs has implemented its AEO program since December 2009. Up to date, 807 AEOs have been granted, including 426 general AEOs and 381 Safety and Security AEOs. The trade value of authorized importers and exporters accounts for 48% of Taiwan’s total trade. To maximize the advantage of its AEO program, Taiwan Customs already signed AEO MRAs with the United States, Singapore, Israel, South Korea, Australia, Japan, India, and New Zealand. The fact that Guatemala signed an AEO MRA with Taiwan symbolizes the close, steadfast friendship between the customs administrations of both sides.
Taiwan Customs Administration further indicates that the inking of this Arrangement not only marks a significant milestone for bilateral customs cooperation, but would also significantly enhance supply chain connectivity and economic ties between both countries. It is expected that, through working closely in a consistent manner, the two customs administrations will further strengthen their cooperation on trade facilitation and supply chain security issues.