• The Journal of Industrial Distribution & Business
• /
• v.11 no.2
• /
• pp.25-31
• /
• 2020

Purpose: The AEO (Authorized Economic Operator) program, created in 2001 in the United States due to 9.11 terrorist's attack, fundamentally changed the trade environment. Korea, which introduced AEO program in 2009, has become one of the world's top countries in the program by ranking 6th in the number of AEO certified companies and the world's No. 1 in MRA (Mutual Recognition Agreement) conclusions. In this paper, we examined what trade-economic and non-economic effects the AEO program and its MRA have in Korea. Research design, data and methodology: In this study we developed a model to verify the impact between utilization of AEO and trade-economic effects of the AEO and its MRA. After analyzing the validity and reliability of the model through Structural Equation Model we conducted a survey to request AEO companies to respond their experience on the effects of AEO program and MRA. As a result, 196 responses were received from 176 AEO companies and utilized in the analysis. Results: With regard to economic effects, the AEO program and the MRA have not been directly linked to financial performance, such as increased sales, increased export and import volumes, reduced management costs, and increased operating profit margins. However, it was analyzed that the positive effects of supply chain management were evident, such as strengthening self-security, monitoring and evaluating risks regularly, strengthening cooperation with trading companies, enhancing cargo tracking capabilities, and reducing the time required for export and import. Conclusions: When it comes to the trade-economic effects of AEO program and its MRA, AEO companies did not satisfy with direct effects, such as increased sales and volume of imports and exports, reduced logistics costs. However, non-economic effects, such as reduced time in customs clearance, freight tracking capability, enhanced security in supply chain are still appears to be big for them. In a rapidly changing trade environment the AEO and MRA are still useful. Therefore the government needs to encourage non-AEO companies to join the AEO program, expand MRA conclusion with AEO adopted countries especially developing ones and help AEO companies make good use of AEO and MRA.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.39
• /
• pp.313-344
• /
• 2008

The role of Customs Service has changed significantly in recent times, and what may represent core business for one administration may fall outside the sphere of responsibility of another. This is reflective of the changing environment in which customs authorities operate, and the corresponding changes in government priorities. Since the terrorist attacks on the United States in 2001, customs administrations around the world have been developing AEO programs in which they grant AEO status to operators who are well-compliant with the supply chain security standards. These programs also provide such operators with trade facilitation measures under the customs procedures, acknowledging the importance of ensuring secure and facilitated trade. Thus, this paper analysed leading countries's AEO program regime focused on the two fold : (1)provide an overview and present a implication of its AEO program ; (2)offer an appropriate proposal to Korea Customs Service's new program.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.47
• /
• pp.263-298
• /
• 2010

The global trading system is vulnerable to terrorist exploitation while the international trade is an essential element for the economic development. Customs has a unique role in the international trade to provide increased security while ensuring facilitation of the legitimate flow of goods and the role of Customs has become more and more indispensable these days. In response to this trend, the World Customs Organization(WCO), the organization of more than 170 Customs administrations all over the world, adopted an international framework("SAFE Framework") in 2005, which includes the Authorized Economic Operator(AEO) concept, whereby a party involved in the international movement of goods would be approved by Customs as complying with the supply chain security standards, and given benefits, such as simplified Customs procedure and less Customs intervention. In this stream, the Japanese government has developed and promoted AEO Program in close cooperation with the business sector, aiming at ensuring security while facilitating legitimate trade. For that purpose, Japan Customs, as a main entity in the field of international trade, has developed comprehensive AEO program with combination of programs for importers, exporters, warehouse operators, Customs brokers and logistics operators, such as forwarders and carriers, which are consistent with the "SAFE Framework" developed by the WCO. The purpose of this paper aims to analyse the introduction plans of AEO program for the trade security and trade facilitation with Japanese AEO system.

• Korea Trade Review
• /
• v.41 no.4
• /
• pp.269-291
• /
• 2016

This study suggests an improvement for stable and effective management of the Compliance Program of strategic trade(CP) by comparing and analyzing the program and other similar systems in Korea, the authorized economic operator(AEO) system and the Fair Trade Compliance Program. To improve the CP, training requirements should be materialized, evaluation of companies' ability to judge strategic materials should be intensified, and incentives should be offered to the companies that actively adopt the program. Moreover, the current designation system should be changed to the designation-after-registration system to strengthen and spread out the CP, and the follow-up management should be reinforced for successful management of the program.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.58
• /
• pp.287-311
• /
• 2013

In this study, the scope of previous logistics security were focused only on port and ship. Because of it now extends to the overall (export and import) supply chain areas and in regards with supply security programs in the international level, it reviewed supply chain security programs categorized them into 'ships and port security system', 'container screening system', 'logistics chain authorization system' which are expanded to be adopted in the international level. The major features of those programs are summarized as in building risk management system, providing information ahead, selectivity test and benefits to AEO authorized companies in the customs administration level. The government and companies which are to ensure supply chain security and trade facilitation in order to cope actively with international customs administrative atmosphere need to do the followings : First, they need to build an intra-government integrated supply chain security and make efforts to conclude AEO MRA in order to increase trade competitiveness among major trading countries. Second, they need to build supply chain risk management system in order to enhance management performance through overseas market and company level strategy to obtain and maintain AEO authorization in the company level.

• Journal of the Korean Society for Aviation and Aeronautics
• /
• v.29 no.4
• /
• pp.142-152
• /
• 2021

The International Civil Aviation Organization (ICAO) and the World Customs Organization (WCO) emphasize securing supply chain security through mutual cooperation between aviation security and customs by establishing a standardized security system by regulations, procedures and practices of international air cargo. Accordingly, in accordance with the Aviation Security Act, the known consignors system aims to secure cargo security before loading air cargo into the aircraft, while the customs AEO system is a public-private cooperation program that focuses on simplification of customs clearance procedures. These systems basically have the same purpose of effectively identifying high-risk cargo through a risk-based approach in international air cargo transportation and preventing risks in advance, and the content that a common basic standard for cargo security must be established is also similar. Therefore, it is necessary to establish a cooperation system by simplifying problems such as cumbersome and redundant authentication procedures and on-site verification through coordination of security requirements for mutual recognition between the two systems. As a result, it is necessary to establish a process for coordinating security and customs' supply chain security program and maximize the effect of harmonizing supply chain security by strengthening the linkage between known consignors and AEO.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.54
• /
• pp.45-80
• /
• 2012

Since the 9.11 terror attack, the event which caused supply chain disruption, supply chain security has become more important than ever before. With this as a momentum, a customs supply chain security paradigm emerged intended to guarantee secure flow of cargo across boarder. Under this circumstances Incoterms(R) 2010 rules have allocated obligations between the buyer and seller to obtain or to render assistances in obtaining security clearances. Thus, security related obligations such as providing advance manifest information is the mandatory requirements for any export and import. The impact on the seller and buyer of security related obligations under the Incoterms(R) 2010 rules environment is obvious. Assistance to provide the security information in advance has become indispensable obligations to the seller and buyer. As such assistances is at the cost and risk of the party responsible for the clearances of the goods, the choice of recognised partner and compliance with the relevant security program, in order to enjoy the relevant benefits, becomes paramount.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.72
• /
• pp.115-137
• /
• 2016

Trade can be greatly influenced by the change of international trade environment due to the characteristics of remote transactions. Furthermore, in the circumstance of emphasizing the national security again, the importance of the risk management of special materials has been increasing. As it was noted at Chapter 4, significant results such as the threat of enterprises' sustainable growth can be occurred when companies are related to the unlawful export of strategic materials or experience discouragement of export of main products. As the decision of strategic materials greatly depend on a specialized knowledge there is a possibility of misjudgement of strategic materials in terms of ordinary companies which is not accustomed to them. Furthermore risk management is more difficult due to the inclusion to the items of export license. To prepare such a risk of export of strategic materials, firstly, it should be checked to find whether counter traders are working in the industry which is not related to the spread of weapons of mass destruction, secondly, an appropriate process shall be designed and operated for products to be safely delivered to the trade counter. Therefore, our export enterprises have to introduce CP(Compliance Program), AEO or ISO28000 considering suitability for their actual situations not only to promote export and but also to avoid risk of export control and additional expenses. Through these appropriate processes, an efficient and effective management of the trade risk of strategic materials can be accomplished.