Customs agreement is reached with ThailandKorea signed a customs agreement on Monday with Thailand on the occasion of President Moon Jae-in’s state visit to the country.
Once implemented, the Authorized Economic Operator (AEO) agreement ensures fewer security and safety-related controls by customs authorities in the two countries and priority treatment at customs clearance.
Through this arrangement, Korean companies certified as AEOs will enjoy faster customs clearance, reduced documentation requirements and simplified cargo inspections.
Certified Thai companies will enjoy similar privileges for their goods exported to Korea.
The customs regulators will designate the companies based on risk management and the management of shipments.
To assess the effectiveness of the AEO agreement, Thai customs tested the system for two months.
“It turns out that AEO-certified companies experienced an 86 percent reduction of customs inspection in Thailand,” the Korea Customs Service said in a statement.
“So, the companies can enjoy decreased costs and shorten delivery time,” it said.
Korea currently has similar arrangements with 17 economies, including the United States, China, Hong Kong and Singapore.
The agreement was reached as the government works to increase trade with the second largest economy in Southeast Asia as the volume of goods moving between the two countries remains relatively low compared to that with other regional partners.
The bilateral trade volume stood at $14 billion last year, ranking sixth among Asean countries, according to the Blue House.
BY PARK EUN-JEE [firstname.lastname@example.org]
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