Recent international trade environment emphasizes that faithful company among supply chains is differenciated as authorized company from unauthorized one through AEO and promotes trade safety. In recent international trade environment, AEO also gives counterpart nation a privilege of customs procedure through mutual authentication, but custom entry has been tightened for cargos of companies excluded from mutual authentication and of non-AEO company, which is a new trade barrier.
AEO has been in operation as of April 15, 2009 in Korea. The purpose of this study is to analyze what needs to be complemented in operation of AEO and to suggest alternatives in order to strengthen the competitiveness of Korea AEO For this purpose, I interviewed and surveyed supply chains including import-export company, shipping company, warehouseman, customs broaker.
The findings of the study can be summarized as follows:
First, communication between customs service, a government agency of AEO and supply chain needs to be encouraged and facilitated. This smooth communication will contribute to voluntary partnership.
Second, related benefits of complying AEO should be clearly informed to all chain supply to heighten company's interest because chain supply raises a question of why AEO is compulsory and
Third, companies authorized by AEO and mutual authentication have been increased in overseas company for each country's interest. It is hard for Korea to assure distribution safety only with large company, as a result, distribution authorization of mid-size company is necessary. Therefore, it is recommended that application of "Authorization of Distribution Safety for Midsize Company" which suites to major countries' distribution regulations such as WCO Work-Frame or C-TPAT(USA), be flexible.
Fourth, incentives are required to company in operation of AEO, if the company has already received authorization from domestic or overseas distribution safety. USA company, such as C-TAP does not need Korea AEO because it has already authorization of distribution safety by investing a lot of cost and effort for authorization.
Finally, MRA for own countries' interest has been effective in most major countries. such as USA and EU. Korea needs to promote AEO mutual authorization for Korean company to strengthen export competitiveness with the experience of successful FTA negotiation.