Certified Brazilian companies as Authorized Economic Operators (AEO) will be able to export to the US more quickly and with less bureaucracy. After seven years of negotiations, the Federal Revenue of Brazil signed a mutual recognition agreement with US customs.
The two countries thus formalize the collaboration between their authorized economic operator programs. Under the agreement, the customs authorities of both nations recognize companies that operate in the international supply chain with certified cargo security and compliance with tax and customs standards. Participation in the initiative is voluntary.
Discussions between the technical teams of the Federal Revenue of Brazil and the US Customs and Border Protection Service began in 2015 with the signing of the joint work plan. After the agreement, the Brazilian AEO program became compatible with the Customs Trade Partnership Against Terrorism (C-TPAT), one of the world’s leading supply chain security certification programs.
Now, certified Brazilian companies in AEO-Security will be recognized as safer and lower risk. With greater reliability, inspections of Brazilian exports to the US are expected to be reduced. Furthermore, when cargo from these organizations is selected for verification, they should receive priority in examination.
The US, accounting for 14% of the country’s exports, is Brazil’s second-largest trading partner, with a flow of over $70.53 billion in 2021. Of this total, Brazil exported $31.15 billion to the North American country and imported $39.38 billion.
According to the Ministry of Economy, in the last three years, companies in the AEO Program accounted for 17% of exports to the US. The ministry did not disclose detailed estimates but stated that the measure is expected to lead to increased demand for AEO-Security certification among Brazilian companies.
Source: agenciabrasil.ebc.com.br