Imagine cross-border trade as a highway where goods flow seamlessly, with customs serving as an efficient traffic control center. Brazil and Uruguay are now collaborating to build such a trade "highway" through a landmark customs agreement.
On July 17, 2014, at Uruguay's Ministry of Economy and Finance, Brazilian Customs Director Ernani Checcucci Filho and Uruguayan Customs Director Enrique Canon signed a pilot project marking a significant step in bilateral cooperation on supply chain security. World Customs Organization (WCO) Secretary General Kunio Mikuriya attended the signing ceremony to witness this milestone initiative.
AEO Mutual Recognition: A New Chapter in Trade Facilitation
The Authorized Economic Operator (AEO) program, a global customs security and facilitation measure promoted by the WCO, certifies various supply chain participants including manufacturers, importers, exporters, customs brokers, carriers, and warehouse operators. Certified businesses receive customs clearance benefits such as reduced inspections and priority processing.
This Brazil-Uruguay pilot project represents a practical implementation of AEO mutual recognition. The countries will jointly certify compliant exporters, transporters, and customs brokers at both ends of their bilateral supply chain. Goods handled by these certified operators will undergo inspection only at export points, with direct clearance at import points eliminating further checks.
Implementation Phases: From Bilateral to Regional Cooperation
The cooperation will proceed in three phases:
- Phase One: Bilateral Certification and Mutual Recognition - Establishing unified AEO standards and reciprocal recognition of certifications between Brazil and Uruguay.
- Phase Two: Expanded Certification Scope - Gradually extending AEO certification to more trade participants including importers, transporters, and warehouse operators.
- Phase Three: Regional Expansion - Extending the cooperation model throughout the Southern Common Market (MERCOSUR) and potentially broader regions to enhance regional trade integration.
WCO Endorsement and Strategic Importance
Secretary General Mikuriya praised the bilateral initiative as contributing to both supply chain security and trade facilitation, with potential for regional and global expansion. He emphasized AEO mutual recognition as a core WCO priority for achieving global trade security and efficiency.
Following the signing ceremony, Mikuriya met with young Uruguayan customs officials to discuss global trends in customs modernization, highlighting WCO's commitment to personnel training and capacity building alongside operational initiatives.
Broader Implications of AEO Mutual Recognition
The Brazil-Uruguay pilot project carries significant implications beyond bilateral trade:
- Enhancing trade facilitation through streamlined clearance processes and reduced inspections
- Strengthening supply chain security via robust internal control systems
- Improving business competitiveness through lower operational costs and faster processing
- Advancing regional economic integration within MERCOSUR
- Contributing to global trade security and facilitation through replicable best practices
This customs partnership represents a strategic milestone in South American trade relations, offering a model for regional cooperation while aligning with global standards for secure and efficient commerce.